Global gold demand surged to an all-time high in 2025, with total consumption reaching 5,002 tonnes, according to the World Gold Council’s latest Gold Demand Trends report.
The record result was largely driven by exceptional investment activity during the final quarter that capped off one of the strongest years on record for the precious metal.
The report showed annual global gold demand was valued at around US $555 billion, marking a year dominated by geopolitical uncertainty, volatile markets, and persistent economic challenges that encouraged investors to seek refuge in gold.
Investment demand was the clear standout, rising to 2,175 tonnes and setting a new high. Investors turned to both physical and financial gold assets, adding 801 tonnes to exchange-traded funds (ETFs) worldwide.
Physical bar and coin purchases also grew sharply, reaching 1,374 tonnes, worth about US $154 billion.
China and India drove much of this activity, recording year-on-year growth of 28 per cent and 17 per cent respectively, and together accounting for more than half of global bar and coin demand.
Central bank buying continued to provide strong support for the gold market.
Official sector institutions added 863 tonnes to their reserves in 2025, below the record-breaking 1,000-tonne levels seen between 2022 and 2024 but still among the highest annual totals on record.
The data affirmed the ongoing importance of gold as a reserve asset during times of uncertainty.
Jewellery demand softened as expected amid higher prices, falling 18 per cent from 2024 levels.
Despite the volume drop, the value of global gold jewellery sales rose 18 per cent to US $172 billion, reflecting the metal’s sustained consumer appeal even at elevated price points.
On the supply side, total availability of gold reached a new peak.
Mine production climbed to 3,672 tonnes, while recycling contributed modestly higher volumes, increasing 3 per cent despite strong prices.
Louise Street, Senior Markets Analyst at the World Gold Council, noted that 2025 was a year in which surging demand and price highs underscored gold’s safe-haven appeal.
She said investors had actively pursued gold through multiple channels in response to the growing sense that economic and geopolitical risks were becoming a long-term feature of the global landscape.
Although jewellery volumes fell, Street observed that the relatively small scale of the decline (alongside continued central bank accumulation) reflected enduring confidence in gold.
Looking ahead to 2026, she said that the upward momentum in gold demand was likely to continue given the ongoing instability.
From an Australian perspective, gold investment trends followed the global momentum.
According to Shaokai Fan, the World Gold Council’s Head of Asia (ex-China) and Global Head of Central Banks, Australian bar and coin demand rose 35 per cent in 2025 to reach 15 tonnes.
The December quarter alone saw a 45 per cent increase to 5.3 tonnes, pointing to sustained confidence in gold as a long-term asset.
ETF investment also accelerated, with local holdings expanding by 9.4 tonnes to 52 tonnes — an all-time record increase in value terms of about US $1 billion.
Fan highlighted that while total ETF demand remained slightly below the pandemic-era highs of 2020, investor motivation had shifted.
Australian investors were now viewing gold more as a strategic portfolio diversifier than as a temporary reaction to market turmoil.
Total Australian gold consumption rose 11 per cent year-on-year in 2025, despite a 22 per cent dip in jewellery demand, which the Council described as resilient given the steep price climate.
