Gold ETFs hit record high: India ranks third globally in 2025

Global investors pour in a record $88.5 billion in gold exchange traded funds (ETFs) in 2025 as the precious metal set new highs and demand for gold as safe-haven intensified. That's the highest annual inflow ever recorded for gold funds globally.
 

2025 also saw an interesting shift - Indian investors, known for their love of physical gold, invested over $4.37 billion (~₹36,000 crores) in gold ETFs, with over ₹11,000 crore inflow in December alone. Can you believe it?

To understand why, you need to look at what gold did last year. It wasn't just a good year for gold—it was historic. 

Gold prices in India started 2025 at around ₹61,500 per 10 grams and ended the year at ₹1,35,530. Gold broke its own records 53 times during 2025. That's a gain of over ~120% in just over a year. For context, if you had invested ₹1 lakh in gold at the start of 2025, it would be worth ~₹2.2 at the end of the year. Not many asset classes delivered that kind of return.
 

However, the gold rally didn’t stop there. Today, on January 13, 2026, we're looking at ₹1,42,184 per 10 grams for 24-karat gold.
 

Every time it hit a new high, more investors wondered if they should get in. And many did—through gold ETFs.

India made a serious mark in 2025. We ranked third globally in gold ETF investments, right behind the US and China. Indian investors put in around ₹36,000 crore through the year. That's not a small change. It shows Indian investors are getting comfortable with ETFs to own gold without dealing with physical metal. 

December was wild 

December 2025 was something else entirely. Indian investors put ₹11,646 crore into gold ETFs in that single month. Compare that to November's ₹3,741 crore—that's a 211% jump in just 30 days.

Look at it year-over-year and it gets even more dramatic. December 2024 saw only ₹640 crore in inflows. December 2025? ₹11,646 crore. That's 1,719% higher.

This surge pushed total assets in gold ETFs to ₹1.27 lakh crore by December-end, up 16% from November's ₹1.10 lakh crore, as per data from AMFI. These numbers they tell a clear story—Indians wanted gold exposure badly, and they wanted it through ETFs. 

With the surge in demand for gold ETFs, the gold ETF space also saw expansion in 2025 with seven new gold ETFs launches during the year, collectively raising ₹113 crore. More competition usually means better options and lower costs for investors, which is always good news.

Here's a list of top gold ETFs in India:

India’s first gold ETF – the famous “Gold BeES”, officially Nippon India ETF Gold BeES, outshone every other ETF in the market. With record inflows of ₹ 9,700 crores in 2025, it became not just India's largest gold ETF but also secured the 15th spot globally in terms of fund flows, as per data from World Gold Council.  

What Pushed Gold Prices So High?

Gold didn't just wake up one day and decided to double the price. Several things came together at once: 

Central banks couldn't stop buying 
Banks across Asia and the Middle East were buying gold aggressively throughout the year. This wasn't temporary—it shows a real shift in how countries are thinking about their reserves.

The world felt shaky 
Between geopolitical tensions, trade disputes, and general uncertainty about where the global economy was headed, investors wanted something solid. Gold filled that role.

The rupee took a hit 
This was huge for Indian investors. Not only did gold rise in dollar terms, but the rupee also weakened. So, when you converted dollar gains back to rupees, the returns looked even better. A double benefit.

Inflation worries stuck around 
Despite central banks' best efforts, inflation remained stubborn. When your money is losing purchasing power, gold starts looking pretty attractive.

Rate cut hopes 
As people started expecting interest rate cuts from major central banks, assets like gold (which don't pay interest) became relatively more appealing. 

Let us walk through journey of gold last year with actual prices: 

• January 2025: Gold was around ₹61,500 per 10 grams. The markets were uncertain, but nobody expected what was coming.
• March 2025: Prices climbed to ₹66,400. Central banks, especially in Asia, started buying aggressively.
• June 2025: Gold hit ₹74,500 per 10 grams. Geopolitical tensions were rising, and investors were getting nervous.
• September 2025: Prices crossed ₹87,300. Now, everyone was talking about gold. Rate cut expectations were building globally.
• December 2025: This is when things went crazy. Gold hit ₹1,03,600, and despite the rise Indian investors poured in record ₹11,646 crore in gold ETF alone in a month. 

Indians have always loved gold—we're probably the world's biggest gold bugs. But why are people suddenly going for ETFs instead of jewelry or coins? 

It's Just Easier & Liquid 
You can buy or sell gold ETFs in seconds, in just a click through your trading app. The prices are transparent, its extremely liquid and you don't have to worry about purity.

No Headaches 
With physical gold, you worry about storage, insurance, purity, and making charges. With ETFs? None of that. You get pure gold exposure without the drama.

Much Cheaper 
Jewelry comes with 8-15% making charges. Gold ETFs? Most charge between 0.5-1% annually. Buying gold ETF for investing in gold is a no-brainer!

You Know What You're Getting 
ETF holdings are disclosed daily. Prices track actual gold rates. No one's cheating you, no surprises.

It Actually Works as Protection 
In 2025, when the stock market was going nowhere and the rupee was falling, gold ETFs were making money. That's the whole point of having gold in your portfolio.

Makes Tax Sense 
Hold them for over three years, and you get long-term capital gains tax treatment. Better than some other options. 

Okay, so gold went up 130%+ last year. The question everyone's asking is: should I buy gold now, or did I miss the rally?

Some experts think gold could go even higher—maybe ₹1,60,000- ₹1,75,000 per 10 grams by late 2026. Their logic? Central banks are still buying, geopolitical mess isn't going away, and interest rates might come down more.  

But let's be real here. After such a massive rally, expecting another 130% gain in 2026 would be crazy. Even if gold does well, the rise would be more reasonable. And there's always a chance gold pulls back. If the economy suddenly gets stronger, or if interest rates stay high longer than expected, gold pricescould drop. But that doesn't mean gold has no place in your portfolio.  

As a rule of thumb, every investor should have 5-10% exposure to gold in their portfolios as a hedge against inflation and uncertainty. If you have zero gold exposure, or if you're way below that range, it might make sense to add some. But don't dump all your money into gold at once. That's gambling, not investing.

No asset class wins forever. There’s always a cycle. Right now it’s “gold”, but that doesnt mean it will go up forever.

Here's what makes sense based on what you want: 

Want balanced returns without much drama? 
Go for multi-asset or hybrid funds (they give you 10-12% typically and include gold, stocks, and bonds)

Want higher growth and can handle ups and downs? 
Keep most of your money in equity funds (14-20% returns historically), with gold as a small hedge

Specifically want gold exposure? 
Put 5-10% of your portfolio in gold ETFs.

Can't handle any volatility at all? 
Stick with balanced funds, fixed deposits or NCDs (7-9% returns, but at least you sleep well). 

The main thing? Don't invest based on what gold did last year. Invest based on your actual financial goals and how much risk you can stomach. 

Gold can be really volatile. Yeah, it went up 130% last year, but it can also drop 20-30% when sentiment changes. Ask anyone who bought gold at its 2011 peak—they waited years to break even.

Gold doesn't pay you anything. No dividends, no interest, nothing. Your only return comes from price going up, which depends entirely on what other people are willing to pay for it.

Gold should be part of your portfolio, not the whole thing. Unless you're retired or super conservative, gold shouldn't be your main investment. It's a supporting actor, not the lead. 

Look, the ₹11,646 crore that flowed into gold ETFs in December 2025 tells us something important. Indian investors aren't just about jewelry anymore. We're getting smarter, more sophisticated, and more willing to use modern investment tools like ETFs!  

Coming third globally in gold ETF investments? That's actually pretty impressive. We're not just gold buyers—we're becoming gold investors.

Right now, with gold at over ₹1,42 lacs per 10 grams, it's tempting to jump in. FOMO is real. Everyone's talking about gold, and you don't want to miss out. But here's the thing—good investing isn't about catching every rally. It's about having a plan and sticking to it, whether markets are going up, down, or sideways.  

Gold had its moment in 2025—a spectacular one. Whether 2026 brings more of the same or something completely different, we'll have to wait and see. What we do know is that gold ETFs have proven themselves as a legit tool for Indian investors. And that's probably more important than any single year's returns.  

So, if you're thinking about gold, think about it in the context of your whole financial picture. How much do you have in stock? In fixed income? What are your goals? How much risk can you handle? What's your time horizon?

Answer those questions first. Then decide on gold. Not the other way around.

Thinking about adding gold ETFs to your portfolio? Chat with an Arihant Capital advisor to figure out what makes sense for your specific situation—not just what's trending. 

Disclaimer: Past performance means nothing for future results. Gold prices jump around a lot. Don't invest in gold ETFs just because they did well last year. Base your decisions on your own financial situation and goals. Talk to a financial advisor if you're unsure. 

Data Sources: World Gold Council, AMFI, Bloomberg, Economic Times, CNBC, Gold Price India