Gold Buyers Shift Focus from Jewellery to Investment Products

Apr 30, 2026

93 min

Apr 30, 2026 00:31

Gold buyers are moving away from jewellery and buying this instead

## Changing Trends in Gold Purchases

Gold buyers are increasingly turning away from jewellery and opting for bars, coins, and exchange-traded funds (ETFs) due to rising prices and geopolitical uncertainties. This shift is expected to continue through 2026 as these factors drive investment demand.

## Investment Demand on the Rise

The World Gold Council reports that investment demand and central bank purchases are becoming the main drivers of the gold market. In the first quarter of 2026, global gold demand increased by 2% year on year, reaching 1,231 tonnes. The value of this demand surged by 74% to a record $193 billion, highlighting the impact of high prices on consumer behavior.

## Regional Differences in Demand

Retail investors have shown a significant increase in demand for bars and coins, with a 42% rise year on year. China led this trend, with a 67% increase in demand. Other countries like India, South Korea, and Japan also saw higher investment activity. Meanwhile, the US and Europe experienced gains of 14% and 50%, respectively.

## Jewellery Demand Declines

Jewellery demand has decreased globally, dropping 23% year on year to about 300 tonnes. Despite this, the value of jewellery purchases rose by 31% to $47 billion, as consumers spent more on lighter and lower-carat items due to high prices.

## Central Bank Purchases

Central banks continue to be a significant source of gold demand, with net purchases reaching 244 tonnes in the first quarter. Poland, Uzbekistan, and China were among the notable buyers, while some countries like Turkey and Russia sold gold.

## Outlook for Gold Market

The gold market is influenced by interest rates, with higher bond yields potentially limiting ETF demand. However, geopolitical risks continue to support gold investment. The World Gold Council anticipates positive investment demand in 2026, although it may not reach the levels seen in 2025.

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