Akshaya Tritiya 2025: Gold ETFs Witness Strongest Demand in 3 Years, Says World Gold Council

New Delhi, April 2025: As the festive season of Akshaya Tritiya approaches, Gold ETFs (Exchange Traded Funds) in India have experienced a significant surge in demand, marking the highest growth in the past three years, according to the World Gold Council. The quarter ending in March 2025 saw Gold ETFs holdings in India increase from around 21 tonnes in 2020 to over 63 tonnes, a remarkable rise indicating growing investor confidence in gold as a form of investment.

Akshaya Tritiya, one of the most auspicious days for buying gold in India, has traditionally been a time when demand for physical gold skyrockets. However, the rise in popularity of Gold ETFs is shifting the gold-buying landscape. These dematerialised gold products offer investors an easy way to gain exposure to gold without having to physically hold or store the metal.

Gold ETFs have been increasingly seen as an attractive investment option for a new generation of investors who are looking for liquidity, transparency, and lower costs compared to traditional physical gold. In addition to the increasing interest in digital gold assets, many investors view Gold ETFs as a more efficient and safer way to diversify their portfolios.

What’s Driving the Demand?
The demand for Gold ETFs has been attributed to several key factors. Firstly, India’s growing middle class and increasing financial literacy have led to a wider adoption of financial products like Gold ETFs. Secondly, the recent uncertainty in global markets, including inflation concerns and economic fluctuations, has encouraged many investors to turn to gold as a hedge against potential risks. Furthermore, the continued growth of the Indian economy, coupled with gold’s traditional status as a safe-haven asset, has further fueled demand.

World Gold Council’s View
According to the World Gold Council, this growth in Gold ETF holdings demonstrates the shift in investor behavior, with many choosing paper-based gold investment options over traditional physical gold, like jewelry or coins. The ease of trading, coupled with lower storage and insurance costs, has made Gold ETFs a more attractive alternative for younger investors looking to capitalize on gold’s steady appreciation over time.

The Future Outlook
As we approach Akshaya Tritiya 2025, analysts are predicting that Gold ETFs will continue to see strong growth, driven by both retail investors and institutional demand. With gold prices expected to remain stable or increase in the coming years, Gold ETFs are likely to become an even more prominent feature of the Indian investment landscape.

Gold’s role in India’s financial ecosystem is evolving, with Gold ETFs offering an innovative, secure, and accessible way for investors to tap into the precious metal’s long-term value. As more investors move towards dematerialized gold, the popularity of Gold ETFs is expected to grow, positioning them as a staple of India’s investment market.

Conclusion
The surge in demand for Gold ETFs, especially during key events like Akshaya Tritiya, reflects a broader shift in how Indian investors are approaching gold investments. With the rise in digital financial products, Gold ETFs are leading the way, offering a modern, efficient, and secure alternative to traditional gold buying practices.