Indian demand for gold remains one of the dominant global forces in the bullion market with consumers increasingly combing jewellery purchases with investment buying in coins and bars, according to Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.
“This strong appetite for physical gold has supported prices and helped narrow discounts to international benchmarks. Seasonal festivals, weddings, and improved liquidity lifted imports in late 2025,” she told businessline.
Gold and silver appear structurally supported in the near term, though volatility in their prices will continue around US data and Fed signals, she said.
Cautiously optimistic
“Looking at November 2025, the outlook (for gold and silver) remains cautiously optimistic. Gold is still a principal hedge against geopolitical risk and persistent inflation expectations, backed by investor flows and demand from central banks,” said Kamboj.
Gold was the central investment in portfolios in 2025 as it had the potential to hedge risks related to real rates, currency volatility, and geopolitical risk, said the IBJA Vice-President.
Investor flows in gold occurred from large ETF (exchange-traded fund) purchases as well as accumulating central bank purchases that enhanced returns, while equities faced more normal rotation and macro and geopolitical uncertainties.
“Institutions and wealth managers also increased allocations toward gold as a strategic reserve and portfolio support, boosting demand while also positioning gold as a primary defensive asset throughout the year,” she said.
Twin story investment
On silver, Kamboj said silver ETFs recorded remarkable inflows in 2025 but mirrored a twin story of investment demand plus accelerating industrial use, such as renewables, electric vehicles, and electronics.
That surge overstated silver’s upside this year against gold. Still, it is silver’s higher beta that can outperform during rallies but correct more sharply. Silver’s momentum is stronger as industrial demand increases, and ETF flows have tightened the supply fundamentals.
“Investors should balance short-term ETF moves with longer-term physical or strategic allocation,” she cautioned.
On bullion’s prospects in 2026, the IBJA vice-president said gold and silver momentum will depend on Fed policy clarity, real rates, and supply dynamics.
Defensive anchor
From a strategic perspective, the backdrop appears constructive: continued reserve diversification, together with lingering macro risks and the structural deficits for silver, supporting higher trajectories.
“Short-term swings will be inevitable; fundamentally, though, both appear set to retain upside potential into 2026, with gold as a defensive anchor and silver offering stronger cyclical upside, tied to industrial demand,” she said.
On gold purchases by central banks, Kamboj said it there was variation in each quarter this year but the purchases remained elevated with renewed accumulation.
“Reserves diversification, geopolitical hedging, and inflation concerns keep central banks as structural buyers. Purchases are expected to continue at an active pace, although the timing will vary by region and currency strategy. Central banks are likely to be net buyers rather than sellers over the medium term,” she said.
Budget wishes
Her company Aspect Bullion was witnessing rising demand for its investment-grade gold and silver products. “Buyers are now prioritising secure, certified, and high-purity coins and bars, signalling a clear shift from purely ornamental purchases to strategic, long-term asset building,” said Kamboj.
On budget wishes from the bullion sector, the IBJA vice-president said the industry has sought measures to widen formal channels, including clearer duty lines, and facilitation of gold monetisation/EMI schemes to broaden retail access.
“Budget changes will depend on revenue needs, but the sector has made focused requests to boost formal trade, jobs, and exports,” said Kamboj. .
Published on December 2, 2025