Key Highlights
- Big jump: Gold ETF assets rose to ₹1.91 lakh crore in August 2026, up 164% from ₹72,500 crore a year earlier.
- Silver too: Silver ETFs held about ₹85,000–86,000 crore.
- Multi-asset boom: Multi-asset allocation funds held over ₹2.07 lakh crore, up 57%, with 60 straight months of inflows.
- Changing habits: Younger buyers prefer lighter jewellery, shrinking jewellery’s share of gold demand.
- Beyond hedging: Investors increasingly use commodities for diversification and risk management.
Indians are increasingly buying gold without ever holding it. Gold exchange-traded fund (ETF) assets in India rose to ₹1.91 lakh crore in August 2026, up 164% from about ₹72,500 crore a year earlier, according to a report by Emkay Global Financial Services. That is roughly 2.6 times in a single year.
The Numbers
| Category | Assets (August 2026) | Change |
|---|---|---|
| Gold ETFs | ₹1.91 lakh crore | +164% YoY |
| Silver ETFs | ~₹85,000–86,000 crore | – |
| Multi-asset allocation funds | ₹2.07 lakh crore+ | +57% YoY; 60 straight months of inflows |
Why It Matters: Two Forces at Work
The surge in gold ETF assets reflects two things at once. First, gold prices have been strong. Gold began 2026 by setting 11 new highs in its first two months, which automatically raises the value of ETF holdings. Second, more investors are choosing ETFs, which offer gold exposure without worries about purity, storage or making charges.
So the 164% jump is not all fresh money; part of it is price gains. But the trend in investor behaviour is clear, and it is backed by the steady rise of multi-asset funds, which have drawn inflows every month for five years.
A Generational Shift
Sheela Kulkarni of the World Gold Council highlighted how demand is changing. Jewellery is making up a smaller share of consumption, she said, as younger buyers prefer lighter pieces and spend more on experiences. For many of them, gold is becoming an investment held in a demat account rather than ornaments in a locker.
Industrial Metals Join the Story
The report also pointed to rising structural demand for copper, aluminium and zinc. Beyond their traditional link to construction and manufacturing, these metals are now driven by electrification, renewable energy, power transmission and technology infrastructure.
“As commodity markets become deeper and more institutional, the role of broking firms must evolve from execution to becoming multi-asset advisors and risk-management partners,” said Rahul Rege, CEO – Broking, Emkay Global.
What It Means for Investors
- Volatility cuts both ways: Gold prices have swung sharply this year, falling from highs in recent weeks.
- Diversify, don’t concentrate: Commodities work best as part of a balanced portfolio.
- Know the product: Multi-asset funds mix equity, debt and commodities; they are not pure gold funds.
The Bottom Line
Gold remains India’s favourite asset, but the way Indians own it is changing fast, from jewellery boxes to ETFs and multi-asset funds.
With inputs from IANS.