Global gold demand reaches more than 5,000 tons for the first time, the average LBMA gold price rises significantly – driven primarily by ETFs as well as bars and coins, while jewelry volumes decline and central banks remain large buyers.
Gold Demand 2025: Record Volume and Record Value
In 2025, gold set new standards in several dimensions. According to the latest report by the World Gold Council (WGC), global total demand – including over-the-counter (OTC) transactions – exceeded the 5,000-ton mark for the first time. In total, the overview shows 5,002.3 tons. At the same time, the price of gold rose sharply: on an annual average, the LBMA gold price rose from US$2,386.2 per ounce (2024) to US$3,431.5 (2025). In the final quarter alone, the average was US$4,135.2 per ounce. And according to the report, 53 new all-time highs were also recorded over the course of the year!
In combination, this led to a record demand value of US$555 billion, which corresponds to an increase of 45% compared to the previous year. This is remarkable for the gold market because not only the price but also the physical volumes remained high. The figures suggest that in 2025, gold was not only seen as a short-term crisis instrument, but also played a clear role in the portfolio and physical acquisition in several buyer groups.
Investment Boom: ETFs, Bars and Coins as Drivers
The biggest impulse in 2025 came from the investment sector. The “Investment” demand category jumped from 1,185.4 tons (2024) to 2,175.3 tons (2025) – an increase of 84%. The shift within the investment forms is striking: gold ETFs and similar products turned from a slight outflow (-2.9 tons in 2024) to a strong build-up of 801.2 tons in 2025. According to the report, this was the second-strongest year in this category.
The classic physical acquisition via bars and coins also increased. Overall, this area rose to 1,374.1 tons (after 1,188.3 tons in 2024). Bars in particular increased: from 862.8 tons to 1,068.2 tons. Official coins, on the other hand, were lower (170.5 tons after 199.9 tons), while medal-like and imitation-like coins increased moderately (135.4 tons after 125.6 tons).
The report cites recurring themes as the main motives: security and diversification considerations played a central role. At the same time, the price movements themselves became a factor that triggered further interest in gold – a pattern that is often observed in strongly trending markets.
Central Banks and Jewelry: Opposing Forces
In addition to private and institutional investors, central banks remained important demand drivers – albeit with decreasing momentum. According to the WGC, purchases in the “Central Bank and Other Institutions” category fell from 1,092.4 tons to 863.3 tons (a decrease of 21%). The report classifies this as still “historically elevated,” but emphasizes that the pace has slowed compared to the recent past. In the fourth quarter, central bank purchases fell to 230.3 tons (after 366.6 tons in the same quarter of the previous year).
At the same time, the expected countermovement was evident on the jewelry side: in an environment in which gold repeatedly reached new price levels, jewelry demand fell in terms of volume. Jewelry fabrication fell from 2,026.6 tons to 1,638.0 tons (minus 19%). Jewelry consumption fell from 1,886.9 tons to 1,542.3 tons (minus 18%). Stock building and reduction also moved lower.
Despite these declines, one point remains important: the WGC emphasizes that the value side of the jewelry market increased significantly. Global jewelry demand reached a record level of US$172 billion in value (plus 18%). This underlines that falling tonnages in a high-price environment do not necessarily mean weak market sentiment – the market often adapts via smaller unit weights, different product mixes or changed purchasing habits.
Supply Side: Mines, Recycling and Hedging
On the supply side, the development in 2025 remained comparatively stable. Mine production rose slightly from 3,650.4 tons to 3,671.6 tons (plus 1%). If producer hedging is taken into account, mine supply is almost unchanged: 3,598.0 tons after 3,596.6 tons in the previous year. Net hedging in 2025 was -73.6 tons (2024: -53.8 tons), which slightly influenced the reported mine supply.
More movement came from recycling: the amount of recycled gold rose from 1,365.3 tons to 1,404.3 tons (plus 3%). Overall, total supply thus grew to 5,002.3 tons (plus 1%) – practically on par with total demand. In the system of the table, this results in a market picture in which supply and demand are closely balanced, while the dynamics shift primarily within the demand segments.
Technology demand also remained stable: it was 322.8 tons after 326.2 tons in the previous year (minus 1%). Within this, the electronics sector was practically unchanged (270.4 tons). The report attributes the stability despite disruptions in the consumer electronics segment to growth in AI-related applications – an indication that industrial gold demand is increasingly distributed across different end markets.
The bottom line for 2025 is a clear profile: gold achieved records in price and total value, while the demand side was primarily characterized by investment forms. At the same time, supply rose only slightly – an environment in which shifts in ETF flows, bar and coin purchases, and central bank activity have a particularly strong impact on market perception.
