Central banks have slowed their purchases of gold, but investors have more than made up the difference

By Barbara Kollmeyer

World Gold Council says total demand smashed records last year

Retail investors are increasingly the power players in gold's ascendance.

Step aside, central banks. Investors are increasingly the power players in gold buying, keeping the fire going under the precious metal's historic rally.

Total gold demand in 2025 exceeded 5,000 metric tons for the first time ever - an "unprecedented value" of $555 billion and a 45% increase from the previous year, the World Gold Council reported in a survey of fourth-quarter and 2025 trends released Thursday.

Global gold exchange-traded fund holdings grew 801 metric tons, marking the second-strongest year on record, and purchases of 174.6 metric tons in the fourth quarter marked a 756% surge over the year-ago period. Central banks, meanwhile, scooped up 863.3 metric tons last year and 230.3 tons in the quarter - a 37% annual drop.

"Safe-haven and diversification motives were consistent themes driving investment interest throughout the year, along with price-driven motivations," the WGC said.

Demand for gold was the biggest ever for a fourth quarter, reaching 1.303 tons, boosted by ETF inflows and a 12-year high for bar- and coin-buying of 420 tons - a 30% annual gain.

The SPDR Gold Shares ETF GLD traded 44.15 million shares on Thursday, the biggest one-day volume since Oct. 21, 2025, and is on pace for the third-highest average month by volume in the last decade. Volume for the most-active gold contract is averaging 254,472, also the largest since October.

Meanwhile, total gold supplies grew to a record of 3,672 tons but still represented just a 1% gain on 2024, largely driven by mine supply and production.

Recycled gold, of which 90% comes from jewelry and the rest from electronic waste such as mobile phones, rose 3% to 1,404 tons. The WGC called that "a relatively muted response to a 67% increase in the U.S.-dollar gold price."

That could change as the price of gold has repeatedly marked new highs - the metal (GC00) was trading at over $5,500 an ounce on Thursday, headed for a fresh record, along with silver (SI00). There are anecdotal signs of jewelry owners looking to cash in on the higher prices. South Korea has reportedly seen an increase in robberies at jewelry stores.

Need to Know: Gold's soaring so fast it's topped Goldman target set only last week. Now a JPMorgan analyst plots path to $8,500.

Also read: Investors aren't scared of record gold and silver prices. Wall Street's price targets are struggling to keep up.

-Barbara Kollmeyer

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01-29-26 0936ET