Singapore gold investment soars 37% to 2.2 tonnes in Q2 while jewellery demand wanes

[SINGAPORE] Investment appetite for gold remains strong in Singapore, with 2.2 tonnes of gold bars and coins purchased in the second quarter of 2025, according to the World Gold Council’s latest report released on Thursday (Jul 31).

Meanwhile, gold jewellery demand in Singapore declined 8 per cent to 1.5 tonnes, as record gold prices curbed spending power and global jewellery buying slumped to pandemic-era lows.

While the 2.2 tonnes of gold investment in Singapore represent a 37 per cent rise from Q2 last year, the amount is below the prior-quarter’s 2.5 tonnes, which was the highest on the council’s record.

In South-east Asia, gold investment demand in Q2 continued to grow across Indonesia, Malaysia and Thailand, with double-digit year-on-year increases. However, Vietnam saw a 20 per cent decline compared with the same period last year.

Globally, total bar and coin investment increased 11 per cent year on year, adding 306.8 tonnes.

Chinese investors led the way with demand reaching 115 tonnes, while Indian investors continued to add to their holdings, with a total of 46 tonnes in Q2. European net investment more than doubled to 28 tonnes, while US bar and coin demand halved to 9 tonnes in the second quarter.

Fan Shaokai, head of Asia-Pacific (ex-China) and global head of central banks at the World Gold Council, noted that geopolitical tensions, market volatility and macroeconomic uncertainty will continue to drive investment demand in gold.

Meanwhile, gold exchange-traded fund (ETF) investment continued to drive total demand, with record inflows of 170.5 tonnes over the quarter, compared with outflows in Q2 last year. Global gold ETF demand reached 397 tonnes, the highest first-half total since 2020, noted the council.

On the other hand, central banks and other institutions’ buying dropped 21 per cent on the year to 166.5 tonnes.

“While central bank gold purchases slowed for a second consecutive quarter, demand remained robust, underscoring gold’s enduring appeal as a store of value and portfolio diversifier,” said Fan, who expects central banks to continue to add gold to their reserves in the long term.

Overall, total gold demand reached 1,249 tonnes, including over-the-counter transactions. This was a 3 per cent rise on the year amid a high-price environment, where annualised gold prices stood at US$3,280.4 per ounce in the quarter, based on the report.

Jewellery demand

The council highlighted that jewellery demand continued to decline with the consumption volume down 14 per cent on the year, nearing low levels last seen in 2020 during the Covid-19 pandemic.

In particular, jewellery demand in China dropped 20 per cent to 69.2 tonnes, and Indian demand fell 17 per cent to 88.8 tonnes.

However, the global jewellery market in value terms increased to a total of US$36 billion under record gold prices.