Indian investors are shifting capital into gold at an unprecedented rate, with gold ETF inflows hitting a record high of approximately $3 billion, according to recent data. This marks the first time gold fund inflows have surpassed equity mutual fund inflows, with a surge of over 900% since July. The trend signals a major change in asset allocation among retail investors in the world’s second-largest gold consumer.
Indian investors are rushing into gold, pushing exchange-traded fund inflows to a record of nearly 250 billion rupees, or about $3 billion. For the first time, these inflows have surpassed those going into equity mutual funds.
This surge represents an increase of more than 900% since July of last year. Over that same period, equity fund inflows declined by 170 billion rupees, or roughly $2 billion.
The data was highlighted in a recent social media post. It notes India’s position as the world’s second-largest gold consumer and a major importer.
The shift indicates a fundamental change in how Indian retail investors are allocating capital. They are now choosing gold over equities for their portfolios.
Amid this trend, investor Ray Dalio has commented on gold’s strategic role. He discussed the nature of money and gold’s place in the global financial system.
“When it comes to gold, some people view it as a commodity to speculate on. But it’s so much more than that,” Dalio stated. He described gold as the world’s second-largest reserve currency and an important hedge against risks to fiat currencies.
