Tag: investing

Business

India’s Gold Demand Drops 16% in Q3 2025 Amid Record Prices, Investment Buys Surge

Tanisha Cardozo

India’s gold demand declined by 16% year-on-year in the July-September quarter of 2025, as record-high prices curtailed jewellery purchases even as investment buying showed remarkable growth, according to the World Gold Council (WGC). Total gold demand dropped to 209.4 tonnes in Q3 2025, compared with 248.3 tonnes during the same period last year. Despite the lower volume, the value of gold demand rose sharply by 23% to Rs 2,03,240 crore from Rs 1,65,380 crore, reflecting a surge in gold prices.

Gold jewellery, which forms the bulk of India’s consumption, fell 31% to 117.7 tonnes from 171.6 tonnes a year ago. However, consumers continued to adjust to high prices, keeping the total value of jewellery purchases steady at around Rs 1,14,270 crore. In contrast, investment demand grew 20% by volume to 91.6 tonnes and surged 74% in value to Rs 88,970 crore, highlighting Indian consumers’ growing commitment to gold as a long-term store of wealth.

The average gold price in India during the quarter climbed to Rs 97,074.9 per 10 grams, up 46% from Rs 66,614.1 a year earlier, excluding import duty and GST. Internationally, gold prices averaged $3,456.5 per ounce, compared with $2,474.3 in the same period last year.

Sachin Jain, Regional CEO (India) of the WGC, noted that despite the drop in overall demand, early signs of recovery were visible in October, driven by the festive and wedding seasons. Many consumers advanced wedding-related purchases in anticipation of further price increases, which could support strong fourth-quarter demand.

Gold imports fell 37% to 194.6 tonnes from 308.2 tonnes a year earlier, while recycling declined 7% to 21.8 tonnes. The WGC noted that the lower import volume reflected the exceptionally high base in the previous year, following a duty cut announced in the July 2024 budget that triggered a surge in purchases.

For the full year 2025, the WGC expects India’s gold demand to total between 600 and 700 tonnes, likely near the higher end of that range, after cumulative demand of 462.4 tonnes in the first nine months. Globally, gold demand hit a record 1,313 tonnes in Q3, driven mainly by central bank buying and investment inflows, with Poland’s National Bank as the largest central bank buyer.

Jain emphasized that India’s demand profile differs from global trends, where central bank purchases and investment flows dominate, as jewellery demand remains predominantly an Indian phenomenon. Geopolitical uncertainties, trade tensions, and diversification of dollar reserves into gold are expected to keep prices and demand momentum firm in the months ahead.

Finance

Calcutta Stock Exchange Prepares for Final Exit After 117 Years

Tanisha Cardozo

The end of an era is near for one of India’s oldest financial landmarks. The Calcutta Stock Exchange (CSE), established in 1908, is preparing to voluntarily exit its role as a stock exchange after years of operational dormancy and prolonged legal battles.

A century ago, CSE was a powerhouse of trade in the eastern region of India, standing toe-to-toe with the Bombay Stock Exchange. Its building on Lyons Range in Kolkata symbolized prosperity, enterprise, and financial ambition for decades. However, over time, the momentum slowed. After a massive settlement crisis tied to the Ketan Parekh scam in the early 2000s, CSE’s influence began to wane. Trading was officially suspended by SEBI in April 2013 due to regulatory non-compliance and failure to adopt modern trading frameworks.

In February 2025, the exchange submitted a formal application for voluntary exit to SEBI. The decision followed a shareholder vote held in April 2025, where the majority approved a transition plan that would see CSE shift from an exchange to a holding company. Its broking subsidiary, CSE Capital Markets Pvt Ltd (CCMPL), will continue operations through affiliations with the BSE and NSE.

SEBI has appointed Rajvanshi & Associates as the valuation agency to oversee the financial assessment of the exchange, and the exchange has already offered a Voluntary Retirement Scheme (VRS) to employees. The move is expected to save ₹10 crore annually, with ₹20.95 crore allocated for staff exit packages.

Part of the transformation also involves the sale of CSE’s prized 3-acre property on EM Bypass to real estate group Srijan for ₹253 crore — another indicator of the exchange’s shift from traditional market functions to asset management.

The 2025 Diwali season is likely to be its last as a functioning entity — a poignant and symbolic farewell. Kolkata’s iconic financial monument, which has stood tall for 117 years, will cease to operate as a stock exchange, representing the larger story of how India’s capital markets have consolidated over the last two decades.

This voluntary exit is more than a regulatory process. It is the final chapter of a historic institution that once played a pivotal role in India’s financial growth — and a reflection of how regional exchanges have given way to national and global trading platforms in an increasingly digital, centralized world.