Gold ETF assets in India surge 164pc to Rs 1.91 lakh crore

Gold ETF assets in India rose 164 per cent year-on-year to Rs 1.91 lakh crore in August 2026, according to an Emkay report. Silver ETFs and multi-asset funds also recorded substantial assets, reflecting growing interest in diversification and commodity-linked investments

New Delhi: Gold exchange‑traded fund assets in India rose to Rs 1.91 lakh crore in August 2026 up 164 per cent from about Rs 72,500 crore a year earlier, a report said on Thursday.

The report from Emkay Global Financial Services said commodities are increasingly moving beyond their traditional role as a hedge, with investors and institutions considering precious and industrial metals for diversification, liquidity and risk management.

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Silver ETFs held about Rs 85,000–86,000 crore as of August, the report said, highlighting growing financialisation of gold, an expanding commodity derivatives market and rising structural demand for industrial metals such as copper and aluminium.

Copper, aluminium and zinc have traditionally served as indicators of economic activity, with demand rising alongside construction, manufacturing and infrastructure investment. Increasing electrification, renewable energy infrastructure, transmission networks and technology-led infrastructure are now adding new structural demand drivers for industrial metals.

Multi‑asset allocation funds in India held more than Rs 2.07 lakh crore in August 2026, up nearly 57 per cent year‑on‑year, with the category recording positive flows for 60 consecutive months.

While these funds are not commodity funds and they are increasingly used to navigate different economic environments, the report noted.

Sheela Kulkarni, Head of Market Development, Investments and Institutional Investor Relationships, India, World Gold Council, highlighted the changing composition of demand with jewellery accounting for a smaller share of consumption as younger consumers increasingly prefer lighter jewellery and allocate spending towards experiences and other products.

“As commodity markets become deeper and more institutional, the role of broking firms must evolve from execution to becoming multi-asset advisors and risk-management partners,” said Rahul Rege, CEO – Broking, Emkay Global Financial Services.

However, gold began 2026 on a strong note, recording 11 new highs in the first two months.