Emerging markets have accounted for roughly 70% of global gold demand over the past decade, with China and India alone representing nearly half of all worldwide purchases, according to data compiled by The Kobeissi Letter. The supporting evidence appears in the cited X post.
The figures underscore how deeply consumption patterns in Asia shape the long-term floor for gold prices, regardless of short-term macro shocks.
Gold has fallen approximately 10% since the outbreak of the US-Iran war, as surging oil prices diverted capital away from safe-haven assets. Yet structural demand from the world’s two most populous nations continues to absorb supply and limit deeper drawdowns in the market.
China Leads With 27% of Global Demand, PBoC Buying Uninterrupted
China is the single largest contributor to global gold consumption, accounting for 27% of total demand, as outlined in a Kobeissi Letter data post on X. The People’s Bank of China extended its gold-buying streak to a 17th consecutive month in March, adding 5 tonnes to bring total reserves to 2,313 tonnes. That figure represents roughly 9% of China’s total foreign reserves, and the central bank added 7 tonnes across the full first quarter of 2026, according to the World Gold Council.
Chinese retail and institutional investors also continued accumulating gold through exchange-traded funds despite the price decline. The World Gold Council noted that the CSI300 stock index fell 6% in March and the yuan depreciated 0.8% against the dollar, creating a dual pressure on domestic portfolios.
Those conditions, combined with safe-haven appetite prompted by the US-Israel-Iran conflict and broader regional tensions, fueled continued inflows into local gold ETFs.
The council’s commentary specifically highlighted dip-buying behavior during the first half of March, suggesting Chinese investors treated the pullback as an entry opportunity rather than a warning signal.
That behavioral pattern reinforces China’s role not just as a passive consumer of gold but as an active price stabilizer during volatile periods.
India's $5 Trillion Household Holdings Signal Deep Structural Demand
India ranked second globally, contributing 21% of total gold demand. The scale of Indian gold ownership is striking: ASSOCHAM estimates that Indian households hold gold valued at approximately $5 trillion, a figure that exceeds the combined reserves of the world’s ten largest central banks.
That concentration of private wealth in a single commodity reflects centuries of cultural tradition and a deeply embedded preference for physical gold as a store of value.
The World Gold Council separately estimates that Indian household and temple holdings total around 25,000 tonnes, worth roughly $2.4 trillion. That sum represents nearly 56% of India’s projected nominal GDP for 2026, a ratio that has no close parallel among major economies.
Unlike central bank reserves, which are subject to policy decisions, these holdings are largely illiquid and sit outside the formal financial system, making them a persistent structural underpinning for global demand.
India’s demand is also driven by seasonal and religious factors that do not correlate closely with macroeconomic cycles.
Wedding seasons, harvest festivals, and auspicious calendar dates generate predictable surges in physical gold purchases each year, giving the market a recurring demand base that is largely immune to short-term price volatility or geopolitical noise.
Outside Asia, North America and Europe contributed 11% and 12% of global gold demand respectively, according to the same data. Those figures confirm that Western markets, while significant, play a secondary role in setting the structural direction of long-term gold consumption.
Their influence is more pronounced during acute risk-off episodes, such as the current conflict-driven environment, but they do not anchor baseline demand the way China and India do.
On the supply side, mine production accounts for 74% of total global gold output. Africa leads all regions with a 26% share of supply, followed by Asia at 19%.
The Commonwealth of Independent States, Central America, and South America each contribute around 15%, while North America accounts for 14%. The geographic separation between top consumers and top producers adds a layer of logistical and geopolitical complexity to gold’s global supply chain.
The data presents a market where short-term price pressure from oil shocks and war-driven uncertainty sits in direct tension with a multi-decade demand story anchored in Asia.
As long as Chinese central bank buying and Indian household accumulation continue at current rates, the structural bid underneath gold remains intact even when macro headwinds push prices lower in the near term.
Not Financial Advice: This article is for informational purposes only. Crypto investments are highly volatile. Always do your own research.
