EU ramps up gold and coin buying — here's why
In the second quarter of 2025, interest in gold reached a new peak — demand for the precious metal worldwide increased by 3% year-on-year. Bars, coins, and ETFs were especially actively bought in Europe.
As noted in the report of the World Gold Council (WGC), the reasons were geopolitical tensions, trade risks, inflation, and rising gold prices. In monetary terms, total demand jumped by 45%, to a record USD 132 billion — such a scale was not recorded even during the pandemic period.
"Global markets seek safe havens — and gold is once again the top choice," WGC analysts note.
Investments in gold ETFs have hit a record high since 2020
The most notable growth was demonstrated by ETFs — instruments that allow investing in gold without physically owning the bars. Over the quarter, their reserves increased by 170 tons — almost twice as much as in the previous period. Investors from North America, Asia, and Europe invested the most actively.
European funds attracted 24 tons, mainly at the expense of Germany, the UK, and Switzerland. Experts indicate that investors are reacting to uncertainty in the macroeconomics and are looking for instruments to preserve capital.
"Restoring confidence in gold ETFs is a response to global turmoil and fears of instability," WGC explains.
The bullion and coin market has recovered to a 12-year high
The physical gold segment is also experiencing a revival. According to the WGC, global demand for bars and coins reached 307 tons, up 11% from a year ago. This is the best figure for the first half of 2013.
In China, investors bought 115 tons in the quarter, and in total since the beginning of the year — 239 tons, which is 26% more than in the same period in 2024. The reason was the weakness of the stock market and risks in the economy. In India, demand grew to 46 tons, supported by online sales and small coins.
In Europe, sales of coins and bars increased by 156% — to 28.4 tons. Small formats (1-20 grams), which are convenient to buy and store, became the most popular.
Central banks have slowed down gold purchases
Despite the general increase in interest, central banks have somewhat slowed down the pace of replenishment of reserves. In the second quarter, they purchased 166 tons — 21% less than last year. However, this volume still exceeds the average annual values of the last decade.
The most active buyer was the National Bank of Poland (+19 tons), followed by Kazakhstan, Azerbaijan, Turkey, and China. Interestingly, almost 90 tons of purchases took place anonymously — that is, the states do not disclose these transactions publicly, but they are included in the statistics.
What is the essence of the gold boom in the EU?
Amid geopolitical uncertainty, European investors are seeking to lock in stable assets. The real estate market is volatile, stocks are volatile, and deposits do not cover inflation. That is why gold — especially in small formats — has become the chosen instrument for preserving value.
Gold prices are also stimulating demand. The average price per ounce in April-June 2025 reached USD 3,280 — 40% more than a year earlier. Mining grew by only 3% (to 909 tons), and the volume of processing remained low, which further limited supply.
"Gold prices are rising, but supply is not keeping up — that's why investors are looking to consolidate their positions now," the analysts say.
Forecast until the end of 2025
The WGC predicts that interest in gold will remain high, although there may be minor corrections. ETFs will continue to attract investment, but their dynamics will depend on the situation with the USD and rates. Physical gold will continue to grow in demand, especially in the retail segment, despite the high price.
In Europe, interest in bars and coins is likely to remain, both due to macroeconomic risks and the desire to keep savings without being tied to the banking system.
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