Discover how and why gold demand surged across Europe in 2025 as investors sought safe-haven assets amid eurozone uncertainty and record-high prices.

European demand for gold surged in 2025.

The drivers of this surge include record-breaking gold prices, investor appetite for safe-haven assets in a changing world, and uncertainty around the euro and other currencies.

The latest World Gold Council’s Gold Demand Trends report shows there is more going on than this surge alone. For example, gold demand in Europe has grown sharply even as jewellery consumption is declining, and gold bar and gold coin purchasing in particular is increasing across Germany, Switzerland and the UK.

In this article, we’ll break down the report’s headlines and answer some of your questions about what 2025’s trends mean for investors. Why are ECB policies relevant for gold demand? Does the euro crisis affect gold buying in Europe? What should investors do if gold demand in Europe is growing?

European Gold Consumption: the Continent Turns Back to Gold

Gold has rarely been more prominent as an asset class for investors in Europe than in 2025.

The World Gold Council data shows total global demand reaching a record 1,313 tonnes in the third quarter of 2025, up 3% year-on-year. Put that in value terms and the increase was even more striking – up 44% to $146 billion. A fourth successive quarter of gold bar and coin purchasing of 316 tonnes fuelled this rise in overall demand.

Across Europe in particular, the bar and coin demand rose 58% over the year.

Germany remained the powerhouse of private gold investment. But the UK recorded an 18% increase as investors look to diversify beyond traditional savings amid continued currency fluctuations and changing markets.

Behind these numbers lies a telling shift: Europeans are buying gold less as adornment and more as protection.

With the euro at its weakest in nearly a decade and inflation pressures lingering, investors across the continent have been turning to physical gold and ETFs to store their wealth. It’s a strategic choice.

Investment Demand Grows

Globally, investment demand grew 47% in the third quarter of 2025, with a total of 537 tonnes of bars, coins, and gold-backed ETFs purchased. The UK and continental Europe played a significant role in one of the strongest quarterly figures in recent years. The region’s bar and coin investment rose 58% compared to the same quarter last year.

Much of this rise was concentrated in September, as the gold price surged to new record highs. This trend continued into October, when the price surpassed $4,000 per ounce.

Persistent geopolitical and economic uncertainty also drove this European investment. The World Gold Council even said ‘FOMO’ (fear of missing out) was another cause of the safe haven flows in September and October.

An acceleration in investment demand across all formats affected gold’s record-breaking price rise – bars, coins and gold ETFs(exchange-traded funds, also known as paper gold).

Together, these figures underline the scale of Europe’s contribution: the continent accounted for nearly one-third of all global ETF inflows and around 9% of worldwide bar-and-coin investment in the third quarter.

Why Are Europeans Buying Gold Again?

The data suggests a clear pattern: across Europe, investors and households are reacting to persistent uncertainty in both currency stability and economic confidence.

• The euro crisis never fully disappeared. Ongoing concerns about debt levels, political fragmentation, and sluggish growth have kept gold’s “safe-haven” appeal alive.
• Inflation remains stubborn. European inflation has eased from previous highs, but levels remain above the target in many nations.
• ECB policy direction is unclear. After years of tightening, expectations of rate cuts and worries about the central bank’s ability to stabilise growth have pushed investors away from ‘gold derivatives’ such as ETFs towards physical gold. See more here: ECB Sounds the Alarm: Is the Gold Market at Risk?

A Tale of Two Gold Markets: Jewellery vs. Investment

It’s time to turn our attention to a broader trend in the report: while gold investment is thriving, jewellery demand has struggled under the weight of high prices.

European jewellery consumption fell by 10% year-on-year in the third quarter of 2025, the weakest level since 2020. The UK, France, and Italy all recorded double-digit declines in volume. However, consumers spent more overall, indicating that gold jewellery remains a symbol of prestige and value.

The World Gold Council’s data suggests a cultural shift. Europeans are buying fewer gold items, but they are increasingly choosing higher-quality pieces such as investment-grade coins and bars instead of decorative items.

Central Banks: The Quiet Accumulators

The British Perspective: Confidence in Tangible Value

UK investors have shown renewed interest in physical gold. With slow economic growth, high living costs, and weak currencies, they are choosing tangible assets.

Just look at the figures: gold bar and coin demand in the UK rose 18% in the third quarter of 2025 compared to last year, reaching 4.2 tonnes.

British demand mirrors the wider European pattern. Investors are moving towards smaller bars and bullion coins, often viewed as affordable entry points into the gold market. GOLD AVENUE offers a wide collection of gold bars as well as gold coins such as the Britannia.

While the Bank of England is not an active participant in recent central bank gold purchases, private investors are doing what central banks have long done: holding gold as a strategic hedge.

Visit our How to Invest in Gold page to find out how you can follow the increased investment trends outlined in the World Gold Council’s recent report.

Conclusion: Gold as Europe’s Safe Haven in a Time of Crisis

Across the continent, gold investment in Europe has taken centre stage as a hedge against political and monetary uncertainty. The result has been an increase in demand across both institutional and retail segments, from ETFs to physical bullion.

The World Gold Council highlights that European gold consumption patterns are shifting dramatically. While jewellery volumes declined across major markets such as France, Italy, and the UK, investment demand for bars and coins more than compensated for the drop.

In total, Europe’s gold demand for investment now accounts for a far larger share of the global total than just a year ago, underlining gold’s renewed role as a safe-haven asset in the eurozone.

One final takeaway from the report: while the gold market is currently powered by “FOMO flows”, much of this activity reflects genuine, strategic positioning by European investors.

Browse our site HERE to keep up with the trend.

FAQs

Q: Why is gold demand rising in Europe?

High inflation and economic uncertainty have boosted gold demand across Europe in 2025.

Q: Why are ECB policies relevant for gold demand?

ECB reserve management and monetary policy directly influence investor confidence and gold buying behaviour in Europe.

Q: Does the euro crisis affect gold buying in Europe?

Yes, the euro crisis increases gold demand as investors seek a safe-haven hedge against eurozone instability.

Q: What are the latest trends in European gold consumption?

European gold consumption is shifting from jewellery to investment, with bar and coin demand rising while jewellery volumes fall.

Q: Why is gold seen as a safe haven in Europe?

Gold can protect savings from inflation, currency weakness, and market volatility, making it a trusted euro crisis safe haven.

Q: How are central banks influencing gold demand in Europe?

European central banks, including Poland and the Czech Republic, are increasing gold holdings to diversify reserves and strengthen stability.

Q: What drives gold investment in Europe today?

Investors are buying more gold to hedge against inflation, diversify portfolios, and protect wealth from euro and market volatility.

Q: Is gold still a good investment for Europeans in 2025?

Yes, gold investment in Europe remains strong as both retail and institutional investors seek stability amid uncertain ECB policies.