By DEI Gold & Silver Coins, Las Vegas. Updated October 2026 with World Gold Council Q2 2026 data.
Key takeaways
- Total gold demand was flat year over year at 1,269 tonnes in Q2 2026. The first half of the year rose 2% to about 2,522 tonnes, worth roughly $380 billion.
- Gold ETFs swung to outflows of 45 tonnes in Q2 as the price cooled from its record highs at the start of the year. Bar and coin demand held up better: down just 3% in Q2 and still up 21% for the half.
- Central banks bought a net 289 tonnes in Q2, up 62% on the same quarter last year.
- Jewelry volumes fell 17% in Q2, yet first-half jewelry spending rose 22% to $86 billion. People are buying fewer grams and paying more for them.
- If you own gold coins, bars or jewelry, these shifts affect what you are offered when you sell. See the section “What this means if you own gold coins, bars or jewelry” below.
Why gold demand looks different in the second half of 2026
What happens when people still want gold, but the price makes buying it harder?
That question explains the market this year. Early in 2026 gold hit record highs and investment demand surged. By the second quarter the price had eased, ETF buyers stepped back, and jewelry shoppers kept cutting the weight of what they bought. Underneath, official-sector buying stayed strong.
The result is two very different engines running at different speeds: investment demand, which responds to fear, diversification and expected returns, and jewelry demand, which responds to affordability, weddings and gifting. Below we break down both, using the World Gold Council’s (WGC) latest Gold Demand Trends report.
What do the latest gold demand numbers show?
Here is the Q2 2026 picture from the WGC’s Gold Demand Trends Q2 2026 report:
Segment | Latest data (Q2 / H1 2026) | What it means |
|---|---|---|
Total gold demand | 1,269t in Q2, flat year over year. H1 up 2% to about 2,522t (about $380bn) | Demand is steady, but it has cooled from the early-year peak |
Gold ETFs | 45t of outflows in Q2. H1 still slightly positive at 18t | Financial investors took profits as the price eased |
Bar and coin | Down 3% year over year in Q2. H1 up 21% | Physical buyers stayed engaged after an exceptional Q1 |
OTC investment | 327t in Q2 and 571t in H1 | Large private and Asian investors are an important source of demand |
Central banks | Net 289t in Q2, up 62% year over year | Official buyers continue to support the market |
Jewelry | Volume down 17% in Q2. H1 value up 22% to $86bn | Fewer grams, higher spend |
The average gold price in Q2 was about $4,506 per ounce, compared with about $3,280 a year earlier. That is roughly 37% higher, which goes a long way toward explaining the jewelry numbers.
For the full year, the WGC says the Q2 rebound did not fully make up for a weaker Q1, so it expects 2026 total demand to finish below 2025. It also expects investment to drive growth in the second half, though the mix of demand could shift.
Is investment still driving the gold market?
Yes, but the investors are changing. In 2025, total gold demand passed 5,000 tonnes for the first time, led by heavy ETF inflows, a 12-year high in bar and coin demand, and record central bank buying. In 2026 the ETF part of that story has weakened, while the physical and official parts have held up.
ETFs versus physical gold
ETF holders can sell in seconds, and many did when the price slipped in Q2. Buyers of physical bars and coins tend to hold for longer, which is one reason bar and coin demand fell only 3% in the same quarter. If you are weighing the two approaches, our guide to bullion investment vs ETF investment explains the trade-offs in plain language.
Central banks are the steady buyer
Central banks and other official institutions bought a net 289 tonnes in Q2. In 2025 they bought 863 tonnes, far above the 2010 to 2021 yearly average of 473 tonnes. In the WGC’s 2025 central bank survey, 95% of respondents expected global central bank gold reserves to rise over the following 12 months. That kind of steady buying helps set a floor under the market. For more on how this feeds into price expectations, see our gold price prediction guide.
How is jewelry demand behaving when prices stay high?
Jewelry demand is not collapsing, but it is changing shape. Global jewelry volume fell 17% year over year in Q2, to roughly 278 tonnes, as shoppers bought lighter pieces and delayed bigger purchases. At the same time, the value of first-half jewelry demand climbed 22% to $86 billion, because each gram costs so much more.
India shows the squeeze most clearly. Its Q2 jewelry demand fell 15% to 75.1 tonnes (from 88.8 tonnes a year earlier), and total Indian demand slipped 6% to 131.4 tonnes. Yet Indian bar and coin demand rose 9% to 50.3 tonnes, a sign that some buyers are moving from wearing gold to holding it.
In the U.S. the same pattern shows up at the jewelry counter: lighter designs, lower karat options, repurposed heirloom gold and more questions about resale value. If you are shopping for a piece, our fine gold jewelry collection is a good place to compare weight and purity.
What this means if you own gold coins, bars or jewelry
Market reports are interesting, but most readers want to know what to do with the gold they already have. These points matter most.
1. Your offer is based on the spot price, but it is not the spot price. A dealer’s offer reflects spot price, purity, weight, condition and the dealer’s own costs. If you have wondered why the number is lower than the headline price, read why you don’t get spot price when you sell gold or silver.
2. Different items are valued differently.
- Bullion coins and bars are priced off the spot price, plus or minus a premium. See how bullion premiums work.
- Collectible and certified coins can be worth more than their metal content, depending on rarity and grade. Our comparison of bullion vs numismatic coins shows how to tell which category you hold.
- Jewelry is usually valued on purity and weight. Read scrap gold value vs investment gold before you sell a piece for its metal.
3. Deciding whether to hold or sell is personal. It depends on your goals, your timeline and how much of your savings is in metals. Our post on what to do when gold is above $4,000 walks through the questions to ask, and the portfolio allocation guide helps you size a position. This is general information, not financial advice.
4. Get an appraisal before you decide. Whether you are thinking of selling, insuring or simply finding out what you have, a free appraisal costs nothing. You can book a free appraisal or see how selling gold and silver to DEI works.
5. If you want to add gold, compare gold coins and gold bars, and see our gold vs silver comparison if you are deciding between the two metals.
What are the biggest risks to the outlook?
- Price volatility hurts jewelry first. If prices spike again, expect more postponed purchases and lighter pieces, especially in wedding-driven markets.
- ETF flows can reverse quickly. Q2’s outflows show how fast financial buyers can step back when the price softens.
- Revenue can hide weak volume. Record jewelry spending does not mean strong demand. Tonnes sold fell, and recycled gold supply also dropped 6% in Q2.
A quick checklist for tracking the market
- Watch ETF inflows and outflows.
- Follow central bank purchase announcements.
- Compare jewelry tonnage with jewelry value, not just one or the other.
- Check India and China for signs of price sensitivity.
- Separate short-term price moves from long-term allocation decisions.
Thinking about selling gold or silver in Las Vegas?
DEI Gold & Silver Coins offers free in-person appraisals and written quotes for gold, silver, rare coins and jewelry. Visit us at 8985 S. Eastern Ave, Suite 160, Las Vegas, NV 89123, call 702-460-5188, or start with our We Buy page. Estate collections are welcome too.
Frequently Asked Questions
Q1. What is driving gold demand in 2026?
In the first half of 2026, demand was supported by bar and coin buying, over-the-counter investment and central banks, with record prices at the start of the year. In Q2, the WGC reported ETF outflows and lower jewelry volumes as the price eased and affordability stayed tight.
Q2. Is jewelry demand for gold falling in 2026?
By volume, yes. Global jewelry demand fell 17% year over year in Q2 2026. By value, first-half demand rose 22% to $86 billion, because prices are so much higher. Buyers still want gold; they are buying less of it.
Q3. Why is investment demand holding up when jewelry demand falls?
The two respond to different triggers. Investors buy for diversification, protection and expected returns, while jewelry buyers are affected by affordability, gifting and wedding cycles. High prices discourage the second group far more than the first.
Q4. Are central banks still buying gold?
Yes. Central banks and other official institutions added a net 289 tonnes in Q2 2026, up 62% from a year earlier, after buying 863 tonnes in 2025.
Q5. Which markets matter most for gold demand?
India and China are the largest physical markets. India is showing clear jewelry weakness from high prices, while its bar and coin demand is rising. Asian investors are also an important driver of over-the-counter demand.
Q6. Should I sell my gold now or hold it?
There is no single answer. It depends on your goals, your holdings and how you feel about price risk. A free appraisal will tell you what your items are worth today, which makes the decision easier. This is general information, not financial advice.
