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The World Gold Council (WGC) reported a sharp increase in gold demand in Indonesia during the first quarter of 2026, driven by growing investor interest in gold as a safe-haven asset.
According to Shaokai Fan, retail investors worldwide have been attracted by strong gold price momentum and the metal’s appeal as a hedge against economic uncertainty. This trend pushed global demand for gold bars and coins up 42% year-on-year (YoY) to 474 tons in Q1 2026.
China recorded the largest jump, with gold demand soaring 67% YoY to a record 207 tons, far exceeding the previous quarterly high of 155 tons set in Q2 2013.
Other Asian markets, including India, South Korea, and Japan, also posted significant growth in gold bar and coin purchases. The rising demand reflects an ongoing structural shift in the global gold market, supported further by stronger demand in the United States and Europe, where purchases increased 14% and 50%, respectively.
“In Indonesia, demand for gold bars and coins surged 47% annually to 23.6 tons. This increase reflects the global trend where gold’s status as a safe-haven asset attracts investors concerned about economic uncertainty and inflation,” Shaokai said during a press conference on Wednesday (May 13, 2026).
Shaokai explained that historically, gold has proven to be one of the most reliable crisis hedging instruments for Indonesian investors. During the 1997–1998 Asian financial crisis, gold helped preserve purchasing power as the rupiah sharply depreciated. Similar patterns have repeatedly emerged during periods of currency weakness and market stress.
The WGC also noted that in 2025, gold outperformed most domestic and global equities, as well as rupiah-denominated bonds. In Q1 2026 alone, gold prices climbed 14% in rupiah terms, while Indonesia’s domestic stock market corrected by 13%.
Beyond crisis periods, gold has continued to deliver stable long-term returns, averaging approximately 15% annual growth in rupiah terms over the past two decades.
“WGC analysis shows that allocating just 2.5% of an Indonesian investor’s portfolio to gold can improve portfolio quality by reducing concentration risk and strengthening diversification,” Shaokai added.