Gold prices will continue to rise, no option exists: World Gold Council CEO – CNBC TV18

World Gold Council CEO David Tat said that gold is an important asset, not only for investors, but also for central banks.

Speaking at Moneycontrol’s Global Wealth Summit 2025, Tat insisted that gold prices would continue to be pushed more under increasing global debt and inflation pressure.

Gold prices have increased by more than 12% this year, which is at a record height.

“The world’s sovereign debt is $ 76 trillion, with another $ 13 trillion added. Tariff and inflation yield decreases, causing debt financing is a major concern. Gold has always filled that difference, and I have no choice for prices, ”Tat was said in the Moneycontrol report.

Tat Gold sees strong potential for ETF, especially in India, China and Japan. He said that many institutions, asset managers and mutual funds have not yet considered gold as investment.

In Japan, younger generations have inherited money from their elders and are more economically literate and can increase gold investment.

“In China, insurance firms are allowed to invest only in gold. The market is priced at $ 4.8 trillion, and while current investment is only 1%, even 5% allocation can be a game changer. Many people will probably invest 10–15%, ”he said.

India’s demand for gold will get additional boost from central bank procurement.

Tat reported that developing economies still have relatively low gold reserves and will remain accumulated between economic and geopolitical uncertainties.

“In India, you have a huge youth population. But what will be the demand to buy Central Bank. Developing central banks is still a risk of low gold, and they manage stores like individual investors. They will continue to submit, ”they were said in the report.

Gold ETF sovereign to replace gold bonds

The Government of India recently discontinued the Supreme Gold Bond (SGB) scheme citing high lending costs. In 2015, SGB allowed retail investors to buy paper gold as an alternative to physical holdings.

Tat believes that the Gold ETF will now take the center step.

“SGBs were great for investors but were not equally beneficial for the government. Gold ETF will replace them. They are a very safe way to fully support, listed, regulate and invest gold, ”he said.