Gold Leasing Rates Surge Amid Global Supply Crunch
Gold’s role as a financial asset has taken an interesting turn in 2025, with leasing rates soaring due to a tightening global supply. India, one of the world’s largest gold-consuming nations, is witnessing a sharp rise in gold lease rates, signaling increased demand and constrained availability.
Gold Leasing Rates Hit Multi-Year Highs
Recent data shows that gold lease rates in India have surged to over 4%, a level not seen in years. This spike is primarily due to supply constraints as central banks continue accumulating gold while mining production remains limited. The impact is being felt across the market, with traders and jewelers paying higher premiums to lease gold.
Key factors driving the rise:
Central Bank Demand: Global central banks purchased 1,037 metric tons of gold in 2023, adding to the ongoing supply crunch.
Import Restrictions in India: India’s gold imports have been affected by tightening regulations and currency fluctuations, further straining supply.
Mining Challenges: Gold mining output remains relatively stagnant, leading to limited fresh supply entering the market.
What This Means for Investors
Rising gold lease rates indicate that gold’s scarcity is becoming a more pressing issue. While physical gold remains a safe-haven asset, the leasing market reflects underlying supply-demand imbalances that could push gold prices even higher.
Silver’s Potential as an Alternative Investment
With gold supply under pressure, investors are increasingly looking at silver as an alternative. Silver has gained 10% year-to-date, fueled by industrial demand from the solar energy and electric vehicle sectors. As gold lease rates rise, silver’s affordability and investment potential become even more attractive.
Odiot Holding: A Legacy in Precious Metals
Since the 17th century, Odiot has been synonymous with excellence in gold and silver craftsmanship. While gold faces supply challenges, silver’s unique blend of investment value and artistry remains a compelling opportunity. At Odiot Holding, we continue to honor this heritage by offering expertise in luxury silver acquisitions and insights into the evolving precious metals market.
📌 Source: Adapted from Investing.com