During Diwali, some Dubai jewellery stores experienced high demand for gold coins, leading to sold-out stock as customers rushed to purchase for celebrations and investments.
UAE: Certain Dubai jewellery shops run out of gold coins this Diwali season
Gold bullion on display at Hatton Garden Metals in London. Photo: Reuters
Gold coins witnessed a remarkable surge in demand across Dubai and the UAE during the Diwali season, leading to a temporary shortage in some varieties.
Jewellery retailers in Dubai reported that smaller coins were particularly popular as festive gifts, with demand exceeding last year’s figures — even amid a 50 per cent surge in gold prices this year.
“The buying momentum peaked in the days leading up to Diwali, as most customers purchased for gifting and Lakshmi puja. Consequently, select weights sold out faster than anticipated. We faced a shortfall in five- and ten-gram coins right after Diwali, though larger coins and bars remained available,” said Sanjay Jethwani, partner at Meena Jewellers.
Gold Demand Surges During Diwali
He noted that this year’s festive mood clearly demonstrated people’s continued trust in gold as both a cultural symbol and a secure investment. “We anticipate this strong buying trend to carry forward into the upcoming wedding and year-end season.”
Vinay Jethwani, Partner at Meena Jewellers, observed a remarkable increase in demand for gold coins during Diwali. “Gold remains the most favoured purchase during the festive season — ideal for pooja rituals, gifts, and long-term investments. The enthusiasm this year was exceptional, with customers buying not only jewellery but also multiple gold coins in different weights as meaningful festive presents. Overall, sales far surpassed last year’s performance,” he stated.
He explained that smaller coins, particularly 5-gram and 10-gram ones, were in highest demand due to their suitability as festive gifts. “This sudden spike in buying caused a temporary shortage in supply, but refineries and suppliers are already restocking, and availability is improving steadily,” he added.
Gold prices reached an all-time high just before and during Diwali but dropped sharply by 4.5 per cent on Tuesday, settling at $4,142.75 per ounce — down from the earlier peak of $4,381 per ounce.
Chandu Siroya
Supporting the views of other jewellers, Chandu Siroya, owner of Siroya Jewellers, confirmed a temporary shortage of 5-gram and 10-gram gold bars, mainly due to limited availability of Swiss bars. He noted that many buyers turned to gold coins as a safe investment during Diwali, especially with prices remaining high.
“There was a brief dip in supply because of increased demand for both bullion and jewellery,” he explained. “Many believe gold prices could surpass $5,000 per ounce, prompting strong buying activity. The festive and wedding season also contributed significantly to this surge,” Siroya told Khaleej Times on Tuesday.
Choosing coins instead of ornaments
Chirag Vora, Managing Director of Bafleh Jewellers, shared that gold coin demand during Diwali was notably strong, although customer preferences have evolved considerably.
“We witnessed a substantial increase in gold coin purchases ahead of Dhanteras and throughout the Diwali celebrations. Many buyers preferred coins for auspicious purchases and festive gifting, particularly 24K coins. With gold prices at record highs, customers are becoming more mindful of pricing. While certain denominations and hallmark brands were briefly unavailable after the festival due to high demand, it wasn’t a shortage — rather an imbalance between what buyers wanted and existing stock,” said Vora, noting that more people chose coins over jewellery this year to reduce making charges.
He added that the company maintained sufficient inventory across denominations but adjusted its order strategy to meet the high demand for smaller coins. “We occasionally run short right after peak buying days but quickly replenish supplies,” he said.
Similarly, Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds, mentioned that they had anticipated this festive rush and were fully prepared to meet every customer’s requirement efficiently.
Shamlal Ahamed
Anil Dhanak
Dhanak clarified that there is no actual shortage of gold coins in the market. “Round-shaped coins made of 22K gold remain widely available. What we are currently seeing is a temporary shortfall in investment-grade bars and biscuits — the rectangular 24K gold pieces — mainly due to strong festive buying,” he explained.
He further added, “There’s no scarcity of gold coins at all. The limited availability only applies to larger 24K investment bars weighing 50 grams and 100 grams, which have seen a surge in demand this season. Smaller bars, however, continue to be easily accessible in sufficient quantities,” Dhanak said.
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