During the Diwali festival, many jewellery stores across Dubai experienced a surge in demand, leading to a complete sell-out of gold coins as residents rushed to buy festive gifts.
UAE: Several jewellery shops in Dubai run out of gold coins amid Diwali shopping rush.
Gold bars are showcased at Hatton Garden Metals, a precious metals dealer in London. (Photo: Reuters)
Across Dubai and the wider UAE, demand for gold coins surged during Diwali, leading to a temporary shortage of certain denominations.
Local jewellers reported that smaller gold coins were particularly popular as festive gifts, with sales exceeding last year’s figures — even though gold prices have climbed by more than 50 per cent this year.
“The demand peaked in the days leading up to Diwali, as many customers purchased gold for gifting and Lakshmi Puja,” said Sanjay Jethwani, partner at Meena Jewellers. “Because of this, some coin sizes sold out quicker than we anticipated. Although there was a shortfall of five- and ten-gram coins right after the festival, we had sufficient stock of larger coins and gold bars.”
He noted that this year’s festive enthusiasm highlighted people’s continued trust in gold, valuing it as both a cultural tradition and a secure form of investment. “We anticipate this strong trend to carry on through the wedding season and into the end of the year,” he said.
Vinay Jethwani, partner at Meena Jewellers, mentioned that the demand for gold coins saw a remarkable surge during Diwali. “Gold remains the most favoured and auspicious item to purchase during the festivities — whether for worship, gifting, or investment,” he explained. “This year’s sentiment was particularly positive, with customers purchasing not only jewellery but also coins in various sizes as meaningful festive presents. The demand significantly surpassed last year’s figures,” he added.
He explained that smaller denominations, particularly 5-gram and 10-gram coins, were in the highest demand as they are ideal for festive gifting. “This sharp rise in purchases naturally led to a temporary shortage in supply. However, refineries and distributors have already begun restocking, and availability is steadily improving,” he said.
Gold prices reached an all-time high in the days surrounding Diwali but dropped sharply on Tuesday by 4.5 per cent, settling at $4,142.75 per ounce — down from the earlier rate of $4,381.
Chandu Siroya, owner of Siroya Jewellers, mentioned that there was a temporary shortage of 5-gram and 10-gram gold bars due to limited availability of Swiss bars. “Many people opted to purchase gold coins for investment during Diwali, which seemed a wise choice given the high market prices,” he explained. “The slight dip in supply and brief shortage were mainly driven by strong demand for both gold bullion and jewellery. Buyers expect prices to rise further, with some reports suggesting gold could surpass $5,000 per ounce. This, along with seasonal demand, has encouraged more people to invest in gold,” he told Khaleej Times on Tuesday. Chirag Vora, managing director of Bafleh Jewellers, noted that gold coin sales stayed robust throughout Diwali, although customer preferences and buying patterns have noticeably evolved.
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