Gold coins saw tremendous demand across Dubai and the UAE during Diwali, resulting in a short-term shortage of some coins.

Jewellers in Dubai said demand for smaller sized coins was exceptionally high for gifting during the festival - surpassing last year - despite gold rallying over 50 per cent this year.

“The rush was especially strong in the last few days before Diwali, when most customers prefer buying for gifting and Lakshmi puja. As a result, certain weights of coins sold out faster than expected. While we did experience a brief shortage in five and 10-gram coins immediately after the festival, larger denominations and bars remained well-stocked,” said Sanjay Jethwani, partner at Meena Jewellers.

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He added that the festive spirit this year clearly reflected people's faith in gold as both a traditional and safe investment.“We expect the strong momentum to continue through the wedding and year-end season.”

Vinay Jethwani, Partner at Meena Jewellers, said there was an exceptional rise in demand for gold coins during Diwali.“Gold continues to be the most auspicious purchase during the festive season, especially for pooja, gifting, and investment purposes. The sentiment was very strong this year - customers were buying not just jewellery but also coins in multiple denominations as symbolic festive gifts. The demand far exceeded last year's numbers,” he added.

He elaborated that smaller coins such as 5-gram and 10-gram pieces were the most sought-after, as they make perfect festive gifts.“Naturally, this sudden surge in buying created a short-term shortage in the market. However, suppliers and refineries are already replenishing stocks, and availability is quickly improving,” he added.

Gold prices hit a record high ahead of and during Diwali, but plunged late on Tuesday by 4.5 per cent, trading at $4,142.75 per ounce, down from $4,381 per ounce earlier.

Echoing his industry peers, Chandu Siroya, owner of Siroya Jewellers, said there was a brief shortage of five and 10 gram bars as the Swiss bars were in short supply.“People were buying a lot of gold coins for investment during Diwali as it made very good sense amidst high prices. There was a little bit less supply and a brief shortage because there is a surge in demand for the gold bullion and also jewellery, because people are expecting gold to go higher as some report says that gold is going to cross $5,000 per ounce, so that is why everybody is buying gold. Also, seasonal demand was a driving factor,” he told Khaleej Times in an interview on Tuesday.

Chirag Vora, managing director of Bafleh Jewellers, also confirmed that the demand for gold coins during Diwali remained quite strong, though consumer behavior has shifted significantly.

“We saw a sharp spike in gold coin purchases in the lead-up to Dhanteras and across the Diwali weekend. Many clients chose coins as auspicious buys and gifting options, especially 24K coins. Buyers have become noticeably more price-conscious, particularly with gold reaching record-high levels... Some weights and popular hallmark brands were temporarily tight immediately after the holiday due to the sudden surge. However, we wouldn't characterise it as a shortage, but rather a mismatch between the types of products in demand and inventory availability,” Vora said, adding that Diwali and Dhanteras always create a demand; this year it was heavier than usual, with more buyers opting for coins over jewellery to control making charges.

He noted that they have maintained reasonable stock across all weights, but they had to adjust order patterns to ensure there is an adequate supply of the lower-denomination coins that customers are actively seeking right now.“We occasionally run low right after peak days, but we prioritize rapid restock.”

Shamlal Ahamed, managing director for international operations, Malabar Gold & Diamonds, said they had anticipated the strong demand for gold coins during Diwali and Dhanteras and were able to seamlessly meet every customer's needs.

Anil Dhanak, managing director of Kanz Jewels, said many customers preferred buying coins as auspicious gifts and for traditional reasons, while investors focused more on larger bars and biscuits.

Dhanak denied that there is a shortage of gold coins in the market.“The coins, which are round in shape and come in 22K gold, are still available in good quantities. However, there has been a temporary shortage of investment bars and biscuits, which are rectangular in shape and come in 24K gold, due to heavy festive demand... There is no shortage of gold coins. Only big-size investment bars of 50 grams and 100 grams in 24K gold are in limited supply due to high festive demand, while smaller bars are still available,” Dhanak concluded.

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