Gold Coins in High Demand During Diwali in UAE

Gold coins experienced soaring demand across Dubai and the UAE during Diwali, creating a temporary shortage of some coins.

Dubai jewellers noted that demand for smaller coins was exceptionally high for gifting during the festival, surpassing last year’s numbers, despite gold prices rising over 50% this year.

“The rush was particularly intense in the days leading up to Diwali, when customers mostly buy for gifting and Lakshmi puja. Consequently, some coin weights sold out faster than anticipated. Although we faced a brief shortage of five and 10-gram coins right after the festival, larger denominations and bars remained well-stocked,” explained Sanjay Jethwani, a partner at Meena Jewellers.

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He added that this year’s festive spirit clearly demonstrated people’s trust in gold as both a traditional and secure investment. “We anticipate the strong momentum to continue through the wedding and year-end season.”

Vinay Jethwani, another partner at Meena Jewellers, remarked on the exceptional rise in demand for gold coins during Diwali. “Gold remains the most auspicious purchase during the festival season, especially for pooja, gifting, and investment purposes. The sentiment was very strong this year—customers were purchasing not just jewellery but also coins in various denominations as symbolic festive gifts. The demand far exceeded last year’s figures,” he noted.

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

Gold prices hit a record high before and during Diwali but dropped late Tuesday by 4.5%, trading at $4,142.75 per ounce, down from $4,381 per ounce earlier.

Chandu Siroya, owner of Siroya Jewellers, echoed his industry peers, mentioning a brief shortage of five and 10 gram bars, as Swiss bars were in limited supply. “There was significant buying of gold coins for investment during Diwali due to high prices. This led to a brief shortage as both gold bullion and jewellery saw increased demand, with expectations that gold prices might exceed $5,000 per ounce,” he told Khaleej Times in an interview on Tuesday.

Choosing Coins Over Jewellery

Chirag Vora, managing director of Bafleh Jewellers, confirmed that the demand for gold coins during Diwali remained robust, although consumer behavior has notably shifted.

“We witnessed a sharp rise in gold coin purchases leading up to Dhanteras and during the Diwali weekend. Many clients opted for coins as auspicious purchases and gifts, especially 24K coins. Buyers have become noticeably more price-conscious with gold reaching record highs. Some weights and popular hallmark brands were temporarily tight immediately after the holiday due to the sudden surge. However, it was more about a mismatch between product demand and inventory availability rather than a shortage,” Vora said, adding that Diwali and Dhanteras always spur demand; this year, it was heavier than usual, with more buyers choosing coins over jewellery to avoid making charges.

He noted that they maintained reasonable stock across all weights, adjusting order patterns to ensure adequate supply of the lower-denomination coins that customers currently seek. “We occasionally run low right after peak days, but we prioritize rapid restocking.”

Shamlal Ahamed, managing director for international operations at Malabar Gold & Diamonds, said they had anticipated strong demand for gold coins during Diwali and Dhanteras, successfully meeting customer needs.

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

Dhanak refuted claims of a gold coin shortage. “Round 22K gold coins are still available in good quantities. However, there has been a temporary shortage of investment bars and biscuits, which are rectangular and 24K gold, due to high festive demand. There is no shortage of gold coins—only larger 50-gram and 100-gram investment bars in 24K gold are in limited supply due to high festive demand, while smaller bars are still available,” Dhanak concluded.