"We're Seeing A Run On Gold": Tanishq Warns Of Coins Shortage Ahead Of Dhanteras

Despite soaring gold prices, demand for the precious metal is surging ahead of the festive season. According to Ajoy Chawla, CEO of Titan's Jewellery Division, Tanishq may run out of gold coins due to high demand. Notably, Tanishq has seen a surge in jewellery demand heading into Dhanteras and Diwali, despite gold prices hitting Rs 1,30,000 per 10 gm.

In a conversation with NDTV Profit, Chawla noted that the festive season has sparked consumer interest, with buyers jumping into the market despite waiting for price drops.

"Volume growth has started coming in after the start of the festive season. Until Navratra, we saw a lot of customers stay away, and therefore, volume growth was not visible," Chawla told NDTV Profit. "But now that people have realised that the price of gold is here to stay and is going up, all those fence-sitters have started coming back. The sentiment is clearly back," he added.

Gold prices have hit a record high of Rs 1.30 lakh per 10 grams ahead of the festive season. However, instead of deterring buyers, the soaring prices seem to be fueling the Fear of Missing Out (FOMO) sentiment, according to Chawla.

He noted that there's a surge in demand for gold, particularly for coins and bars, likely due to investment and FOMO. He believes people are buying gold expecting prices to rise further. Regarding reports of stores running out of stock, Chawla stated they were well-prepared to meet demand but wouldn't be surprised if stocks depleted.

"There is a bullion shortage in the country. We have planned for it adequately, but I won't be surprised if we run out of coins. There is a worry among customers that there may be a shortage of gold," Chawla added.

Gold Demand Ahead of Dhanteras

Gold demand typically spikes ahead of Dhanteras, as it is considered highly auspicious to buy gold, silver, or other valuables on this day. This surge is driven by cultural beliefs, festive gifting traditions, and investment motives.

Jewellery stores often report higher footfall, with buyers opting for coins, bars, and ornaments. Analysts expect gold sales to rise even further in 2025, despite high prices, due to strong consumer sentiment, wedding season overlap, and stable income levels. 

Gold Rate Today: October 16

Gold is widely regarded as a reliable hedge against inflation. Among its forms, 24-carat gold is the purest and most expensive, commonly chosen for investment. 22-carat and 18-carat gold, containing alloy mixtures for added strength, are typically used in making jewellery.

As of today, gold prices remain stable:  

• 24-carat gold is priced at Rs 12,944 per gram  
• 22-carat gold is at Rs 11,865 per gram  
• 18-carat gold stands at Rs 9,708 per gram