'Won’t be surprised if we run out of coins': Tanishq warns of gold shortage as demand surges across India

Ajoy Chawla noted that the spike in buying was not limited to ornaments but extended to investment-related products such as gold coins and bars.

As gold prices reached unprecedented highs ahead of Dhanteras and Diwali, jewellery retailer Tanishq reported an unexpected surge in customer demand, with its top executive warning that the company could soon run short of gold coins.

Speaking to NDTV Profit, Ajoy Chawla, Chief Executive Officer of Titan’s Jewellery Division, said that the festive period had rekindled enthusiasm for gold purchases, even among customers who had previously postponed buying in anticipation of a price correction.

“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 said.

“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 in New Delhi climbed close to Rs 1.3 lakh per 10 grams, marking a new record. Dhanteras, which marks the beginning of the Diwali celebrations, is traditionally considered an auspicious time to buy gold and silver, with jewellery and coin purchases peaking during this period.

Chawla noted that the spike in buying was not limited to ornaments but extended to investment-related products such as gold coins and bars.

“We’re seeing a run on gold, especially on coins and bars — maybe because of investment or FOMO. People are thinking gold prices will go up further,” he said.

He added that while Tanishq had prepared for strong seasonal demand, supply constraints in the bullion market could still pose challenges.

“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 remarked.

According to Reuters, analysts at ANZ projected that global gold prices could reach $4,400 per ounce by the end of 2025, citing growing geopolitical tensions, economic instability, and expectations of monetary easing by the US Federal Reserve.