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'Won't be surprised if we run out': Tanishq's big statement on gold ahead of Dhanteras
Skyrocketing gold prices fail to deter festive buyers, leading to concerns of shortages. What Tanishq's Ajoy Chawla said.
Despite the skyrocketing prices of gold heading into the festive season, the demand for the precious metal is such that Tanishq says it might just run out of gold coins.
In a conversation with NDTV Profit, Ajoy Chawla, CEO of Titan’s Jewellery Division, said that the festive season has revived consumer interest in gold, even among customers who were waiting for gold prices to fall before making a purchase.
Gold has hit a new record ahead of Dhanteras and Diwali, trading near the ₹1.3 lakh mark per 10 grams in New Delhi. Dhanteras, which marks the first day of the Diwali festival, is considered an extremely auspicious time to buy gold and silver.
“Price of gold is here to stay”
“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,” Ajoy 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.
“...If we run out”
In fact, the demand is such that Chawla says he won’t be surprised if Tanishq cannot meet the demand for gold coins.
He said that people are rushing to buy gold coins and bars, perhaps as an investment.
“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.
Asked about some stores running out of gold bars, the CEO of Titan’s Jewellery Division said: “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.”
ANZ on Thursday forecast gold would reach $4,400 per ounce by the end of 2025, driven by mounting geopolitical, economic, and financial uncertainties alongside expectations of Federal Reserve monetary easing, Reuters reported.
