Titan expects to pay more to source gold from bullion banks as supply shrinks

Jewellers such as Titan, which owns the Tanishq and CaratLane brands, lease gold from bullion banks, which import the metal, to avoid inventory risks due to fluctuations in the prices of the yellow metal. Global bullion banks are flying gold into the U.S. from trading hubs catering to Asian consumers to capitalize on the unusually high premium that U.S. gold futures are enjoying over spot prices , according to a Reuters report.

Worries over U.S. import tariffs planned by President Donald Trump have driven gold delivered to Comex-approved warehouses to highest since July 2022. “Gold moved from the London market to Comex because of anticipated tariffs. Suddenly, there is a gold shortage in the last week, and gold metal loan interest rates are also fluid,” Ajoy Chawla, CEO of Titan’s Jewellery division.

The initial indications are that the rates on gold leasing could go up without giving the quantum of the rise it expects to see from current 1.5%-2%.