The value of gold is determined in Sarafa Bazaar which is present in the city of lights, Karachi. The rates are mostly the same as Karachi in all the other cities like Lahore, Peshawar, Islamabad, Rawalpindi, Multan, Faisalabad, Quetta, etc.
Gold Rate In Pakistan Listed By Karat
Gold comes in different purities also known as the fineness of gold. We have listed multiple gold purities below with tables populated with the latest prices. There are some other purities as well but they are not that common in the markets, hence not listed here.
24k Gold Rate
24-karat is the purest form of gold on the market. It has the brightest yellow color of all forms. The table below has listed the 24k gold rate in Pakistan today.
22k Gold Rate
22-karat is a less pure form of gold than 24 karats. It is also harder and tougher than the 24-karat form. Below is the list of Today’s 22k gold rate in Pakistan.
21k Gold Rate
21-karat is an even less pure form of gold than the 22-karat. Jewelry making is the most common use of this form. Below is the list of 21k gold rates in Pakistan today.
18k Gold Rate
Of all the other mentioned purities, 18-karat gold is the least pure form. It is not that popular and it also has the darkest color of all the other purities mentioned. The 18k gold rate in Pakistan today is listed below.
Advantages Of Gold As An Investment
Gold is one of those assets that can be quickly & easily converted into currency anywhere around the globe. Apart from real cash, the liquidity and universality of gold are unmatched.
Retains Its Value
over the years, the value of gold remains stable and cannot change drastically. The price of gold does not necessarily reflect its value because, whatever its price, gold is a commodity and there is a limited quantity of it, unlike the dollar for example.
Gold is a tangible asset that has a real existence compared to dematerialized shares or if we compare it to crypto-currencies. Gold exists. You can touch it, own it, and physically exchange it. For a Bitcoin, it’s both more complicated and much more virtual!
Hedge against inflation
The value of gold increases, even in times of inflation. As gold is pegged to a price in euros (for example), any increase in the value of this currency will also increase the value of gold and the investment in gold.
Gold is a great diversification tool because there is typically a negative correlation between gold and financial assets. During crises, when financial assets face a downturn, gold prices tend to rise. This is why many experts recommend investing 5-10% of your portfolio in gold. Portfolio diversification minimizes risk and ensures you can better handle volatility.
This metal has no expiration date, that is, due to its chemical characteristics, it never rusts or corrodes over time, like other metals. Therefore, its value does not depreciate.
Factors That Affect The Gold Price In Pakistan
The same factors that affect other commodities, can in many ways, influence the price of gold in Pakistan. However, its high popularity and store of value imply exposure to higher profits as well as losses.
The key factors that affect the price of gold are:
When a currency experiences higher than normal inflation, traders may prefer to direct their money towards Gold as it is relatively stable and has held its value well historically.
As with other commodities, supply has the power to lower the price of Gold if the market becomes saturated, or raise the price if supply is tight. New gold discoveries increase availability when there may have been a shortage.
Unlike some commodities like Oil and Corn, used Gold doesn’t lose its sellability. If the price goes up, it is more advantageous for miners to mine new Gold. If the price falls, they may not mine as much, resulting in less supply in the market.
The demand for metal in jewelry can trigger the demand for Gold, industrial uses, and trading. If demand is greater than supply, the price may rise. On the other hand, if demand is low and the market is in surplus, the price may go down to attract buyers or it may go up depending on buyer demand.
The US Dollar
Gold is priced in dollars, making the US currency a factor in how attractive gold is to foreign investors. If someone trades Euros, British Pounds, or another currency, a devalued USD can make the commodity more attractive, while a stronger dollar can have an adverse effect.
As a global metal, geopolitical events can affect the supply of this precious metal. Events can also affect the movement of currencies, changing the relative value of gold and potentially causing large numbers of traders to move towards or away from this commodity.
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