KARACHI: Improved security conditions in Pakistan have pushed gold’s consumer demand significantly up by 13 percent in first quarter of 2016 as compared to same period of last year.
According to statistics on global gold demand released by the World Gold Council (WGC) on Thursday, gold’s consumer demand in Pakistan clocked up at 9.4 tonnes while it was 8.4 tonnes in corresponding period of previous year. Similarly, the demand remained on upward trajectory in last quarter of year 2015 to 10.5 tonnes while total consumer demand in year 2015 stood at 37.6 tonnes. It can be anticipated that the consumer demand in 2016 may be crossed 40 tonnes, which would be highest ever demand in recent years in Pakistan.
Meanwhile, the gold bars and coins grabbed investors’ attention again in the first quarter of this year as the demand of the gold bars and coins too went up by 11 percent, clocking up at 3.4 tonnes in the said period as compared to 3.1 tonnes in similar period of 2015.
Among total consumer demand, jewellery demand in Pakistan jacked up by 13 percent as Pakistani women bought 3 tonnes jewellery in first three months of this year while it was 5.3 tonnes in same period of last year. In 2015, Pakistani nation consumed total 23.2 tonnes jewellery.
A continuous declining trend in jewellery demand in Pakistan owing to higher international gold prices and poor law and order situation has been mitigated in the recent period as the gold demand saw massive growth again mainly driven by improved security conditions and stable international gold prices, said All Pakistan Gold Welfare Association Chairman Muahammad Arshad. Seasonal growth in demand of jewellery due to wedding time also supported the overall consumer demand in Pakistan, he added.
He said country’s biggest gold market, Karachi has been witnessing notable progress in trade activities due to security forces operation in the city against criminal elements, as gold business in the city has been on revival amid decreasing ratio of street crimes.
He said gold exports are also increasing this year as the government’s stern action against smuggling has supported legal gold export, which has been on rise. Currently, only 21-carat gold is being exported from Pakistan to other countries.
He said gold is always been a fine choice for investment purpose, investors seem to reshift their interest towards gold considering better profit margins and anticipated surge in international gold prices this year. Arshad was of the view that the international gold price may hit $1,352 per ounce by the end of year.