KARACHI: Amid cooling real estate markets, a volatile stock exchange, and a weakening rupee, Pakistanis are flocking to an unexpected safe haven: gold. In Karachi’s Sarafa Bazaar, traders, speculators, and ordinary investors are buying bullion at record levels, driven by economic uncertainty and global price surges.
Spot gold prices recently crossed $4,300 per ounce internationally, pushing domestic rates to between Rs451,420 and Rs456,900 per tola. Analysts say rising geopolitical tensions, expectations of US Federal Reserve rate cuts, and diminishing confidence in the US dollar have fueled demand for gold as a hedge. “About half a century ago, I sold gold worth Rs240 per tola. Its value has consistently outperformed other assets,” said Qasim Shikarpuri, president of the All Pakistan Sarafa Gems and Jewellers Association.
Read More: Gold price rises by Rs 7,900 per tola
Investors in Pakistan are drawn to gold not just for its financial security but also for its liquidity and cultural appeal. In Karachi alone, 8,000–10,000 tolas are traded daily, with sectors like rice and apparel increasingly converting cash into gold amid limited investment opportunities. “Never in my life have I seen gold rise by $100 a day,” said Shikarpuri.
Trading occurs through formal channels such as the Karachi Bullion Exchange, ARY Gold, and the Pakistan Mercantile Exchange (PMEX), as well as informal avenues like jewellery shops. While PMEX offers a regulated platform, many investors prefer direct bullion purchases due to lower costs, easier access, and minimal documentation requirements.
Read More: Pakistan’s unrelenting foe: Climate change tightens its grip
The growing rush to gold underscores Pakistanis’ instinctive drive to preserve value in uncertain economic times. Despite occasional price dips, gold continues to shine as a preferred store of wealth in a country where conventional investment options remain risky.