KARACHI: There is a good news for those interested in buying gold or silver as it prices declined today, ARY News reported.
The prices of gold witnessed a decrease in the local market on Saturday, with the price of 24-karat gold per tola falling by Rs3,600 to settle at Rs465,536, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association.
Similarly, the price of 10 grams of 24-karat gold decreased by Rs3,086 to Rs399,122, whereas 10 grams of 22-karat gold declined by Rs2,829 to Rs365,875.
In the international market, the price of gold fell by $36 to $4,430 per ounce, the association reported.
Silver Prices
Meanwhile, the price of silver per tola decreased by Rs63 to Rs7,098, while the price of 10 grams of silver fell by Rs54 to Rs6,085.
The price of silver in the international market also declined by $0.63 to $66.19 per ounce, the association added.
Both in Pakistan and abroad, gold is purchased as an investment to store its value. Since there is high inflation and variability of Rupee’s value in Pakistan, families rely on gold as commodity to save their money. Unlike cash kept in banks, the value of gold cannot decline within a very short span, also during times of needs one can easily encash gold bars and jewelry for his/her benefits.
The investors all around the world also purchase gold based on this belief – gold ETF, bars, coins, or ETFs are purchased when markets get uncertain, during periods of low interest rates or even during feared recession in general.
“Crisis Insurance” is the key role for gold which holds its value against any form of money, any currency and across the border. Gold also plays a huge part as part of culture and Tradition in Pakistan and around the globe. As stated, gold is extensively used in culture during the occasion of marriage, Eid, and while gifting. Gifts of gold jewelry and coins is very popular while gifting, parents gift gold jewelry to their daughters as it would be taken along at time of their marriage and later used as asset by next generation.
It is also considered as part of property and luxury.
Culturally, the reason for purchasing gold varies by region but same as Pakistan, most commonly gold is purchased in Indian subcontinent, the Middle East and South East Asia for events of festivals, weddings or used as dowry and heirlooms. Western nations do have its cultural angle too, while purchasing golden jewelry during anniversary, birthdays etc. But its influence is rather more focused to the jewelry fashion instead for other valuable factors for use.
Gold is also bought as a financial product and an investment asset. The investment reason for buying 24K gold bar and coins from goldsmiths in Pakistan and also globally due to its ease of holding at home, portability, inapplicability to the stock markets and the banking sector. Global investors buy gold to create a well-diversified portfolios, since its behavior tends to have a negative correlation with equity-market indices.
Central banks hold it also as reserve as it cannot fluctuate like the other markets.
And to add further, gold is lightweight, portable as well as easy to transfer from one territory to another while emigrating from their native land as an asset to use abroad and also to transfer to home country, this characteristic favors buying of goldbars.
