Gold Rate is a term that’s often thrown around without much understanding. In this article, we will provide you with 10 things you need to know about gold rate in Pakistan. From the current trends to the future of gold, read on to gain a better understanding of this important topic.
What is Gold Rate?
Gold Rate in Pakistan tells the current market price of gold in Pakistan Rupees, which fluctuates with the global market prices. Gold rate is also used as a benchmarking tool for other precious metals.
The value of a currency is determined by its purchasing power relative to other currencies. The Pakistani rupee had lost about two-thirds of its value against the US dollar since December 2008, when it was worth about Rs178 per US$. On January 06, 2016, the rupee was trading at Rs166.85 per US$.
The Different Types of Gold Rate
Gold is an effective means of preserving wealth and has been used as a form of currency for centuries. In Pakistan, gold rates vary depending on the type of gold.
Gold coins and bars are the most common form of gold in Pakistan. The price per gram for gold coins and bars is determined by supply and demand. The government sets the price for these products, which can be volatile.
The price per gram for gold nuggets is more stable, but prices also tend to increase when there is a shortage or when there is speculation about the future value of the metal. Gold nuggets are not widely available in Pakistan and are mainly exported to other countries.
Pros and Cons of Gold Rate
Gold rates in Pakistan are currently quite high and it may be a better idea to find another investment option at this time. There are many pros and cons to consider before making the decision to invest in gold.
Pros of Investing in Gold:
-Gold is a valuable asset that has been used for centuries as a form of currency and store of value.
-Gold is not subject to inflation, meaning its purchasing power will not decrease over time.
-There is no official government or bank backing for gold, so it is not subject to political or financial instability.
-Gold can be stored safely away from public view.
-The price of gold can rise and fall, however, its value as an investment remains constant.
-Gold prices tend to move slowly relative to other investments, providing investors with greater stability over long periods of time.
Cons of Investing in Gold:
-Gold is not easy to sell or trade, so there may be higher fees associated with selling or trading gold than with other investments.
-Gold does not offer guaranteed returns; it can decline in value as well as increase in value.
-Investors may need to wait several months or even years for their investment in gold to appreciate significantly.
Pakistani Gold Rate History
Pakistan’s gold rate history can be traced back to the time when Pakistan was still a British colony. At that time, the British currency was backed by gold, and the Pakistani rupee was pegged at 1 Pound Sterling = 2.40 Pakistani Rupees. In 1948, Pakistan became an independent country and the British pound ceased to be legal tender. As a result, the peg between the Pakistani rupee and the British pound was scrapped and the rupee started to float against other currencies. The Pakistani rupee remained tied to the American dollar until 1971 when it was devalued against the US dollar by 40%. Since then, Pakistan has experienced several bouts of inflation; therefore, its gold rate has also been affected.
Today, Pakistan’s gold rate is linked to three currencies – the US dollar, British pound, and euro – through a basket of currencies called the Special Drawing Rights (SDR). The SDR is managed by the IMF and its value is based on a weighted average of world economic indicators. As of May 2018, Pakistan’s gold rate stood at Rs1,236/ounce (from Rs1,221/ounce in 2017).
It’s no secret that Pakistan is one of the most precious mining countries in the world. With so much potential, it’s important to be knowledgeable about the current gold rate in Pakistan and what you need to do to ensure you’re getting a good deal. In this article, we’ll discuss some of the key points you need to know about gold rates in Pakistan as well as some advice on how to get the best possible deal when investing in gold there. So read on for all the info you need on gold prices in Pakistan!