Rising gold prices: How can ordinary citizens benefit?

ISLAMABAD: After the unprecedented increase in gold prices in the global market, interest in investing in gold is increasing among ordinary citizens in Pakistan as well.

According to experts, gold is traditionally considered a safe investment, especially at a time when inflation, currency depreciation and global political tensions are increasing.

In recent days, the price of gold in the global market has exceeded $ 4,500 per ounce, which is among the highest levels in history.

According to global reports, the major reasons for the increase in the price of gold include a possible reduction in US interest rates, geopolitical conflicts, large-scale purchases by central banks and a trend away from the dollar.

Pakistani investors can invest in gold in various ways. The most common way is to buy physical gold i.e. gold biscuits, bars or coins, which are available from bullion markets and authorized jewelers across the country. Experts say that it is very important to have pure 24-karat gold and an authentic receipt when buying physical gold.

The second method is to purchase gold jewelry, however, experts warn that the immediate profit may be low due to labor and deductions in jewelry, so it is mostly considered better for long-term or personal use.

Internationally, investors also invest through gold ETFs, i.e. exchange-traded funds, but this facility is limited in Pakistan. Some Pakistani investors access gold funds or futures markets through overseas brokerage accounts, but this involves more risks and requires more financial awareness.

According to experts, the price of gold is directly related to the value of the dollar, the global political situation and the policies of central banks. When interest rates are low, the attractiveness of gold increases because gold does not give profit but its value remains preserved.

According to State Bank data, gold is being seen as a strong item in Pakistan even due to fluctuations in the value of the rupee. Economists say that when investing in gold, it is considered a safer strategy to buy in stages rather than investing all the money at once.

Experts also recommend that gold be viewed as a long-term investment rather than a short-term trade, especially for the middle class who want to protect their savings from inflation.