Gold Price in Pakistan
- Today’s gold rates in Pakistan 2021
What is the gold price in Pakistan?
Daily New Price Of Gold In Pakistan Accurate Price In Rupees With A Live Charter.
Iternational gold prices hit a record high this happens as tensions across the world grow because of the coronavirus and greater economic turbulence.
We try to break down gold pricing in Pakistan understand how the precious metal is priced what are the impacts of such sharp price increases in its value.
The reasons are for these record price highs explain to break down for the how gold pricing works and how is it unique we know gold prices are determined by supply and demand typically China and Pakistan are the big places where the demand is very high. We were importing about 800 to 900 tons of gold every year till the pandemic hit us and the prices of gold have risen similarly China has also been importing a lot of good.
So prices in Pakistan are determined by international prices and those are determined by demand and supply factors. Now in the recent period the demand has gone up because whenever there is uncertainty what happens is that people go to safe haven and today the corona pandemic has created massive uncertainty our trade has also created a lot of uncertainty because of the trade war that’s taking place.
There’s deglobalization we don’t know which way the economy is returned what will happen to the imports and the exports of the economy so there’s a lot of uncertainty in the global markets and that’s why people are moving to the safe haven of gold so that’s the reason that demand is increased whereas the supply remains very low it’s based on the mining in the big country like south Africa Russia and so on so that doesn’t change very much and therefore what happens is the price changes as the demand goes up.
That’s why we see the spike in Gold prices in Pakistan that is taking place now right.
How supply is remaining constant throughout the years but before mentioned is the price of the trade war that is happening between the U.S and China how that’s creating greater uncertainty it just expand a little more how that relates to gold and why people consider it such a safe bet typically what we used to have earlier the commodity money and when we have commodity money we hold a commodity and gold is a precious metal so by holding small amounts of it you can hold a large amount of value so that’s why gold has been seen as an alternative to money.
As such so whenever there’s uncertainty because of that the trade war this has been the trade war was started last year even the year before between china and the U.S.
U.S has been accusing china of manipulating trade that keeping its currency down.So the U.S has been putting levies and china was responding to that there’s some agreement between the two in january that’s now completely broken down because of the pandemic the U.S has been accusing that china has deliberately spread the virus and what did not take action in time now whatever be the truth of it the point is that we know as a result. A lot of restrictions have taken place even in India the chinese goods and the chinese contracts etc there’s been restrictions pulled so various countries are acting against china and what it will do is in a sense de-globalized because supply chains have become very long they were you know centered in china.
Latest Gold Rates in Pakistan [PKR]
So as soon as the pandemic hit supply chain started getting distorted and when that happened production in various major economies started getting impacted.
In india also we noticed an impact because 80 percent of In india raw material for medicines come from china so as soon as there were this disruption in the supply chain we also saw medical medicine prices etc rise in india.
So in a sense various countries are now trying to say that we should shorten supply chain we should start producing more in their own country. Pakistan is also planning to do that under a plan which means self-reliant so Pakistan is saying that Pakistani companies should start producing more will import less from World.
So this is a kind of a trade problem that has taken place between various nations and therefore there’s a lot of uncertainty in the global market and that’s resulting in people moving to safe haven dollar is one safe haven but the gold is even more considered to be a safe haven.
The supply aspect of gold here how only a couple of mines exist there isn’t enough incentive for other miners to go in and explore for more gold. In western Australia which is a mining state and we’re on the indian ocean side of Australia and the mining community has maintained its output during the covert crisis it didn’t have to stop and Gold was one of the big export items we have the biggest gold mine in kalgoorlie in the world and 10 other mines we also export a lot of iron ore of aluminium these are big export items.
The demand in the economy went down the price of gold went up so they started producing more gold and they’re very sensitive to that they can wind it up or wind it down depending on the economy, and so over the last 120 years that we’ve been producing gold it goes up and down in its production depending on the world’s price and right now the world price is really firing high and so they’re churning it out as quick as they can because it’s a very good market right so adding these price spikes there will be a greater more aggressive.
Towards going and trying to find more gold gold here that has always been one of the main concerns that there just isn’t enough profit margin for you to go out and explore for more options yes we’ve had enough when the price goes right down we still there’s still enough of a margin for our gold miners to keep working.
They slow down they try to save so that they can get by because they know it’s going to go back up again that’s one thing you can guarantee is the world will have troubles there will be uncertainty again and the price of gold will go up governments buy it as well as people of course in order to keep resilience in their system.
There is a move to start up again some of the small gold mines that have been just waiting for that opportunity.
So you do find that and there’s even people going out prospecting they have little devices that they wander around the bush looking for gold and it beeps at them and they get a bit of gold.
They’re all out there trying to get a bit more gold because it’s really worthwhile right i’d point there jumping back to.
The gold prices in Pakistan rising really is the cause for such a steep and such a fast pace at which they’re rising it seems like every day there is quite a significant jump this unprecedented in times of uncertainty for instance when the afghanistan crisis came up in 1979 and 80 that time also gold prices shot up very dramatically so what what it shows is that you see a supply of gold being limited you know if people move into one asset that asset price rises.
Nowadays the currencies are not linked to gold like till 1971 there was a gold backing of the dollar when De Gaulle sent started sending gold to fort knox it was taken off.
When you go to the to the American central bank and ask them for dollars for gold they’ll only give you more dollars so given that gold is limited in supply and the demand have suddenly risen and why the demand visit.
Uncertainty has increased this uncertainty is because what will happen. the pandemic of which assets will fall for instance the stock market fell dramatically in march we don’t know whether there’ll be a second round where the production will be again affected adversely and if that happens then you know people will move to assets which are safe because the stock market can again decline.
All these uncertainties that are there these are the assets that is what is driving the demand for gold and that’s why it’s not the consumers who are consuming more in Pakistan the sales of gold in the retail have declined but obviously it is people who are holding gold as a safe haven so even if a small increase in demand takes place because of uncertainty the gold prices will rise quite substantially. The consumer is consuming less but the investors are investing more into it and that’s why the demand for gold has gone up very substantially and every day of price rise in gold.