In Pakistan, gold price rollercoaster pushes buyers to silver

Lahore, Pakistan – Over the past two weeks, as the global prices of gold and silver have fluctuated wildly, Waqas Siddiqi has received a flurry of calls from customers to his jewellery store, inquiring about purchases.

As in other countries, the recent rise, decline and rise again in the global bullion market has piqued interest, particularly for those who view gold and silver as an investment.

While gold – and to a lesser extent, silver – has long been a favourite among jewellery buyers in Pakistan, it is a safe place to keep their money that many buyers are seeking these days. And silver appears to be overtaking gold.

“We are primarily in the jewellery business, which is in decline anyway, as people are using precious metals for investment. So, when the rallying started, a few customers came to our shop showing interest to buy silver bars or sell gold,” he told media.

This trend was confirmed by Omer Ehsan, another jeweller who has been running his family business in Lahore for decades. Increasingly, he says, the trend in gold investments – and, moreso in silver – is increasing.

“My customers called to inquire whether they should invest in and join the rally, but [I] advised them caution,” he told media, pointing to a decline in prices last week, before a sudden rally in the past two days.

In the domestic market, the price for 10gm gold increased by more than 20,000 rupees ($71) to reach 440,000 ($1,572) on Wednesday. A similar rise was seen in the price of silver, with 10gm silver reaching 7,800 rupees ($28).

The initial dip, followed by a recovery, reflects broader movements in the international market, where a bullish run on the precious metals ended the previous weekend, and prices fell drastically – an unusual phenomenon as the metals are considered “safe havens” which hold their value in turbulent times.

Hanif Chand, a 56-year-old jeweller in Karachi and also the former vice president of the city’s jewellery association, told media that the recent upheaval in the bullion market has been driven primarily by fears that an attack on Iran by the United States was imminent, leading to panic in the market.