Gold demand has slumped 60% as high prices push buyers toward silver
Gold is selling at steep discounts in local markets in Pakistan as soaring prices and shrinking purchasing power dampen demand, pushing buyers toward silver, traders said.
Abdullah Chand, President of the Society Jewelers Welfare Association - Tariq Road, said gold is being sold at discounts of up to PKR 20,000 per tola, with the current market price at PKR 493,662 per tola. “If demand were normal, prices would have crossed PKR 500,000 per tola,” he said.
Demand for gold has fallen nearly 60% over the past six months, he added.
In contrast, silver demand has more than doubled over the same period. Market sources said silver, which traded around PKR 3,500 per tola around eight months ago, is now selling for up to PKR 13,000 per tola, including a premium of about PKR 2,000.
Abdullah said consumers — especially for weddings and jewelry — are increasingly opting for silver due to its affordability. He added that locally produced silver bars meeting international standards have boosted investor confidence, attracting buyers seeking lower-cost investment alternatives.
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