Gold price goes up by Rs100 per tola

Spike in price impacts sale, purchase; alters investment trend

The price of 24 karat per tola gold witnessed an increase of Rs100 on Monday, selling at Rs156,000 against its sale price of Rs155,900, the previous day. The price of 10 gram 24 karat also increased by Rs 84 and was sold at Rs133,744 against Rs133,660; whereas that of 10 gram 22 karat went up to Rs122,600 against its sale at Rs122,52, All Sindh Sarafa Jewellers Association reported. The price of per tola and ten gram silver remained constant at Rs1680 and Rs1,440.32 respectively. The price of gold in the international market decreased by $14 and was traded at 1,757 against its sale at $1,771 the previous day, the association reported.

The increase in gold prices owing to internationally induced inflation has not only impacted the sale and purchase of gold-made jewelry but also compelled people to opt for other modes of investments. Gold always remained a favorite saving option for investment purposes, especially for the people belonging to the middle class which they use to transfer to the next generation as a means of the asset. The purchase of small gold bars or ornaments with the idea to save money for the difficult time was an old practice for most people.

However, the recent spike in gold prices has changed the investment trend as the majority is considering investing in the property sector being the right choice for investment keeping in view the bright future of the industry. Jamil Ahmad, a real estate business owner said that real estate investment is a highly suitable option right now in terms of profit and reliability which also offers a substantial profit margin. He said that easy installment plans offered by the housing schemes, day-by-day growing property market, low-risk factors and high returns are the main factors that attract investors to buy property instead of other saving or investment options like gold. He said that whether residential or commercial, real estate has the potential to generate more profit for investors in various forms including monthly rentals in cash which gold investments cannot offer.

Muhammad Anees, a gold businessman was of the view that property is a good option for investment but gold is always considered as in-hand cash which can be utilized immediately at the time of need. He said that although now the trend of investing in gold was decreasing however a large number of people still prefer to invest in gold for saving purposes. Another gold trader, Muhammad Ashraf said that real estate investment is ideal for long-term investment which provides better returns than gold but at the same time real estate offers less liquidity as compared to gold. He said women used to save money from their daily spending and purchase small chunks of gold depending upon their savings. These small ornaments can be used as jewelry and also serves the purpose of saving at the same time, he added. Shazia Khatoon, a buyer at a gold shop said that she use to save a little amount from daily groceries, utilities and later use that money to purchase small chunks of gold for saving purposes.

She said that keeping in view the nominal returns from gold savings now; I have invested in a housing scheme with the same savings whose value is more rapidly increasing than gold. Gaffar Ahmed, an owner of a private housing scheme told that a few years back when the option of the installment was not available, people used to buy gold for saving purposes but the attractive investment plans offered by different housing schemes have changed the investment behavior of the people. “Owning a house is the dream of everyone and the lean investment plans offered by the housing authorities are providing opportunities to the low-income people to invest in the sector and realize the dream of their own home”, he said. He added that nowadays, the value of the property was increasing day by day and investment in the real estate sector is a more stable option as compared to gold as it secures your future as well as gives more returns.

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