Gold in Pakistan: a guide for savers and traders

What this section covers

Gold in Pakistan is bought for many reasons: jewellery for weddings, savings kept at home, a hedge against a weaker rupee, or short-term trading on price moves. Each reason leads to a different route, and each route has different costs and risks.

This section covers four areas:

• Purity and units. Karat is a measure of gold content. The tola is the local unit, the troy ounce is the international unit, and the gram links the two.
• Physical vs paper gold. You can hold gold as bars, coins or jewellery, or hold a claim on gold through funds, futures or CFDs (contracts for difference, which pay the price change without delivering metal).
• What moves the price. This includes the US dollar, interest rates, inflation, central bank buying, and the PKR exchange rate.
• Costs of each route. These include making charges, dealer spreads, storage, fund fees, and overnight financing on leveraged positions.

Gold price Pakistan and "gold rate today"

The local gold rate starts from the international price, quoted in US dollars per troy ounce. That price is converted into rupees at the current exchange rate and then into tola or gram. Dealers add their own margin, so the rate in a market can differ from a simple conversion.

This site does not publish a live gold rate. To turn an ounce price you have checked into a rupee price per gram or tola, use Gold ounce to PKR/gram or the Gold tola calculator. How Gold Price Is Set explains where the reference prices come from. Spot vs Futures Gold explains why the spot price (for immediate settlement) and futures prices are not the same.

Where a beginner should start

Read the pages in this order:

1. Gold Karats and Purity. This page explains what the karat stamp means and why jewellery and bars differ in gold content.
2. Ounce, Tola and Gram. This page explains how to convert between units without errors.
3. Gold karat calculator. Use it to work out the pure gold content and value of a piece you own or plan to buy.
4. Gold as Investment. This page sets out the advantages and drawbacks of gold investment compared with other kinds of saving.
5. Bars, Coins, Jewellery. This page shows where making charges and resale discounts reduce your value.

Before you buy physical gold, also read Check Gold Purity and Storing Gold Safely.

What an experienced trader will find

Traders who follow XAUUSD (gold priced in US dollars) will find pages on the main price drivers:

• Gold and the Dollar
• Gold and Inflation
• Central Bank Gold

For paper gold, Physical vs Paper Gold compares ownership, counterparty risk and costs. Metals covers gold and silver as trading instruments. Position sizing and margin can be checked with the margin calculator and the swap calculator.

Gold CFDs are leveraged. A small move against your position can wipe out your margin quickly, and you can lose money fast. Pakistani regulators have also addressed offshore platforms. On this point, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. In addition, per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947. Read Law and regulators before you use any such platform.

Local units, tax and zakat

Pakistan-specific topics have their own pages:

• Gold in Pakistan covers tola pricing, local markets and buying practice.
• Payments, tax, Islamic banking covers tax questions.
• The Zakat calculator helps you include gold holdings in your zakat calculation.

Frequent questions

Does this site show today's gold rate in Pakistan?

No. Check a current ounce price from a source you trust, then convert it with Gold ounce to PKR/gram or the Gold tola calculator.

Why is the market rate different from my calculation?

Dealers add a margin, and jewellery carries making charges. The exchange rate a dealer uses may also differ from the rate you used.

Is gold a safe investment?

Gold prices can fall, sometimes for long periods. Gold as Investment sets out the risks and drawbacks, not only the advantages.

What is the difference between physical gold and a gold CFD?

Physical gold is metal you own. A CFD is a leveraged contract on the price change, and you never own any gold. Physical vs Paper Gold compares the two.

Do I need to include gold in zakat?

That depends on your holdings and the rules you follow. The Zakat calculator and Islamic finance pages explain the inputs.