How To Start Gold Investment In Pakistan

1. Define Your Aim And Objectives  

It is necessary to decide the aim and objectives of your investment in gold.

Short-term Investment: If your aim is for short-term investment in gold due to a financial crunch or inflation in the country, invest in gold bars, coins, and jewelry.

Long-term Investment: If you want to get maximum financial gains from your investment in gold, invest in Exchange Trading Funds (ETFs), gold trading stock, buy shares of gold trading companies or you can open a gold account with accredited banks.

2. Decide Your Budget

You must first decide how much money you want to invest in gold after keeping in mind the form and duration of investment. You must consider the profit and loss factor, if the value of gold increases or decreases in the local or international market.

3. Do Detail Market Research

When you decide to invest in gold, do detailed market research. Keep the following questions in mind ;

• When you decide to invest in gold, do detailed market research. Keep the following questions in mind ;
• Which gold trading company is reliable?
• Which bank offers the returns on a gold account?
• Which shares of gold companies are rising in the stock market ?
• What is the latest gold price in the international market?
• What is the recent economic situation in the country?

4. Consult With The Investment Expert

There are many financial experts and companies that provide professional consultancy services for wise investment. You can also take professional advice before investing in gold.

5. Search For A Reliable Gold Dealer

It is advisable to buy gold from reliable and trustable gold dealers and jewelers, who provide the purity certificate. You can also purchase gold from banks and brokers.

There are different kinds of gold investments in Pakistan.

1. Invest In Physical Gold 

The 24-karat gold is the pure form of gold. It is considered the most profitable form of gold investment. The 24-Karat gold bars are available in the gold market. Most people buy these bars having different weights tola, kilo, gram, or ounces for investment. Other forms of investment in gold are coins, ingots, bullions, and gold bricks.

2. Buy Gold Jewelry

Investment in gold jewelry is a very common form of gold investment. In South Asian countries especially in Pakistan and India, women accumulate gold jewelry for wearing and investment as well. At the time of selling the gold jewelry, you will not get a hundred percent profit. It involves the type of gold purity, jewelry-making price, and taxes charges.

3. Gold Exchange-Traded Fund(ETFs)

A gold Exchange and Trading Funds (ETFs) is an indirect form of gold investment. You do not need to buy the physical gold assets. It is present in documentation or electronic form. The purchasing of gold ETFs works like investing in stock exchange companies. It monitors the daily gold rates and shares.

For buying ETFs, you can open a trading account with the brokers or the Pakistan Stock Exchange PSX TREC holders. Some charges are applicable for opening an account and buying and selling ETF shares on behalf of the account holder. But it includes a risk of daily market price shifts.

4. Invest In Gold Fund 

In Pakistan, Al Meezan Limited provides the facility of a gold Investment fund. It is a long-term investment fund , totally protected against all the risks of currency devaluation and inflation in the country. It is designed according to the Islamic Shariah laws under the supervision of renowned Islamic scholars.

5. Buy Shares Of Gold Mining Companies

This is not a common practice in Pakistan. But in the western countries like Europe and America people can invest and buy shares and stocks of gold mining companies to get maximum profit in the future.

6. Lock Gold Price With Bank 

In Pakistan, JS banks provide the facilities to customers through “JS MyGold” to invest their savings in gold and lock the current price of gold. You can invest in 24-karat gold bars, coins, and bullions in monthly installments at minimum markup rates.

• Stay updated about the current gold prices .
• Understand and research the gold purity and difference between 24k,22k,21K,20k,18k gold.
• Read online reviews at different forums and social media platforms about the jewelers or brokers from whom you are going to buy gold.
• Take recommendations from your friends and family members about the reputable jewelers and gold investors in the town.
• Always buy gold from authorized dealers and Jewelers, who have a market reputation.
• Learn the simple gold purity tests like skin color,magnet, floating, sound test
• Always ask the jewelry for an authentic receipt after buying gold containing the details of tax charges and crafting fees.
• Make yourself aware of gold scams.
• Keep the gold in secure places like bank lockers
• Check the hallmarks and Stamps on the gold bars & coins.