Silver Shines as Gold's Wild Ride Pushes Pakistani Investors Toward Affordable Haven
LAHORE, Pakistan — In the bustling markets of Lahore and Karachi, a quiet shift is underway. With global gold prices on a stomach-churning rollercoaster, traditional investors and new entrants alike are turning their attention to a more accessible metal: silver.
The recent whipsawing in bullion markets—driven by geopolitical tensions and shifting central bank policies—has not just piqued interest but altered buying habits. Jewellers across major cities report a surge in inquiries and purchases of silver bars and jewellery, as the steep entry point for gold pushes it out of reach for many.
"The phone hasn't stopped ringing," says Waqas Siddiqi, a third-generation jeweller in Lahore. "But the questions have changed. It's less about a necklace for a wedding and more about, 'Can I buy a 100-gram silver bar today?' The jewellery business is softening, while the investment side, especially for silver, is booming."
Data underscores the trend. This week, the domestic price for 10 grams of gold breached 440,000 Pakistani Rupees (approx. $1,572), a sharp climb. While silver also rose, its price per 10 grams—around 7,800 Rupees ($28)—remains a fraction of the cost, offering a viable alternative.
Analysts point to a confluence of factors. "The initial panic was fueled by fears of a U.S.-Iran conflict, which traditionally sends investors scrambling for 'safe havens' like gold," explains Ali Aftab Saeed, an independent investment analyst based in Lahore. "But the subsequent volatility has made that haven feel less safe. Meanwhile, China's massive pivot from U.S. Treasuries to gold reserves has created a sustained underlying demand, lifting all boats in the precious metals sector."
This volatility is reshaping social traditions. Hanif Chand, a former vice president of Karachi's jewellery association, notes that the practice of buying gold jewellery as a family heirloom is waning. "Gold is simply too expensive for that now. Families are opting for high-quality artificial jewellery for weddings and redirecting their savings into silver bars as the investment of choice. Much of the gold in the market today is recycled."
The trend highlights Pakistan's position in the global market. As the world's 84th-largest gold importer, its domestic market is more reactive than influential. "Small investors are buying what they can afford, which is increasingly silver," says Saeed. "But the future trajectory hinges on larger forces—primarily the outcomes of upcoming high-stakes diplomatic meetings and monetary policy decisions in the West."
For shop owners like Razzak Ahmed in Islamabad, the shift is palpable. "A year ago, 10 grams of silver was near 4,000 Rupees. Today, it's nearly 15,000. The return is significant, and the barrier to entry is low. People feel they can at least participate."
Voices from the Bazaar
We asked individuals in Lahore's Anarkali Bazaar for their take on the metals rush:
Farhan Ali, 42, School Teacher: "I've always saved a little for my daughters' futures. Gold is now a dream, but I bought two small silver bars last month. It's tangible, it's rising, and it gives me peace of mind amidst all this economic uncertainty."
Maria Khan, 29, Freelance Graphic Designer: "It's a smart hedge. The rupee fluctuates, but silver is a global commodity. I see it as a more practical part of my portfolio than crypto right now. It's a physical asset I can understand."
Salman Ahmed, 58, Retired Bank Manager (sharper tone): "This is a symptom of a failing system! People are clutching at silver because they've lost faith in currency and traditional investments. The government should be stabilizing the economy, not forcing citizens to become amateur commodity traders. It's desperation, not strategy."
Ayesha Raza, 35, Small Business Owner: "For my business, I follow liquidity. Silver is easier to buy and sell quickly if I need cash. The high premiums and making charges on gold jewellery make it a poor short-term store of value. Silver is the logical choice."