The prices of gold and silver have surged to record levels in recent weeks amid rising geopolitical and economic uncertainty, reigniting debate over where Pakistani investors should invest their capital as precious metals extend their sharp rally.
Analysts say the sharp rise has made gold increasingly unaffordable for small investors in Pakistan, pushing interest toward alternative metals, particularly silver.
“If we talk about Pakistan, gold has become so expensive that it’s out of reach for many, and people have started to invest in silver for the past 3-4 months,” Adnan Younus Agar, Director at Interactive Commodities Pvt Limited, told media.
“Individuals, including jewellers, are also investing in copper as well, as its price is extremely low at the moment but is quickly catching up with different metals.”
International gold prices fell on Friday, pressured by a firmer dollar, but were set for their biggest monthly gain since 1980 as investors piled into the safe-haven metal amid persistent geopolitical and economic uncertainties.
Spot gold was down 0.9% at $5,346.42 per ounce, as of 0124 GMT, after scaling a record $5,594.82 the previous day. However, gold prices have risen more than 24% so far in January.
Meanwhile, spot silver was down 0.2% at $115.83 an ounce, after hitting a record high of $121.64 on Thursday. The metal has gained 62% so far this month, on track for its best-ever monthly performance.
Agar noted that silver has seen robust buying and hoarding activity, with China cited as the main driver of global demand.
Bullish outlook: gold expected to stay strong in Pakistan
“In the short term, the silver rally will continue and is expected to reach $200 per ounce by the year’s end,” he said.
However, despite the ongoing rally, the analyst warned that silver, similar to gold, is prone to correction. “The price of silver is expected to pullback by 30-40%, i.e. $75-80,” he said.
He shared that silver can be purchased in quantities ranging from one gram to one kilogram in Pakistan, making it accessible to various investors.
While expensive, gold continues to enjoy a strong long-term outlook amid aggressive buying by central banks and persistent geopolitical uncertainty.
Major international investment banks, including JP Morgan and Goldman Sachs, had earlier projected gold prices in the $5,500–5,600 range, which have already been achieved. “There are chances that it can go up to $6,000 and $6,500 per ounce in 2026. However, it could also correct to around $5,000,” said Agar.
Meanwhile, copper has also entered investor conversations due to its relatively lower price and rising global demand. However, Agar warned that copper, alongside silver, carries significant resale challenges in Pakistan, as the local jewellery market lacks standardisation and offers wide spreads.
“Meanwhile, there is very little spread in gold, because it is recognised,” he said.
Moreover, unlike gold, physical delivery of silver and copper is not available on Pakistan’s mercantile exchange, limiting their appeal.
“While short-term volatility and corrections are expected, the broader outlook for precious metals remains positive as long as demand from China and central banks stays intact,” said Agar.
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