Frequently Asked Questions
Get direct, authoritative answers to questions regarding gold quality, market benchmarks, and calculations.
How can I verify the purity of gold when buying in Pakistan?
To ensure you are buying genuine gold in Pakistan, always buy from established, reputable jewelers in major Sarafa markets. Look for official laser-engraved purity stamps (such as 916 for 22K or 750 for 18K) or laboratory hallmarking. You can also verify purity by visiting certified assayers or demanding a detailed, itemized receipt containing the exact weight and purity classification of your purchase.
What are gold making charges (Mazdoori) and wastage charges in Pakistan?
When purchasing gold jewelry in Pakistan, you pay the base gold rate plus making charges (labor costs, typically 8% to 15% of the gold value) and wastage charges (gold lost during design crafting, usually 3% to 5%). While the base gold rate is fixed, making charges are negotiable, so it is highly recommended to bargain on the labor cost to get the best deal.
Is gold a safe investment to hedge against PKR depreciation and inflation in Pakistan?
Yes, investing in physical gold has historically proven to be one of the safest hedges against currency devaluation (PKR depreciation) and high inflation in Pakistan. While cash savings lose value over time, gold retains its global purchasing power. Over the long term, gold has consistently outperformed Pakistani Rupee bank deposits and matched or exceeded inflation rates.
What is the difference between buying gold bars, coins, and jewelry for investment?
For pure investment purposes in Pakistan, gold bars (24K) and gold coins (24K or 22K) are far superior to jewelry. Bars and coins carry minimal making charges (typically 1-3%) and are resold at the exact live market rate. Jewelry, on the other hand, involves high making and wastage charges that you cannot recover when selling the gold back.
What is the Pakistan Mercantile Exchange (PMEX) and how can I trade gold online?
The Pakistan Mercantile Exchange (PMEX) is the country's only regulated futures commodity exchange. It allows investors to trade paper gold and gold futures contracts online without the need to physically store or secure the gold. You can open a trading account with a SECP-registered PMEX broker to trade gold contracts based on international prices with leverage.
Are there taxes on buying or selling gold in Pakistan?
Yes, gold transactions in Pakistan are subject to taxes regulated by the Federal Board of Revenue (FBR). This includes a sales tax on the value addition (making charges) and custom duties on imported gold. Legitimate retail outlets will add these taxes to your final invoice, which is essential for documenting your wealth and transactions.
How should I store physical gold safely in Pakistan?
Given safety concerns, physical gold should be stored in secure bank lockers (which cost a nominal annual fee in Pakistan) rather than at home. If you must keep gold at home, use high-quality, fireproof, hidden safes. It is also wise to keep purchase receipts separate from the gold and avoid discussing your holdings or purchases in public settings.
What is the buyback policy of gold jewelers in Pakistan?
When selling gold back to a jeweler in Pakistan, they will evaluate the weight and purity of the gold and pay you based on the current gold rate today. They do not refund making charges, wastage charges, or sales tax paid during purchase. To secure the highest payout, sell your gold to the original jeweler you purchased it from and present the original purchase receipt.