Gold Investment Strategies

Gold holds a special place in Pakistani culture — from wedding jewelry to a store of intergenerational wealth. But beyond tradition, gold has proven to be one of the best-performing asset classes in Pakistan when measured in PKR terms, often delivering returns of 20% or more annually due to the combination of global gold price appreciation and PKR depreciation.

This chapter will explore the various ways overseas Pakistanis can invest in gold — from physical gold purchased through trusted dealers and stored in bank lockers, to digital gold accounts offered by Pakistani banks, to gold-backed ETFs and mutual funds available through international brokerages in your country of residence. We will compare the costs, liquidity, and risks of each approach.

We will also discuss how to think about gold as part of a broader portfolio. While gold is an excellent hedge against inflation and currency depreciation, it produces no income (no dividends or interest). Understanding when to allocate to gold and how much to hold is crucial for building a well-rounded investment strategy.