KARACHI: A sharp increase has been noted in the price of gold, and now a 10 tola gold bar costs Rs430,000.
Local traders have issued two different rates for 10 grams and one tola gold, showing an increase in both the rates.
On the basis of morning reports that international market of gold had swelled to $1,326 per ounce, up by $10 per ounce from Monday, the local dealers quoted 10 gram rate at Rs36,600, showing an increase of Rs172 from Monday.
Similarly, the rate of one tola of gold was quoted at Rs42,700 on Tuesday evening, up by Rs200 per tola as compared to Monday’s rate.
At 8pm, gold dealers finally quoted the closing rate of 10 grams and one tola at Rs36,857 and Rs43,000 based on the new rate of $1,337 per ounce in the international market. It means that a 10 tola gold bar has hit a new record price of Rs430,000.
It is not clear as to what rate was charged by jewellery dealers in the city from consumers for buying jewellery sets.
Mohammad Hanif Chand, a member of the All-Sindh Sarafa Association, linked the price-hike to intense gold buying by China and European countries and investors’ reaction on falling strength of dollar against various currencies.
Besides, India has also been lifting gold where good sales are usually recorded between August and November owing to festival of Dussera this month and Dhanteras and Dewali next month when demand usually surges sharply.
He said that the record gold price in 2009 was Rs38,900 per tola while 10 gram rate was Rs33,342 achieved in the first week of December 2009.
At that time, international gold rate was $1,219 while one dollar was equal to Rs76 in the country. Hanif said that in Pakistan gold is selling under cost at Rs350-400 per tola as compared to its price in Dubai.
Due to rising un-affordability, he said many families are bringing their old jewellery sets. For example, he said people bring three tola jewellery set for making one to 1.2 tola set of new designs.
He said people belonging to low-income groups prefer purchasing jewellery sets of 12 carat gold, while higher income groups buy 18 carat or above.
He further stated that people are now investing in gold in Pakistan after losing hope in turbulent stock market, and the rich buy 24 carat pure gold, whose 10 tola bar now costs Rs430,000.
According to figures of the Federal Bureau of Statistics (FBS), gold imports had swelled to 260kg ($24 million) in July-August 2010 as compared to 270 kg ($8 million) in the same period of 2009.
Jewellery exports, however, plunged by 41 per cent to $78.6 million in July-August 2010 as compared to $132.4 million in the corresponding period of 2009. ASSA president Haroon Chand said that there was one per cent withholding tax on import of gold by commercial importers which now comes to Rs430 per tola in view of current global price.
The government should bring it down to Rs150 per tola to encourage legal imports.
He said there was no duty on import of yellow metal if imports are made for export of jewellery after value-addition.
As per government policy, any quantity exported in the form of gold jewellery has to be imported in the form of yellow metal within eight months.
He claimed that no official duty was being paid on imports for the last two to three years due to imposition of duty.