From wars in the Middle East to elections in the US, understand why global instability makes your gold more valuable.
Gold as a Safe Haven
For thousands of years, gold has been the ultimate "safe haven" asset. During times of geopolitical peace and economic boom, investors prefer risky assets like stocks. But when war breaks out or a pandemic hits, investors panic and move their trillions into gold.
The Ripple Effect
When an international crisis occursΓÇösuch as rising tensions in the Middle East or a sudden spike in oil pricesΓÇöglobal hedge funds buy gold aggressively. This pushes the spot price per ounce higher in London and New York.
The Local Impact
Within seconds, this global price spike is reflected on the trading screens of Karachi's bullion dealers. The All Pakistan Sarafa Jewellers Association immediately revises the daily rate upward, meaning a conflict thousands of miles away instantly increases the wealth of anyone holding gold in Pakistan.