Silver Rate in Pakistan

Understanding Silver Rates in Pakistan

Silver rates in Pakistan are determined by international silver prices, local market conditions, and currency exchange rates. Silver is traded in various forms including jewelry, coins, and bars, with prices quoted per tola (11.664 grams) or per 10 grams.

Factors Affecting Silver Rates

Several key factors influence silver prices in Pakistan:

• International Silver Prices: Global silver prices, quoted in USD per ounce, form the base for local pricing. The London Bullion Market Association (LBMA) sets the benchmark for global silver prices.
• Industrial Demand: Unlike gold, silver has significant industrial applications in electronics, solar panels, medical equipment, and photography, making its price sensitive to industrial growth forecasts and technological advancements.
• Currency Exchange Rates: Fluctuations in the PKR against the USD directly impact silver prices. A weakening rupee typically results in higher silver prices in local currency.
• Gold-Silver Ratio: The relative price of gold to silver often influences investment decisions and can affect demand. Historically, this ratio has averaged around 60:1, though it currently stands at approximately 84:1, suggesting silver might be undervalued relative to gold.
• Government Policies: Import duties, taxes, and regulations affect the retail price of silver in the Pakistani market.
• Seasonal Demand: While not as pronounced as with gold, silver demand can increase during wedding seasons and festivals, particularly for silver jewelry and gifts.

Historical Silver Rate Trends

Looking at the historical data from 2000 to 2024, silver prices in Pakistan have shown significant growth, though with more volatility than gold. In 2000, silver was priced at approximately ₨ 120 per tola, compared to the current rate of ₨ 2,850 per tola. This represents an increase of about 2,375% over 24 years.

Several notable periods stand out in Pakistan's silver price history:

• 2006-2011: Silver prices saw a dramatic increase during this period, rising from ₨ 290 to ₨ 1,250 per tola, with the peak in 2011 representing a significant spike in global silver demand.
• 2012-2015: A period of correction and decline, with prices falling from ₨ 1,250 to ₨ 780 per tola.
• 2019-2024: Another period of strong growth, with prices rising from ₨ 1,250 to ₨ 2,850 per tola, influenced by similar factors as gold: global economic uncertainties, the COVID-19 pandemic, and PKR depreciation.

Interestingly, the gold-to-silver ratio has fluctuated significantly over this period, reaching as high as 84:1 in recent years, compared to historical averages closer to 60:1, suggesting potential opportunities for silver investors.

Silver as an Investment

Silver is often considered a more accessible precious metal investment compared to gold due to its lower price point. It serves as:

• A hedge against inflation and economic uncertainty
• A portfolio diversification tool
• A store of value with potential for appreciation
• An entry point for investors with smaller budgets
• A potential high-growth asset during precious metals bull markets

For more detailed investment strategies, visit our guide to silver investment opportunities in Pakistan.

Types of Silver Available in Pakistan

Silver is available in various forms and purities:

• 999 Silver: 99.9% pure silver, ideal for investment
• Sterling Silver (925): 92.5% pure silver, commonly used for jewelry and tableware
• Silver Coins: Available in various weights and designs, popular for collectors and investors
• Silver Bars: Range from small 10g bars to larger 1kg bars, preferred by investors seeking maximum value
• Silver Jewelry: Popular for everyday wear due to its affordability compared to gold
• Silver Utensils: Traditional items like tea sets and serving dishes, which combine utility with investment value

Comparing Silver with Gold

When considering precious metal investments in Pakistan, many investors compare silver with gold. While gold is more stable and culturally significant, silver offers several distinct advantages:

• Lower entry point for new investors
• Potential for higher percentage gains during bull markets
• Industrial demand providing additional price support
• Greater affordability for regular accumulation strategies

For a detailed comparison between these two precious metals, read our Gold vs. Silver analysis.

Monitor silver rates regularly on PakistanRate.com to identify optimal buying and selling opportunities. For daily updates, check our Today's Silver Rate page.