Muhammad Luqman

With global gold prices hitting historic highs amid geopolitical and economic uncertainty, a growing number of Pakistanis are turning to gold-plated jewelry as an affordable alternative to traditional solid gold ornaments. In the international market, gold recently surged past US$4,000 per ounce, while in Pakistan, the price per tola (11.6 grams) has exceeded Rs425,000, pushing fine jewelry beyond the reach of most households.

Jewelry experts explained that gold-plated jewelry consists of a thin coating of gold applied over another metal—usually silver or brass—through a process known as electroplating, in which a layer of gold, typically between 0.5 and 2.5 microns thick, is deposited onto the surface of a base metal.

“The sale of solid gold jewelry in Pakistan has declined drastically after the unprecedented rise in prices. People now buy gold mainly as an investment rather than for personal adornment,” said Hafiz Muhammad Ahmad, Chairman of the Punjab Gems and Jewelers Association and a jeweler at Lahore’s historic Suha Bazaar.

Speaking to Wealth Pakistan, Ahmad said that while gold has traditionally symbolized wealth and prosperity in Pakistani culture, surging prices have forced many buyers to seek alternatives. “This has led to a significant increase in demand for gold-plated jewelry,” he noted.

He added that gold-plated ornaments are now being imported from Turkey, China, and other countries, alongside domestic production. He also suggested that consumers consider low-carat jewelry—such as 14, 9, or 8 carats—as 24-carat gold has become prohibitively expensive. “The price of one tola of 8-carat gold is around Rs140,000, compared to Rs425,000 for 24-carat,” Ahmad said, underscoring the widening affordability gap.

According to jewelers, the demand for pure gold jewelry is now largely confined to the elite class. In Lahore, such jewelry is primarily sold in upscale markets like M.M. Alam Road, DHA, and select outlets in Gulberg, where even affluent customers have scaled back spending. “Even in these localities, gold jewelry sales have dropped by about 50 percent over the past year,” said Moazzam Waheed, Chairman of the Gold and Gems Traders Association, Lahore.

Waheed explained that many customers initially shifted to gold-plated silver jewelry, but with silver prices also climbing to Rs6,000 per tola, most now prefer gold-plated brass ornaments. “A gold-plated jewelry set typically costs around Rs50,000, compared to over Rs5 million for a solid gold set,” he told Wealth Pakistan.

He added that artificial jewelry made from non-precious metals is also gaining traction among lower-income groups, reflecting a broader market shift toward affordability. Beyond cost considerations, Waheed said gold-plated jewelry offers aesthetic and practical advantages. “It allows people to enjoy the beauty and elegance of gold without breaking the bank,” he remarked.

He noted that gold-plated brass jewelry is relatively durable and less prone to tarnishing than other variants like gold-filled or gold-coated pieces. “It’s available in a wide variety of designs and styles, making it a versatile accessory suitable for different occasions,” he added.

Credit: INP-WealthPk