Gold remains top as the best-performing asset in 2022
Gold outperformed all other assets in 2022, becoming the top performer with a return of more than 40%, a research note issued by Topline Securities showed.
After gold, one-year (dollar-based) ‘Naya Pakistan Certificates’ and ‘US currency’ were counted as the most profitable assets this year.
All three asset classes provided returns that were higher than the estimated average inflation of around 20 per cent in 2022.
In the year 2022, the price of gold increased by 41% from Rs108,200 per 10 grams to Rs152,700. Its rate increased 11pc in 2021.
In the local sarafa market, gold rallied in line with an increase in the US dollar rate in the black market. Currently, the yellow metal is valued at black market parity rather than the official rate, which is 10% lower, it said.
Investors holding scheme ‘Naya Pakistan Certificate’ under Roshan Digital Accounts also gained 36 percent in Pak rupee mainly due to depreciation of the rupee.
Similarly, investors holding dollars have made a profit of 28 percent in 2022, the official bank rate for the US currency has increased from Rs177 at the end of 2021 to Rs226 today.
According to Topline Securities, many investors shifted their capital to fixed income assets in 2022 due to the increase in interest rates, which hiked from 9.75 percent to 16 percent in Pakistan this year.
This resulted in an average return of 14% on the 3-month Treasury bill, while local money market funds also posted an average return of 14% in 2022.
In 2022, the average return on bank deposits (excluding current accounts) and special savings certificates issued by the government stood at 11 percent.
Most famous and widely followed property sector was also affected in 2022 due to macroeconomic concerns. Indices tracking houses, plots and residential property were up 12-14% in 2022.