Introduction With inflation in Pakistan currently fluctuating, keeping cash in the bank is often a mistake. For investors in Rawalpindi and Islamabad with a budget of around 5 Lakhs (as a down payment or investment), two popular options are upgrading their car—specifically the Honda City—or buying Gold. But which one gives better returns in 2026?
The Case for Honda City 2026 (Auto Pulse) The Honda City Aspire has always been a favorite in Pakistan.
- Current Market: The new City Aspire is trading at a premium, but demand remains high.
- Resale Value: Honda City has historically held its value better than most sedans. A 2022 model bought for 45 lacs is now selling for significantly more in the used market.
- The Verdict: If you need a daily runner, the utility combined with the slow depreciation makes this a safe “functional asset.”
The Case for Gold (Market Watch)
- Current Rate: As of February 2026, the Gold Rate per tola has seen significant movement.
- The Trend: Gold has been a consistent hedge against the devaluation of the Rupee. Unlike a car, it has zero maintenance costs and no insurance fees.
- Liquidity: Gold is instant cash. You can sell it anywhere in Pakistan within minutes.
Final Verdict: Car or Gold?
- Buy the City IF: You need a reliable mode of transport and plan to keep the car for at least 3-5 years. The “On” money is high, but the resale is safe.
- Buy Gold IF: You are looking purely for profit over the next 6-12 months. It is the safer hedge against inflation without the hassle of car maintenance.