More consumers are buying or selling gold. What to know about the latest rush
A surge in gold prices has captivated global markets in early 2026, reaching a record high earlier this week before experiencing some volatility. This has spurred activity worldwide, with individuals both selling existing holdings and investing in the precious metal, reflecting broader economic anxieties.
The Rush to Gold
Consumers are increasingly turning to local merchants to liquidate gold jewelry, while others are purchasing gold coins or bars for the first time. Investment in gold exchange traded funds, which track the metal’s value like stocks, is also on the rise. New York spot gold reached over $5,418 per troy ounce on Wednesday, though prices subsequently fell, with futures dipping below $5,000 by Friday afternoon – a potential sign of market correction.
Geopolitical and Economic Factors
The price increases coincide with a period of heightened global instability. Escalating geopolitical tensions in Venezuela and Iran, coupled with President Trump’s continued assertive foreign policy – including repeated discussion of a U.S. takeover of Greenland and a combative stance towards allies – are contributing factors. These events are occurring alongside a weakening U.S. dollar and questions surrounding the independence of the Federal Reserve.
According to Daniel McDowell, a professor of political science at Syracuse University, the current situation represents “a real rupture in the way we think about how the world order…functions.” He suggests that buying gold in times of instability is often a “psychological reaction” for those seeking a safe haven for their assets.
Impact on Retail and Alternatives
The boom is visible in gold trading centers like Paris, where one dealer, Godot & Fils, reported around 100 transactions per day. Consumers are motivated by a sense of risk, with one individual stating that “even keeping money in the bank feels a bit risky.” However, rising gold prices are impacting retailers. Pandora and Signet, owner of Zales and Kay Jewelers, have acknowledged headwinds from tariffs and increased gold costs in recent earnings calls.
Interestingly, while gold chain prices are rising, the cost of diamonds is falling, driven by the increasing availability of lab-grown diamonds. This shift offers consumers alternative options within the jewelry market.
What’s Next?
Experts suggest that potential buyers might consider waiting, as prices could either continue to rise with deepening uncertainty or peak depending on geopolitical developments. For those looking to sell, finding a reputable dealer is crucial. Comparing “spreads” – the difference between buying and selling prices – and processing times is also advised. Longer-term investments in gold, spanning 10 or more years, are generally considered less risky than short-term speculation.
Frequently Asked Questions
Why are gold prices rising now?
Gold prices are climbing due to a combination of factors, including escalating geopolitical tensions in Venezuela and Iran, President Trump’s foreign policy decisions, a weakening U.S. dollar, and questions about the Federal Reserve’s independence.
Is now a good time to buy gold?
Experts suggest considering your personal financial situation and risk tolerance. Prices could rise further if uncertainty deepens, but they could also fall in a market correction. Longer-term investments are generally less risky.
What should I look for when selling gold?
It’s important to find a reputable dealer, compare the “spread” (the difference between buying and selling prices), and check processing times. Consider working with local, in-person dealers or researching online options through the Better Business Bureau.
Given the current volatility and complex global landscape, how do you assess the long-term viability of gold as a stable investment?