More consumers are buying or selling gold. What to know about the latest rush and swings in value

NEW YORK — The rush for gold climbed to new heights at the start of 2026, with prices hitting a fresh record earlier this week. And around the world, people have lined up to either sell pieces of the precious metal they already own or buy into the frenzy.

Consumers are going to local merchants to cash in golden jewelry. Some are purchasing gold coins or bars for the first time. Others are also putting money into investments like exchange traded funds, trading on the metal's value in a similar way to stocks.

New York spot gold hit a record of more than $5,418 per troy ounce, the standard for measuring precious metals, Wednesday. Prices have fallen since — with futures plunging below the $5,000 mark by Friday afternoon, perhaps indicating a broader correction. Swings in value also became more pronounced after word leaked that President Donald Trump would nominate former Federal Reserve official Kevin Warsh to be the next chair of the U.S. central bank.

Gold can be volatile and unpredictable. Still, prices are far higher than they were a year ago — when New York spot was less than $2,795 a troy ounce. Here's what consumers should know.

What drives surges in gold prices

A lot of it boils down to uncertainty. Interest in buying gold — and other precious metals, like silver — typically spikes when investors become anxious.

Gold prices climbed worldwide at the height of the COVID-19 pandemic and amid ongoing wars and turmoil from Trump's tariffs on foreign goods. The latest records coincide with escalating geopolitical tensions in Venezuela and Iran, Trump's repeated calls for the U.S. to take over Greenland and his increasingly combative stance towards America's allies.

The latest rush for gold also corresponded with a weakening U.S. dollar and questions about the Fed's future independence.

Rising demand for merchants

More jewelry sellers and precious metal dealers are seeing an uptick in customers looking to buy or sell gold.

The boom is tangible in Paris' historic district for dealers of gold, silver and coins. Traders at Godot & Fils say they have a flow of customers from open to close, amounting to about 100 transactions per day.

Annick Le Toulleca, 76, came in to sell broken jewelry she kept for years. ''Even keeping money in the bank feels a bit risky,'' she told The Associated Press. Others were buyers. After purchasing a gold coin, Christophe Thooris, 53, said he decided to convert some cash into gold in hopes of protecting his savings.

Larger retailers like Pandora and Signet, which owns Zales and Kay Jewelers, acknowledged the headwinds of both tariffs and rising costs for gold (as well as silver) in 2025 earnings calls.

Higher gold prices primarily impact products like gold chains. In contrast, experts point to falling diamond costs.

Joshua Barone, a principal wealth manager at Savvy Advisors, notes that lab-grown diamonds have rapidly brought down average prices in recent years. As a result, many pieces of jewelry with those gems have ''actually become cheaper in the stores,'' he adds.

If I own gold, is it a good idea to sell?

It depends on your personal situation and whether you're willing to part with gold you own. But experts like Barone suggest it might be good to wait a bit. Prices could rise if uncertainty deepens, or potentially peak depending on future geopolitical developments.

If you're selling, make sure you're finding a reputable dealer. Barone says he personally prefers working with local, in-person dealers, because he doesn't ''like the idea of mailing precious metals.'' Still, he knows some people have good experiences online. Experts suggest reading reviews or ratings through groups like the Better Business Bureau, or checking with trusted trade associations.

You'll also want to compare ''spreads,'' or the difference in price offered when you buy vs. the money you get when you sell — as well as processing times.

What about buying now?

If you want to buy gold, consider what you can afford and how long you're willing to hang on to it. Advisors generally say that longer investments, such as keeping gold for 10 or more years, are less risky than trying to jump into the market for a quick profit.

Again, precious metals can be volatile, with daily losses like that seen on Friday. While prices are still up significantly over the past year, they could fall again in a wider correction.

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