Gold prices surged at the start of 2026, pushing New York spot gold to a record above $5,418 per troy ounce before retreating, a swing that has helped drive a broader consumer rush to either monetize or add to holdings. In recent days, people around the world have lined up to sell jewelry and other pieces of gold to local merchants, while some first-time buyers have gone looking for coins or bars as well. Other consumers have also put money into gold investments such as exchange traded funds that track the metal’s price movement.
The renewed buying and selling comes amid a backdrop of heightened market anxiety and a wider surge-and-swing pattern, said to have increased as the narrative around U.S. monetary leadership shifted. The Associated Press reported that the latest move in gold prices 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.
In interviews cited by the Associated Press, Syracuse University political science professor Daniel McDowell linked gold’s appeal in unstable moments to psychology and uncertainty. He said there has been “a real rupture in the way we think about how the world order, if we want to call it that, functions,” and described gold purchases in such periods as a kind of “psychological reaction” for some people seeking a safer place for their money.
Across the retail end of the market, the demand has been visible in places where merchants say customers come throughout the day looking to transact. In Paris’ historic district for dealers of gold, silver and coins, traders at Godot & Fils told the AP they saw a flow of customers from open to close, totaling about 100 transactions per day. One customer, Annick Le Toulleca, 76, said she came to sell broken jewelry she had kept for years, adding, “Even keeping money in the bank feels a bit risky.” Another buyer, Christophe Thooris, 53, said he converted some cash into gold in hopes of protecting his savings after purchasing a gold coin.
Dealers and retailers also warned that consumers may experience “sticker shock” as the price level rises. The AP reported that swings in value have strained sellers, particularly for products caught up in broader cost pressures, including those affected by new tariffs. Large jewelry retailers such as Pandora and Signet, which owns Zales and Kay Jewelers, acknowledged in 2025 earnings calls that tariffs and rising costs for gold and silver have created headwinds.
Even where customers are shopping in jewelry stores, the economic impact can differ by product. The AP said higher gold prices primarily affect items such as gold chains, while experts noted that diamond costs have been falling. Joshua Barone, a principal wealth manager at Savvy Advisors, pointed to lab-grown diamonds as one reason average prices for diamonds have declined, saying that many pieces with those gems have “actually become cheaper in the stores.”
For consumers deciding whether to sell gold they already own, the AP reported that the choice depends on individual circumstances and on whether the seller wants to part with the metal. Barone suggested it might be better to wait a bit, saying prices could rise if uncertainty deepens or peak depending on future geopolitical developments. But he and other experts also noted that many consumers are selling now, and that gold can be volatile and unpredictable.
The AP also said experts recommend consumers shopping for reputable dealers and comparing the “spreads,” or the price difference between what buyers charge and what sellers receive. Barone told the AP that he personally prefers working with local, in-person dealers because he doesn’t “like the idea of mailing precious metals,” though he said some people have had good experiences online. Experts advised checking reviews or ratings through groups such as the Better Business Bureau and using trusted trade associations, as well as comparing processing times.
For those looking to buy gold now, advisors generally urged consumers to consider what they can afford and how long they can hold the investment. The AP reported that advisors often frame gold as less risky when kept for longer periods—such as 10 years or more—rather than as a short-term bet. Still, prices have shown daily losses, and the AP said prices remain up significantly compared with a year ago even as they could fall again in a wider correction.
While advocates of gold typically argue it can hedge against inflation and diversify portfolios, critics caution that it should not become a substitute for a balanced approach. The AP reported that experts advise against putting “all your eggs in one basket,” and said not everyone agrees gold is a good investment, with critics arguing other derivative-based investments may offer better alternatives.