Gold Rush 2026: Record Prices and Wild Swings Drive Consumers to Buy and Sell
NEW YORK (AP) — The global gold market is experiencing a historic surge, captivating both seasoned investors and first-time buyers. This week, spot gold in New York shattered records, breaching $5,418 per troy ounce before a swift correction sent futures tumbling below $5,000. The volatility has ignited a dual frenzy: long lines at local jewelers where consumers cash in family jewelry, and a spike in purchases of coins, bars, and gold-backed funds.
The dramatic swings intensified following reports that President Donald Trump intends to nominate former Fed official Kevin Warsh as the next chair of the U.S. central bank, raising fresh questions about monetary policy direction. While prices have retreated from their peak, they remain nearly double their level from a year ago, underscoring a profound shift in market sentiment.
Uncertainty Fuels the Frenzy
Analysts point to a potent cocktail of anxiety driving the demand. "We're witnessing a fundamental reassessment of global stability," said Daniel McDowell, a political science professor at Syracuse University. "From escalating tensions in Venezuela and Iran to unconventional trade and foreign policy moves, investors are seeking a traditional safe harbor." This search for safety is compounded by a softening U.S. dollar and debates over Federal Reserve independence.
Ground Zero: Dealers Feel the Heat
On the ground, the boom is unmistakable. In Paris's historic trading district, shops like Godot & Fils report non-stop traffic, processing roughly 100 transactions daily. "Even keeping money in the bank feels a bit risky," said Annick Le Toulleca, 76, who sold broken jewelry she'd held for decades. Another customer, Christophe Thooris, 53, explained his purchase of a gold coin: "It's about protecting what I've saved."
For retailers, however, the soaring prices present a double-edged sword. Major players like Pandora and Signet (owner of Zales and Kay Jewelers) cited rising precious metal costs and tariff impacts in recent earnings calls. While gold chains have become more expensive, Joshua Barone, a principal wealth manager at Savvy Advisors, notes a contrasting trend: "Lab-grown diamonds have rapidly brought down average prices... many jewelry pieces with those gems have actually become cheaper."
To Sell or to Buy? Navigating the Rush
For owners contemplating selling, experts advise caution and due diligence. "Prices could rise further if uncertainty deepens," Barone suggests, recommending a potential wait-and-see approach for those not in urgent need. He emphasizes finding a reputable dealer, preferably local, and comparing "spreads"—the difference between buy and sell prices.
For prospective buyers, the advice is to think long-term. Advisors warn against chasing quick profits in such a volatile market, noting that gold is best held as a multi-year diversification strategy, not a short-term gamble. While it can hedge against inflation, the consensus remains clear: never put all your eggs in one basket.
Voices from the Crowd
Marcus Chen, 42, Financial Analyst, Boston: "This is classic flight-to-safety behavior. The fundamentals support holding some gold, but the current volatility is a trader's game, not for the faint of heart."
Eleanor Vance, 68, Retired Teacher, Chicago: "I sold my old wedding band last week. It felt strange, but the price was too good to pass up. It's money that can help with bills now, not just sit in a box."
David Keller, 35, Tech Entrepreneur, San Francisco: "This rush is pure fear-driven speculation. Crypto and tech equities have generated real wealth. Gold is a shiny relic. The nomination of a political ally like Warsh just proves the system is being manipulated, and gold is just another volatile piece in that game."
Priya Mehta, 50, Small Business Owner, London: "We've seen this cycle before. For people in countries with unstable currencies, gold is logical. For everyone else, it's a emotional security blanket. The smart move is a balanced, calm approach."
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AP Journalist Nicolas Garriga contributed reporting from Paris.