Precious Metals See Sharp Swings: What Jewelry Owners Need to Consider Before Selling
After a historic rally, the gold and silver markets are experiencing significant turbulence, leaving many holders of precious metal jewelry questioning their next move.
The spot price of gold remains up approximately 66% over the last 12 months, with silver posting even more dramatic gains of around 147%. However, last week saw a sharp correction, with gold falling over 9% and silver plummeting more than 27%. The sell-off was broad, impacting investment products like gold bullion, which recorded its steepest single-day drop since 1983.
"Jewelry carries a retail premium that isn't directly tied to daily moves in investment-grade metals," cautioned Mukarram Mawjood, founder of Bullionite Asset Group, in an interview. "It's crucial to understand that a piece bought for adornment shouldn't be treated purely as a financial instrument when considering a sale."
Despite the near-term volatility, major financial institutions maintain a bullish long-term outlook. JPMorgan, in a recent note, forecast gold reaching $6,300 per ounce by the end of 2026, citing sustained demand from central banks and investors seeking portfolio diversification. Deutsche Bank reiterated its $6,000 per ounce price target for this year, while UBS raised its forecasts for 2026.
The price swings have created a two-tiered market: one group of consumers is looking to liquidate family jewelry to lock in gains from the multi-year rally, while another sees the dip as a potential entry point for investment. Analysts note that selling jewelry involves considerations beyond spot prices, including craftsmanship value, buyer premiums, and potential sentimental attachment.
What Readers Are Saying
David Chen, Portfolio Manager, Boston: "This volatility underscores why physical gold and silver should be viewed as long-term hedges, not trading vehicles. The fundamental drivers—geopolitical uncertainty, central bank buying—haven't changed."
Maya Rodriguez, Small Business Owner, Austin: "I sold a few old pieces last month to help with cash flow. The process was straightforward, but you really have to shop around. Offers varied wildly between local jewelers and online buyers."
Ben Carter, Retired Engineer, Phoenix: "It's another manipulated rollercoaster for the little guy. The big banks talk up the price, then dump their holdings and profit from the panic. Regular people selling grandma's ring are just crumbs in their game."
Sarah Lin, Economics Professor, Chicago: "The divergence between jewelry value and bullion value is a key, often overlooked, point. This market activity is a real-time lesson in the different functions of precious metals—as currency, commodity, and cultural asset."