Gold rush sparks surge in jewelry and bullion sales

[WORLD] Gold prices have soared in recent weeks, opening a window of opportunity—particularly for those with estate jewelry gathering dust. “We’re seeing more people—everyday individuals and families rather than investors—selling or melting down old jewelry to take advantage of the strong market,” said Tim Schmidt, founder of the gold investment resource Gold IRA Custodians.

But it’s not just jewelry hitting the market. Bullion dealers and refiners are also reporting a rise in inquiries from individuals who bought gold coins and bars years ago, often during economic crises. “Many people bought during the 2008 downturn or the pandemic and are now seeing solid returns,” Schmidt said. “Gold continues to prove its worth as a safe-haven asset.”

Some are cashing in to cover urgent financial needs; others are discovering forgotten pieces have significantly appreciated in value. The rally in gold prices is prompting more people to sell family heirlooms or other valuables that can be melted down, Schmidt noted.

A mix of global dynamics is fueling the surge. Central banks in countries like China and India are aggressively increasing gold reserves, diversifying away from the U.S. dollar. At the same time, geopolitical instability—such as conflicts in the Middle East and Ukraine—is stoking demand. “When uncertainty rises, gold’s role as a store of value becomes even more compelling,” said Jordan Roy-Byrne of The Daily Gold.

Last week, spot gold prices hit a record high of over $3,500 an ounce, driven in part by new tariffs announced by former President Donald Trump in April, which raised fears of a global trade war and potential recession. A year ago, gold was trading at roughly $2,200 to $2,300 an ounce.

As of Wednesday morning, gold futures were up about 23% since the beginning of the year and nearly 36% higher compared to the same time last year. “Gold is driven by fear—and there’s no shortage of fear in today’s markets,” said Kathy Kristof, personal finance expert and founder of SideHusl.com.

The emotional appeal of gold also plays a role. Unlike stocks or bonds, gold isn’t tied to corporate earnings or interest rates, making it particularly attractive in volatile times. “People view gold as a way to opt out of the conventional financial system when confidence in institutions falters,” Kristof added. “If you’re looking to sell, the best time is when fear is peaking,” she advised. “Now may be that moment.”

For many, gold represents a form of “financial insurance,” said Roy-Byrne. Whether it’s high-karat jewelry, bullion bars, or coins, gold provides a tangible, dependable asset that can be easily liquidated in tough times. “Gold is reassuring,” Schmidt said.

Understand the Costs and Risks

However, selling physical gold isn’t without its drawbacks. Kristof warned that transaction fees are often high and not always clearly disclosed.

Scammers also target inexperienced sellers, especially online or through temporary gold-buying events. “Bad actors may offer far less than market value or use misleading weighing practices,” Schmidt cautioned. He recommends working only with reputable dealers vetted by organizations such as the Better Business Bureau or the American Numismatic Association.

Before selling, consumers should look up the current spot price of gold and estimate their piece’s value based on its weight and purity. “It’s important to do the math before you walk into a pawn shop or send gold off to an online buyer,” Kristof said. “Otherwise, you risk getting lowballed.”

As a guideline, 24-karat gold is pure gold, while 18-karat gold contains 75% gold and 25% other metals. “It’s a competitive marketplace,” Kristof added. “You can often get a better deal if you shop around.”

Is Now the Right Time?

Some analysts believe gold has already reached a short-term peak, while others think there’s more upside. “My take is that prices have hit an interim high that should hold through the fall,” said Roy-Byrne.

If inflation remains high or the Federal Reserve signals interest rate cuts, gold could see another leg up. “Gold does well in low-rate environments,” Roy-Byrne noted. “A Fed pivot could spark further gains.”

Ultimately, Kristof said, sellers need to weigh whether they’ve made a good return already or if holding out for a better price is worth the risk. “Only you can decide if it’s wise or foolish to wait.”

Watch for Taxes

One potentially overlooked factor is taxes. Selling gold at a profit may trigger a higher tax bill than expected, said Troy Lewis, CPA and accounting professor at Brigham Young University.

That’s because the IRS classifies physical gold—such as jewelry, coins, and bullion—as “collectibles,” subject to a long-term capital gains tax rate of up to 28%, compared to a maximum of 20% for assets like stocks and real estate.

Think Before You Melt

Schmidt urges sellers to proceed carefully before melting or selling valuable pieces. “It can be a good financial decision for those in need of quick cash, but not everything should be melted down,” he said.

Jewelry with artistic or historical value—especially heirlooms—may be worth more in original form than as raw metal. “Once a unique item is melted, its individual value is lost,” Schmidt warned. He recommends consulting with a reputable appraiser or jeweler before making any final decisions.