Gold’s Recent Volatility
Gold has long been seen as a stable, safe-haven investment. Yet lately, its price behavior has grown remarkably volatile, resembling a speculative asset with sudden climbs and steep drops. I remember when gold cost about $250 per troy ounce in 1999; this year it soared past $5,600 in January and has hovered near $5,000 for months.
Speculation
During COVID, gold hovered around $1,800 per ounce. By January 2026, it had surged to more than triple that price. Inflation has been high, but few things have tripled since the pandemic. Over January 29–30, gold dropped more than $750 in less than 24 hours before rebounding slightly. Just a year ago it traded near $3,200; as I write this, it’s $4,852. Gold feels increasingly speculative!
Inventory
For jewelry retailers, replacing inventory has become a major challenge as prices continue to climb. Updating pricing has been a constant struggle across the industry. Manufacturers, retailers, and e‑tailers are racing to keep catalogs, websites, and jewelry tags current.
Pricing
People often remember what they paid for gold jewelry years ago. Once, I helped a grandmother and mother buy a ring for a graduating daughter. The grandmother expected to spend about $200; the mother, around $500. Both were stunned when the price exceeded $1,000. Fortunately, lab‑created diamonds have become so affordable that the average engagement ring actually costs less today.
Buying Gold from the Public
With prices rising and markets swinging, buying gold from the public has grown risky. Retailers must test pieces quickly and carefully, but convincing fakes can slip through—costing hundreds or even thousands of dollars. The higher the gold price, the greater the risk. Utah law also requires retailers to report every gold purchase to a state pawn database and hold items for 30 days. If jewelry turns out to be stolen, the retailer loses the money.
Some customers can be especially persistent. Once, a man walked in with crushed rock in his shirt, convinced the sparkles were gold or diamonds. It took two employees—and finally me—to persuade him otherwise.
The silver lining is that your old gold jewelry has probably gained significant value. Pieces bought decades ago are worth much more today. Belliston Jewelry buys unwanted gold, paying more than any competitors we know—and even more when you trade it toward a new piece. You can also keep your gemstones and give them new life in fresh settings.
Investing in Gold
Gold and other precious metals are traditional diversifiers and long‑term inflation hedges. Some cultures have worn their wealth in jewelry for centuries. Belliston Jewelry has even crafted one‑troy‑ounce bracelets for clients.
Owning real gold coins or bars can be a solid long‑term strategy—but guarding, storing, and insuring them is essential. The biggest challenge lies in the bid‑ask spread, often 10% or more, which makes selling difficult. Because of current volatility, Belliston Jewelry has paused gold coin purchases until prices stabilize.
A lower‑spread alternative is a gold ETF (Exchange‑Traded Fund), which lets investors buy gold shares without holding the metal. The spread is under 1%, though some argue ETFs have fueled the very volatility disrupting gold’s reputation as a safe‑haven asset.
Conclusion
Gold’s extreme price swings have unsettled both jewelers and investors. Sudden drops can happen anytime—but the lure of further gains keeps driving speculation and investment.
