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Investors and metals traders can\u2019t agree on what\u00a0exactly is behind gold\u2019s recent rally. At\u00a0King Gold & Pawn<\/a>\u00a0in Brooklyn, the customers don\u2019t care. They just want to sell.<\/p>\n For some, sky-high values simply mean it\u2019s a good time to cash in; It\u2019s hard to ignore record prices that climbed above\u00a0$2,400 an ounce last week. For others, it\u2019s a more desperate move to get money for bills and rent. Whatever the need, what\u2019s clear is jewelers and pawn shops are seeing a flood of sellers.<\/p>\n \u201cPeople are using gold as an ATM they never had,\u201d said Gene Furman, owner of King Gold & Pawn and\u00a0Empire Gold Buyers<\/a>. At Furman\u2019s 5th Avenue store, the number of people coming in selling and pawning gold jewelry is more than three times above normal levels since prices started to rally in late February.<\/p>\n Among them is Branden Sabino, a 30-year-old IT specialist, who sold a gold necklace and a gold ring last week.<\/p>\n \u201cPrices are high, and I need cash,\u201d he said, adding that with the cost of rent, groceries\u00a0and car insurance rising, he doesn\u2019t have any savings.<\/p>\n The speed and magnitude of gold\u2019s ascent is astonishing \u2014\u00a0since the 2024 low in mid-February, it has rallied 17%.\u00a0<\/p>\n Investors typically seek safety in gold for fear of political, economic and financial crises. Escalating tensions\u00a0in the Middle East, a war in Ukraine, and an upcoming US election are now underlining its traditional role as a haven asset once again. At the same time, some investors have been betting\u00a0that inflation may stick higher in the long run, underpinning gold\u2019s run.\u00a0<\/p>\n As experts argue over the causes \u2014\u00a0economic, political or technical \u2014\u00a0for Mirsa Vijil, the equation is much simpler:\u00a0\u201cGold is high.\u201d<\/p>\n At King Gold, the 55-year-old was pawning a bracelet for gas bills. It was\u00a0her first time using such a service, but she says she\u2019ll do it again if needed.<\/p>\n Most gold is held by countries \u2014 the US alone has more than 8,000 tonnes \u2014 but the world is filled with private stashes. For many, the idea of gold conjures up the 400-ounce bars seen in movies such as\u00a0Goldfinger\u00a0<\/em>and British heist comedy\u00a0The Italian Job<\/em>.\u00a0<\/p>\n But dealers sell units as small as 1 gram (about 0.032\u00a0of a troy\u00a0ounce). Then there\u2019s jewelry or coins, bought as gifts, gathered over years by families, handed down through generations.<\/p>\n Changing fashions, as well as financial needs, mean there\u2019s often less reason now to pass\u00a0on old pieces to relatives. And current prices are a tempting offer.<\/p>\n \u201cYoung people are not wearing grandma\u2019s jewels. Most of the young people, they want an Apple<\/a> watch. They don\u2019t want a pocket watch,\u201d said Tobina Kahn, president of House of Kahn Estate Jewelers. \u201cSentimental is now out the door.\u201d<\/p>\n On Friday, bullion prices for immediate delivery in London rose to a fresh record of $2,431.52\u00a0an ounce, after a series of peaks in the past month. It later slipped back to about $2,341.<\/p>\n Right now, much of the demand is coming from Asia and emerging markets, gold watchers say.<\/p>\n Central banks led by China have been scooping up gold at\u00a0unprecedented levels<\/a>\u00a0since 2022 in an effort to diversify away from the dollar reserve system.<\/p>\n Regular consumers in the Asian nation are buying too, snapping up coins, bars, jewelry \u2014\u00a0even\u00a0beans<\/a>\u00a0\u2014\u00a0as well as\u00a0exchange-traded funds tracking gold and gold mining stocks to hedge against turmoil in the country\u2019s property sector.\u00a0<\/p>\n It\u2019s a reversal from a historical pattern that\u2019s governed the global trade for decades, where Asian buyers have tended to sell at times of high prices.<\/p>\n In western economies, given the relative economic strength, particularly in the US, \u201cthere\u2019s no urgency to buying gold,\u201d said Adrian Ash, director of research at online gold investment service BullionVault. \u201cGaza, Ukraine, these are just catastrophes. But they\u2019re just not clear and present for western investors right now.\u201d<\/p>\n In recent weeks, BullionVault\u2019s trading platform has seen more than twice as much selling as the year before. \u201cPeople are very happy to take this price,\u201d Ash said.<\/p>\n The lack of urgency to own gold is also reflected in weak sales at the US Mint \u2014\u00a0it recorded the worst March since 2019 for its\u00a0American Eagle<\/a>\u00a0gold coin sales.<\/p>\n Of course, long-term issues such as rising US debt levels and the health of the banking system, as well as worries about inflation,\u00a0mean some investors want to own the metal regardless of the price.<\/p>\n Jason Collins, director at Gerrards Precious Metals\u00a0in London\u2019s historic Hatton Garden jewelry quarter, said some of his customers still buy gold due to doubts about banks.<\/p>\n \u201cIf suddenly something happened bad in the UK\u2019\u2019 and \u201cthe whole banking system collapsed. Your gold in your pocket wouldn\u2019t collapse,\u201d he said.<\/p>\n So, where next for gold? Tobina Kahn has a word of caution for any holders biding their time, hoping it may hit\u00a0$3,000. Her view is don\u2019t wait.<\/p>\n \u201cIt\u2019s very busy and\u00a0we are getting more calls than ever before about clients wanting to bring in their jewels,\u2019\u2019 she said.\u00a0\u201cI\u2019m telling the clients to bring them in now, as\u00a0we are at unprecedented levels.\u201d\u00a0<\/p>\n<\/div>\n\nLearn how to take control of your personal finances with Get Your Due, our six-week email bootcamp. Sign up<\/a> for free.<\/div>\n