For centuries, gold has been the ultimate symbol of wealth and security. Unlike paper currencies that can be printed at will, gold’s scarcity and physical nature make it a premier hedge against inflation and a stabilizer for any investment portfolio.
But as we navigate the unique economic landscape of early 2026, many Canadians are asking: Is now a good time to buy gold? Or, with prices reaching historic highs, is it actually the perfect moment to look into selling gold prices and cashing in?
In short, buying now could make sense if you’re investing for the long term, want diversification, and understand that prices can swing, but it’s typically not best to put all your money into gold.
Gold: A Timeless Asset: Why People Buy It
Gold isn’t just a commodity; it’s a “haven.” Investors flock to it for several strategic reasons:
- Store of Value vs. Inflation: When the cost of living rises, and the purchasing power of the dollar shrinks, gold historically maintains its value.
- Safe Haven in Uncertain Markets: In times of geopolitical tension or stock market volatility, gold remains a stable anchor.
- Physical vs. Paper Gold: You can own gold through ETFs (paper) or physically through coins, bars, and jewellery. Physical gold offers the added benefit of privacy and no “counterparty risk.”
- Emotional and Cultural Value: Beyond its price, gold carries immense weight in weddings, heritage, and as multi-generational gifts.
Is Now a Good Time to Buy Gold? What Experts Say
Gold is going through a tremendous bull run as of January 2026. With spot prices approaching the psychological barrier of $5,000 per ounce, the market is at a fascinating crossroads.
Market Conditions Favouring Gold
The current rally is driven by a “triple threat”:
- Interest Rates: The Federal Reserve is expected to deliver multiple rate cuts this year. Lower rates reduce the “opportunity cost” of holding gold, as it doesn’t pay interest like a bond.
- Central Bank Demand: Central banks in emerging markets are buying gold at record rates to diversify away from the US dollar.
- Geopolitical Risk: Ongoing tensions in Eastern Europe and South America have kept “haven” demand at an all-time high.
Historical Performance Trends
Historically, gold rallies during periods of “fiscal dominance,” where government debt is high. With global debt at record levels in 2026, gold is performing exactly as it did during the stagflation of the 1970s and the 2008 financial crisis.
The Verdict: While prices are high, many analysts (including those at Goldman Sachs) have raised their year-end targets to $5,400. This suggests that while we may see short-term pullbacks, the long-term trend remains upward.
How Gold Prices Are Set: What Determines the Value
Understanding the price of gold is the first step to a fair transaction. The value of your gold is determined by three main factors:
- The Spot Price: The current market price for one troy ounce of 24K (pure) gold is known as the spot price. During trading hours, it varies by the second.
- The Karat System of Purity: The majority of jewellery isn’t made entirely of gold.
- 24K: 99.9% pure gold (mostly coins and bars).
- 18K: 75% gold (high-end jewellery).
- 14K: 58.3% gold (most common in North America).
- 10K: 41.7% gold (durable, entry-level jewellery).
- Weight: Gold is measured in grams or troy ounces (1 troy ounce = 31.1 grams).
Selling Gold: What You Need to Know
If you are looking at the current record-high prices and thinking about selling, you need to understand how gold prices are calculated at the retail level.
The Calculation
A reputable buyer starts with the spot price, adjusts for the purity of your item, and then applies a small margin or fee to cover refining and business costs.
Pros and Cons of Different Selling Options
- Reputable Jewelers
- Pros: Offers fair market value, expert testing, and a safe environment for your items.
- Cons: May not purchase scrap or broken jewelry.
- Gold Buyers
- Pros: Provides fast cash and specializes in buying bullion.
- Cons: Margins can vary greatly, and prices may fluctuate.
- Pawn Shops
- Pros: Immediate liquidity, meaning you can get cash quickly.
- Cons: Often pay significantly below market value, meaning you might not get the best price.
- Online Buyers
- Pros: Offers convenience, allowing you to sell from the comfort of your home.
- Cons: There’s a risk of mailing valuable items, and it may be harder to negotiate for a better price.
The Case for Caution: Why You Might Want to Wait (or Sell)
Here are the three primary reasons why an investor might decide to stay on the sidelines or even sell right now:
1. High “Momentum Risk” and Overextension
Gold has surged roughly 12% in the first three weeks of January 2026 alone, coming off a 65% gain in 2025. In technical terms, the market is “overbought.”
The Danger: When an asset moves this far, this fast, it often experiences a “mean reversion” (a sharp drop back to a more average price).
Wait for the Gap: Historically, buying at the absolute peak of a vertical rally is high-risk. Many traders are waiting for a correction toward the $4,500-$4,600 range before entering.
2. “Demand Destruction” in Jewellery and Physical Markets
At nearly $5,000 per ounce, physical demand for gold jewellery is cratering. In major markets like India and China, the high cost is discouraging everyday buyers.
If central bank buying (the current main driver) slows down even slightly, there isn’t enough retail “jewellery” demand to hold the price up, which could lead to a significant price dip.
3. The “Profit-Taking” Catalyst
Because so many people saw massive gains in 2025, there is a huge amount of “unrealized profit” sitting in the market.
Any sign of good news (e.g., a de-escalation in the Greenland dispute or a peace deal in Eastern Europe) could trigger a massive wave of selling as investors “lock in” their wins. This could cause a “flash crash” where the price drops hundreds of dollars in a single day.
How to Maximize Your Selling Price for Gold
To ensure you get every dollar your gold is worth, follow these six steps:
- Check the Daily Spot Price: Know the market before you walk in the door.
- Understand Your Purity: Look for hallmarks (10K, 14K, 750) on your jewellery.
- Avoid High-Fee Buyers: Some “pop-up” buyers at hotels or malls take large commissions.
- Bring Documentation: Appraisals or original receipts can help, especially for designer pieces.
- Shop Around: Get at least two quotes.
- Bullion vs. Jewellery: Bullion (coins/bars) usually fetches a price closer to the spot than jewellery, which requires more labour to refine.
Should You Sell Your Gold Now? Decision Checklist
Ask yourself these questions before parting with your assets:
- Do I have an immediate financial need? With gold at record highs, now is an excellent time to liquidate for cash.
- Is it an heirloom? If the piece has sentimental value, the “emotional price” might be higher than the market price.
- What is the opportunity cost? Could the money from your gold perform better in another investment, or do you prefer the safety of the metal?
Common Mistakes People Make When Selling Gold
- Assuming Jewellery Value = Gold Weight: If your ring has heavy gemstones, a buyer will deduct their weight to find the “melt value” of the gold.
- Not Comparing Buyers: Selling to the first person you see can cost you hundreds of dollars.
- Ignoring the “Spread”: Understand that no buyer can pay 100% of the spot price; they must make a small percentage to stay in business.
Where to Buy or Sell Gold with Confidence? Samuel Kleinberg
Since 1968, Samuel Kleinberg Jewellers has been a pillar of trust in the Toronto jewellery market. Whether you are looking to invest in a new piece or capitalize on high-selling gold prices, we provide a transparent, professional experience.
- Expert Appraisals: We use precise testing methods to determine the exact purity of your gold.
- Fair Market Value: Our pricing is tied directly to the current global spot price.
- Flexible Options: Trade in your old gold for instant cash or apply the value toward a stunning new custom-designed piece.
Gold remains one of the most reliable assets in any economic climate. Whether you are looking to buy as a hedge against a volatile 2026 or want to take advantage of record-breaking selling gold prices, the key is education and choosing a partner you can trust.
Book an appointment to learn more about buying or selling gold.
FAQs
Is now a good time to buy gold for investment?
While prices are at all-time highs, many experts believe the bull market will continue through 2026 due to falling interest rates and global uncertainty.
How do I check today’s gold price?
You can check live “Spot Price” tickers on financial news sites or visit our showroom for a real-time quote.
What is the difference between spot price and selling price for gold?
The spot price is the wholesale market rate for pure gold. The selling price for gold is what a consumer receives after purity adjustments and the buyer’s small processing fee.
Does selling gold jewellery get the same price as bullion?
Generally, bullion fetches a slightly higher percentage of the spot price because it is already pure and doesn’t require the same level of refining as jewellery alloys.