Gold prices have surged by over 40% in the past year, and experts believe they could climb even higher. John Vennavally-Rao reports.
Gold prices have soared to unprecedented levels, surpassing $4,200 per ounce, as economic uncertainty grips global markets. Just a year ago, gold traded at around $2,800, marking a sharp 45% increase. The surge is driven by investors seeking a safe haven amid geopolitical tensions, trade concerns, and inflation fears.
Why Is Gold Becoming So Expensive?
Max Smirnov, owner of Global Bullion Suppliers in Toronto, has never seen such high demand for gold. He says buyers are rushing to invest, believing prices will continue to climb. Since the start of 2025, gold prices have jumped 12%, fueled by economic instability and growing fears about the future.
Experts link this spike to multiple factors. The re-election of U.S. President Donald Trump and persistent trade conflicts have unsettled investors, while wars in Ukraine and the Middle East have further stoked market fears. Central banks, worried about inflation, are also buying up gold to hedge against financial instability.
Gold Prices Are Pushing Jewelry Costs Up
The rising value of gold isn’t just affecting investors—it’s driving up the price of jewelry too. Allen Ash, who works in the jewelry division at Muzeum, notes that a 10-karat gold bracelet that once sold for CAD $3,900 is now priced at over CAD $10,300.
"In just a year or so, the price has skyrocketed," Ash explained. “Gold jewelry is now a luxury many people can’t afford.”
Will Gold Prices Keep Rising?
According to Goldman Sachs analysts, gold could reach US$3,100 per ounce (approximately CAD $4,400) by the end of the year. If trade conflicts escalate, it might even hit US$3,300.
However, finance expert William Huggins warns that gold investments aren’t always foolproof. After the 2008 financial crisis, gold initially surged by 50%, only to drop from US$1,800 to US$1,100 within four years. He reminds investors that, like stocks or real estate, gold values can fluctuate.
Despite this, gold remains a popular investment. Retailers like Costco have even started selling gold bars, making it easier than ever for individuals to invest in the metal.
Should You Buy or Sell Gold Now?
With prices at an all-time high, investors face a tough decision—sell now and lock in profits or buy more, hoping for further gains. Smirnov believes both arguments have merit.
“Some say this is the perfect time to cash out,” he said. “Others think prices will go even higher. Time will tell.”
One thing remains certain—gold has stood the test of time. “It might rise and fall,” Smirnov said, “but it will never be worthless.”
