Article

Gold Prices Are High, But Why Aren’t People Selling?

We are living in an era not many would have predicted, where we witnessed the dramatic surge of gold prices in such a short span of time. Since 2025, gold has increased more than 40%, reaching an all-time high of USD5608.35 per troy ounce in January of 2026.Source: goldprice.orgWith prices at these levels, those who bought gold jewellery and heirlooms in the past have truly “struck gold”. You may think many would cash out and lock in the profits at this time, but what readers have told us tells a different story. Most revealed that they are planning to keep it for the long term instead.​​​So why are many of you reluctant to sell, even after you are aware of the record highs? Let’s explore the reasons behind this sentiment.1. Gold is still a stable asset that provides securityAlthough gold prices may appear volatile now, the precious metal has consistently proven its role as a reliable hedge that moves mostly independently from other assets such as stocks and options. Its ability to preserve its value, especially during periods of economic uncertainty, continues to give its investors a sense of security. For instance, investment demand for gold spiked when the stock market collapsed back in 2007. The precious metal nearly doubled in value between 2007 and 2011, as investors sought safety and stability for their money. Similar to the 2008 financial crisis, gold reached an all-time high during the COVID-19 pandemic, as markets were gripped by fear and uncertainty. Furthermore, gold carries a cultural and emotional value which may be the other reason why people are reluctant to sell. Some of them are heirlooms passed down through generations, carrying significant meanings that outweigh their monetary value. Therefore, many still view gold jewellery as a meaningful keepsake that can preserve and potentially grow in value over time.2. Fear of getting the timing wrongAnother reason why many are unwilling to sell their gold jewellery is the fear of selling at the wrong time. Investors earn their most ideal returns by choosing the right timing to sell their assets, preferably at an all-time high. However, it is not easy to predict the market, even with a safe haven asset like gold. Selling assets at peak sound like a clever idea, but peaks are only obvious after they pass, which may cause investors regret for selling too late or too early. So, many investors end up with regret aversion bias: the tendency to avoid decisions that could later cause regret, even though those decisions are rational or beneficial. By delaying their decisions to buy or sell, they could avoid the disappointment of missing out on higher returns all together. But inaction will not solve the problem, as these investors may miss out on good opportunities or hold out on investments that can end up becoming bigger losses. There are ways to overcome this bias, so investors can avoid letting emotions drive their decisions. They can set up a rules-based strategy based on their own financial goals—that means decide how much to invest, what to invest in, and when to buy or sell in advance. For instance, some choose to cut their losses if a stock drops 20-30% as their sell rule. Diversifying assets can also reduce the emotional weight of any one decision by spreading the risk. As gold is known to be a hedge, other stocks tend to rise when gold experiences a drop or grows more slowly.3. “Just in case I need it for later” mindsetBecause gold is a relatively stable asset that holds its value, many view it as a form of emergency fund for the future. The future can unpredictable, and there may be times when we encounter one or two crisis that demand urgent cash. Gold’s intrinsic value makes it a consistently sought-after commodity, so you don’t have to worry about finding a buyer. One story that comes to mind is of an acquaintance who had to fund his sister’s medical treatment while struggling to afford that month’s mortgage. He eventually had to rely on gold heirlooms passed down from their mother to cover both, and it worked out well. As you can see, most would only consider selling their gold jewellery when they are forced to. It’s not a lack of an investor mindset, but gold simply serves as a contingency plan for others. When should you sell?With all things said and done, when should you sell your gold? It depends on what purpose your gold serves. If you wear gold jewellery frequently, its value is mostly aesthetic. But if you’re holding gold as an investment, you need to set clear priorities and decide when to sell based on your financial goals. There are cases where investors sell their gold to buy houses, viewing the two as interchangeable forms of wealth. Meanwhile, some would sell just to redirect the money into another high-yielding, promising stock. To make it easier to understand, here are a few reasonable situations where selling your gold might make sense:You’re short on cash and need immediate liquidityGold prices are favourable and align with your financial goalsYou want to reallocate funds to pay off high-interest debtsHow you decide to use your gold comes down to knowing your goals!