Why Are People Selling Their Gold? The Answer May Surprise You

DoganKutukcu / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

When you look through your gold jewelry, do you see precious treasures, padding for your retirement or something else?

In June 2025, Cash for Gold USA surveyed around 1,000 customers who sold their gold to the company. Keep reading to learn the most popular reason for the sale and what experts have to say about current gold market trends.

Key Survey Findings

The survey painted a bleak financial picture. Here are some of the most significant findings:

• More than 68% of gold sellers used the proceeds to cover bills or groceries, underscoring the impact of the current economic climate on many consumers.
• Roughly 70% of sellers received $500 or less for their gold, indicating the transaction was for short-term cash flow, not long-term financial security.
• More than 50% of sellers reported being employed, highlighting that many jobs don’t pay enough for workers to make ends meet.
• A quarter of sellers said they’d sell more gold in the future, suggesting that some customers may not be optimistic about their financial situation moving forward.

What Experts Say About These Findings

“I really think this story captures ongoing tension people have had post-COVID,” said Brady Lochte, financial advisor and founder at Axon Capital Management. “Asset values keep going up and so does the cost of simply living. Groceries, childcare, insurance and housing take up a larger share of income each month, leaving less room to enjoy those gains.

“When everyday expenses rise alongside investments, higher account balances can feel more abstract … reassuring on a statement, but far less tangible in daily life. Gold’s scarcity and history as an inflation hedge have pushed prices higher, but the irony here is that rising living costs are forcing people to sell it,” he continued.

Ian Ross, vice president of operations at Ross Metals, has firsthand knowledge of this gold market trend. He said, “As a gold buyer, I have seen people sell their gold out of necessity, much more than to try to make a profit or to spend it on non-essential purchases. For example, you wouldn’t sell your great-grandmother’s unused gold jewelry unless you need the money!”

What Else Is Happening in the Gold Market

While these survey results suggest that some consumers are selling gold to stay financially afloat, they don’t tell the whole story. Joshua D. Glawson, content manager at Money Metals, said some gold owners are selling due to the commodity’s record-breaking price.

In addition, some “are selling their gold [in] fear of an economic crash. Will the market crash? I don’t know, but signs are there and some people who own gold believe so,” Glawson said.

It’s also important to note that there are still buyers in the market, too. The biggest buyers are central banks that store the precious metal in vaults, said Vince Stanzione, trader, investor and author of The Millionaire Dropout.

However, some individual investors are also putting their money into gold. “You can buy and sell gold via your brokerage account using an Exchange Traded Fund (ETF). The most popular is GLD — SPDR Gold Trust,” Stanzione said.

So, why are buyers buying? “It’s a loss of faith in paper money (fiat currency). Gold keeps pace with inflation and gold retains its value and more and more Americans are realizing this,” said Stanzione.

Share This Article: