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Investments in gold have also been driven by other factors over time. Over recent years, there’s been strong gold demand from central banks around the world — particularly amid heightened geopolitical tensions, such as the ongoing wars in Gaza and Ukraine.

And on Wall Street this week, several regional banks saw sharp losses amid scrunity over quality of loans, although recovery seemed to be steadying the market on Friday. Meanwhile, investors appeared to be distancing themselves from riskier assets like cryptocurrency — with bitcoin, for example, down 2.67%.

What about jewelry?

Many jewelry merchants and dealers have increasingly reported surges in customers looking to check the value of gold they own — sometimes opting to melt or sell family heirlooms to cash in on the precious metal’s rising price.

At the same time, those in the market for gold jewelry may be feeling “sticker shock” if they can’t afford certain products anymore — particularly if it’s something impacted by both rising material costs and tariffs.

Larger retailers like Pandora and Signet have acknowledged these headwinds in recent earnings calls.

Is gold worth the investment?

Advocates of investing in gold call it a safe haven — arguing that the commodity can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road as a hedge against rising inflation. Some also take comfort in buying something tangible that has the potential to increase in value over time.

Still, experts caution against putting all your eggs in one basket. And not everyone agrees gold is a good investment. Critics say gold isn’t always the inflation hedge many claim — and that there are more efficient ways to protect against potential loss of capital, such as derivative-based investments.

The Commodity Futures Trade Commission has also previously warned people to be wary of investing in gold. Precious metals can be highly volatile, and prices rise as demand goes up — meaning “when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers,” the commission noted.

Gold demand escalates mercury poisoning warnings

The frenzy for gold has also resulted in health and environmental consequences — with officials pointing to rising demand for mercury, a toxic metal that is key in illegal gold mining worldwide.

Mercury is widely used to separate gold during artisanal or small-scale mining. But it pollutes water, accumulates in fish, makes its way into food and builds up in people’s bodies, leading to neurological and developmental harm. Even small-scale exposure can carry serious risks — putting in danger workers who rely on the industry, as well as residents in affected areas more broadly.

The Associated Press has reported about the effects of mercury poisoning tied to gold mining in countries like Senegal, Mexico and Peru, among other parts of the world.