--- title: Has Gold Lost Its Gleam? Why Sellers Are Flooding the Market description: Americans are selling so much gold that it's skewing the market. authors: - name: Martha C. White role: Writer url: https://money.com/author/martha-c-white/ education: BA, English, Princeton University at_money_since: 2015 articles: 350 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology editors: - name: Jordan Chussler role: Editor, Investing and Banking url: https://money.com/author/jordan-chussler/ bio: Jordan is an investment editor and CPFC who specializes in traditional equities, gold and other precious metals, retirement savings and income investing. He combines his personal and professional interests in finance and education to help readers increase their financial literacy and make better investment choices. education: Lynn University certifications: Certified Personal Finance Counselor at_money_since: 2023 articles: 131 covers: - Investing - Banking - Credit - Credit Cards - Economy and Politics - Housing - Identity Theft - Insurance - Loans - Mortgages - Personal Finance - Professional Services - Retirement also_seen_in: - Weiss Ratings - 24/7 Wall Street - Better Investing - Yahoo Finance - Nasdaq - Investing.com - Marketbeat - MSN Money social: - https://www.linkedin.com/in/jordan-chussler-b3597811/ published: '2025-07-09T15:46:40.000Z' modified: '2025-07-09T15:46:40.000Z' section: Investing word_count: 765 canonical: https://money.com/has-gold-lost-its-gleam-why-sellers-are-flooding-the-market/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Close-up of hands catching falling gold coins](https://img.money.com/2025/07/News-Americans-Rush-Sell-Gold.jpg) As the [price of gold](https://money.com/what-drives-the-price-of-gold/) lingers near its all-time high, an increasing number of Americans appear to be [cashing out](https://www.bloomberg.com/news/articles/2025-06-28/americans-cash-out-on-gold-coins-as-asian-investors-bulk-up). Unfortunately, when investors decide to dump their precious metals at the same time, gold dealers aren’t willing to pay a premium. The yellow metal has been riding a rally for much of 2025 and hit a record-breaking [$3,500.05 in April](https://goldsilver.com/industry-news/article/gold-hits-3500-why-gold-is-up-33-ytd-and-whats-next/) as anxiety about President Donald Trump’s “Liberation Day” tariffs sent investors fleeing a volatile stock market in favor of safe-haven assets. As of press time, gold has gained 39.36% this year, compared to the [S&P 500](https://money.com/what-is-the-sp-500-index/)'s 6.39%. With stock market volatility down 68% from its year-to-date high, investors are transitioning back to higher-risk assets. But those looking to sell their gold may be in for a rude surprise. ## Make sure your hard-earned money is protected with a Gold IRA ### Gold IRAs help you protect your investments by providing the asset diversification and stability you need. Click on your state to get started. [Invest in Gold](https://money.com/pr/ued87e7966ca?ap_referrer=%2Fhas-gold-lost-its-gleam-why-sellers-are-flooding-the-market%2F) “It's a function of supply-demand dynamics,” says Philip Newman, managing director at research and consulting firm Metals Focus Ltd. When demand was hot, gold dealers would pay a premium for gold bars or coins because they knew they could quickly resell them at an even higher price. Today, that dynamic has reversed; although the value of gold is high, so many people are looking to sell right now that [dealers](https://money.com/best-online-gold-dealers/) might only willing to buy it back at — or even below — the [spot price](https://money.com/how-much-is-an-ounce-of-gold-worth/) of the metal. “If you're a dealer in the secondary market, you adjust how much you're willing to pay by how quickly you can shift it,” Newman says. “If the market is weak, then the price you quote could be a smaller premium or even a steeper discount.” While not unheard of, this dynamic — which means that sellers are, in effect, paying a fee to offload their gold — is atypical, says Alex Ebkarian, COO of Allegiance Gold. “This is a rather uncommon phenomenon,” he says. ## Why is gold sentiment falling? As a commodity, gold has intrinsic value. As an asset, its appeal is also psychological, says Oliver Blagden, gold and base metals analyst at CRU International Ltd. “Gold demand is predominantly driven by sentiment — particularly among retail investors,” he says via email. Most Americans who [buy physical gold](https://money.com/how-to-buy-gold/) are located in red states, he points out. Optimism about President Trump’s policies and expectations of economic growth could be nudging some of these investors out of gold and into equities in anticipation of a rising stock market. From this point of view, “Now is a good time to sell their gold and invest back into capital markets,” Blagden says. Another big reason why so many people are selling their gold right now is because prices skyrocketed so fast and so high that people who bought gold two or three years ago are still making a nice chunk of change on their investments. “You have your profit takers \[who\] got in at $1,700, $1,800 — they pretty much doubled their money,” Ebkarian says. Ebkarian also says the 2023 entry of warehouse chain [Costco’s entry into the gold market](https://money.com/costco-is-selling-out-of-gold-bars/) played a role. Its one-ounce gold bars have been so popular that the company [tightened](https://money.com/costco-limits-gold-sales/) purchase restrictions in May. Most businesses that sell gold to retail investors also buy it back; Costco — which doesn’t buy back gold — scrambled that model. “When Costco flooded the market with gold, people were able to buy your generic products,” he says. “Because Costco is not buying back, there was an uptick in retail investors who were selling part of their metals. Because of that, premiums are not attractive right now.” ## What’s ahead for gold prices in 2025? Ebkarian says that secular trends such as rising government debt and [central banks’ gold-buying](https://money.com/central-banks-gold-buying-spree/) are bullish for gold in the long term. “Gold is going to respond positively to those driving forces, but in the short term, you are going to see some fluctuations,” he predicts, forecasting some volatility over the next three to six months. Elevated gold prices could support a continuation of retail investors selling off some of their holdings, according to Newman. “Overall, we think prices will remain strong, and that will encourage some liquidations.” Lingering inflation fears and the erosion of the [dollar’s value](https://money.com/us-dollar-value-crashing/) could also prompt retail investors to sell their gold when prices are high, as they are right now. “You can understand why many retail investors may be keen to exchange their gold for large amounts of cash,” Blagden says. “Many will view the high prices too tempting to pass.” ## In times of market volatility and uncertainty, Gold has performed historically well ### By diversifying your retirement portfolio with a Gold IRA, you can potentially safeguard your savings from market fluctuations and other financial risks, and enjoy greater peace of mind knowing that your funds are well-protected. Click below to start investing. [Invest in Gold](https://money.com/pr/l56a2684df33?ap_referrer=%2Fhas-gold-lost-its-gleam-why-sellers-are-flooding-the-market%2F) ![](https://s3.consumersadvocate.org/prd/image/image/19305/medium_414558a1-29d4-465e-b5d1-921febc39ed2.png) American Hartford Gold can help you take control of your financial future [Invest in Gold](https://money.com/pr/cdf8db27d320?ap_referrer=%2Fhas-gold-lost-its-gleam-why-sellers-are-flooding-the-market%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/has-gold-lost-its-gleam-why-sellers-are-flooding-the-market/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Gold", "item": "https://money.com/gold/" }, { "@type": "ListItem", "position": 4, "name": "Has Gold Lost Its Gleam? 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