Gold and Greenland: Why Prices Spiked Overnight — and Why Retailers Should Pay Attention

Gold surged to a record high yesterday, briefly reaching $4,898 per ounce. The rally was tied to headlines that, just hours later, appeared to soften when President Trump walked back threats involving tariffs and Greenland. Prices eased by about $100 by the end of Wednesday.

The immediate catalyst for Tuesday’s and Wednesday’s gold price spikes was renewed concern over U.S. trade policy and geopolitical tensions after comments from the White House raised the specter of tariffs and instability. But today’s gold market isn’t just reacting to a single headline — it’s responding to a structural shift in how investors, central banks, and consumers view risk, currency stability, and hard assets.

Gold remains the world’s fastest “risk-off” asset. When uncertainty spikes, large pools of capital rush in. That’s why prices jumped so quickly over the last two days.

When President Trump later ruled out using force in Greenland and dialed back tariff threats, the dollar strengthened and gold pulled back modestly. But the key point for retailers is this: The pullback was relatively small compared to the run-up. That means it’s part of a long-term trend, not merely a blip on the radar.

However, it’s not a time to panic, but rather to adjust expectations. Higher prices can slow volume, but they also reinforce gold’s value perception in jewelry.

Inventory strategy matters more than ever. Volatility increases the importance of disciplined buying, margin protection, and clear pricing communication with customers. As Susan Eisen of Susan Eisen Fine Jewelry & Watches in El Paso, TX, said, “The gold price hike has put us in a tailspin with pricing and estimates. On the other hand, it has encouraged people to sell their gold and bring it in for redesign or credit. So, it is a mixed bag, but we are making it work!”

Marc Majors of Sam L. Majors in Midland, TX, has seen repair clients reacting most to the rapidly rising price of gold. “It’s a real challenge to explain to customers why repairs on their jewelry are triple what they were a year or two ago. We definitely get a lot of people now that will price shop us on repairs because they don’t understand why we charge so much. The majority of the time, they’ll come back because they realize it’s this expensive everywhere.”

Brenda Newman of The Jewelry Source in El Segundo, CA, says it’s really just more of the same: Clients always want cheaper prices. “The price of gold is a problem that we all work very hard to overcome when speaking to our clients on a daily basis. But in all honesty, that same conversation has always been a part of this industry where every client seems to complain about jewelry prices and they all want a ‘deal.’ I would say the most pushback we receive would be for the basics like gold chains and earrings; this is where the higher prices are most obvious. That said, we had our second-best year last year, and so far, January 2026 is ahead of last year. I really don’t foresee our business struggling in the near future.”

Jim Tuttle of Green Lake Jewelry Works in Seattle and Bellevue, WA, says that as gold has risen, their team has endeavored to shift customer focus to the value of skilled labor. “When gold prices jump, we keep our focus on what we do best: custom craftsmanship. Because our business is built on labor more than metal margins, we use a unique markup algorithm to make sure we stay more competitive than the big players. We also train our team to help clients understand that while we don’t control the gold market, we can control the value of the artistry we provide. It keeps the conversation friendly and the focus on the piece, not just the price.”

Some tips from Tuttle:

• Lead metal price conversations with the fact that the jewelry industry doesn’t drive metal prices.
• Note that our specialty is doing high skill craftsmanship, so the total price of most of our work doesn’t jump that much when metals go up.
• Be honest about the fact that simpler pieces (bands, chains, etc.) have to increase as the cost of the piece is more directly tied to metal prices.

At the end of the day, the market is signaling that gold’s role as a financial anchor is stronger than ever. For jewelry retailers, that means planning for continued high prices — and recognizing that today’s volatility is less about panic and more about a redefinition of value in an uncertain world.