Record-breaking gold prices have captured headlines on both sides of the border, but a new survey out of the United States reveals a surprising reality behind consumer behaviour. According to Cash for Gold USA’s June 2025 findings, Americans aren’t cashing in on gold’s historic highs for luxury purchases or investments — they are selling out of financial necessity.
Financial Pressures Reshaping the U.S. Gold Market
The survey of 1,002 customers shows that nearly seven in ten Americans used the money from selling their unused jewellery, coins, and watches to cover household essentials rather than to profit from record-high prices. More than half of respondents reported using the payouts to pay bills, while a significant portion directed funds toward groceries and other basic needs.
Despite gold climbing by nearly $1,000 per ounce over the past year and surpassing $3,300 an ounce, just over 13 percent of respondents said high prices motivated their decision to sell. Instead, financial strain was the driving force: respondents cited job loss, mounting medical bills, divorce, and rising living costs as reasons behind their choice. For many, the payouts were modest, with nearly 70 percent receiving $500 or less.
Barry Schneider, co-founder of Cash for Gold USA, called the results “unexpected,” noting that his company anticipated more sellers would be motivated by market highs. “We expected more people to tell us they were selling because gold prices are so high,” he said. “But these numbers suggest that for many households, gold is becoming a financial safety net.”
Canada’s Similar Pressures Emerging
While there is no comparable nationwide survey in Canada to measure why consumers are selling gold, current economic indicators point to a similar pattern taking shape. According to the Bank of Canada’s Q2 2025 Survey of Consumer Expectations, Canadians are feeling heightened financial strain. Household spending on essentials such as food, shelter, and utilities continues to rise sharply, and Statistics Canada reports that average household expenditures have climbed close to $81,000 annually, a six percent increase since 2023.
This inflationary pressure is weighing heavily on discretionary spending, and jewellery is among the most affected categories. Consumers in major metropolitan centres such as Toronto and Vancouver — where housing costs remain among the highest in the country — are showing more caution when it comes to big-ticket purchases. Confidence in financial stability is also slipping, leading households to prioritize necessities over luxuries.
While Canadians have not yet embraced cash-for-gold solutions at the same scale as Americans, the economic backdrop suggests it may become increasingly common as consumers look for short-term relief from persistent cost-of-living pressures.
Strategic Opportunities for Canadian Jewellers
For Canadian jewellers, these shifting dynamics present both challenges and opportunities. Cautious consumer behaviour means retailers must rethink their approach, balancing aspirational luxury with value-driven messaging that resonates with today’s buyer. Jewellers may need to diversify product assortments by offering affordable luxury pieces while maintaining quality and design integrity.
Equally important is the opportunity to build trust through transparent gold-buying services. As more consumers consider selling unused gold and jewellery, jewellers are well-positioned to act as knowledgeable, reputable partners, educating customers on valuation, karat purity, and market pricing. By presenting clear, fair offers, jewellers can foster stronger customer relationships while opening doors to new revenue streams.
Trade-in programs represent another growth avenue. Allowing clients to put the value of their old gold toward new purchases helps address their immediate financial needs while driving sales. This model effectively connects necessity with renewal, creating a more sustainable, consumer-centric jewellery experience.
The Takeaway for the Industry
The U.S. survey underscores a significant shift in how consumers view gold. Once considered a long-term luxury asset, gold is increasingly seen as a practical financial resource in times of economic stress. For Canadian jewellers, the message is clear: adapt early, lead with transparency, and align offerings with consumer realities.
As inflation, rising housing costs, and tightening household budgets reshape spending priorities, jewellers who embrace flexible pricing, fair gold-buying practices, and innovative trade-in programs will be best positioned to navigate this changing landscape.
Gold may be hitting historic highs, but for many consumers, its real value lies in the financial breathing room it provides. For jewellers, understanding this shift is critical to staying relevant, competitive, and trusted in today’s marketplace.
Gold Under Pressure: U.S. vs. Canada
The U.S. Snapshot — June 2025
According to a nationwide Cash for Gold USA survey:
- 68.4% of Americans selling gold used payouts to cover essentials — bills, groceries, and rent.
- Only 13.5% sold because of record-high prices, despite gold exceeding US$3,300 per ounce.
- Nearly 70% received US$500 or less, signalling short-term relief rather than profit.
- 55% reported moderate to high financial stress, and 28.6% reported mild stress.
- Fewer than 9% spent their payouts on luxury items, like vacations or electronics.
“Gold is becoming a financial safety net for American households,”
— Barry Schneider, Co-Founder, Cash for Gold USA
Canada’s Emerging Trends — 2025
While Canada has no equivalent nationwide survey, economic indicators suggest similar behaviours may be on the horizon:
- Household budgets are tightening. According to Statistics Canada, average household expenditures are projected to reach C$81,000 annually, up 6% since 2023.
- Consumer confidence is slipping. The Bank of Canada’s Q2 2025 survey shows fewer Canadians plan to spend on discretionary items like jewellery and luxury watches.
- Rising essentials drive financial stress. Housing, food, and utilities continue to climb, especially in major urban centres like Toronto and Vancouver.
- Industry experts anticipate increased gold-selling activity as Canadians seek short-term relief similar to their U.S. counterparts.
