Handling Consumer Expectations in the Middle of Peak Precious Metals Market Volatility

News publication Kiplinger recently interviewed Ross Metals’ VP Ian Ross about whether or not it’s a good idea to sell old silverware and gold jewelry during the recent price rallies in the precious metals market. But what does that mean for jewelers, refiners, and other industry insiders, and how can all this craze be managed in terms of consumer expectations? 

Precious metal prices have seen a lot of volatility in the past couple of years, and some consumers are logically going to want to make the most out of it. For us in the industry, especially those who deal with potential gold and silver sellers, this means consumer expectations must be managed carefully in a volatile price environment paired with media hype and industry pressure.

The heightened consumer interest can be a double-edged sword for jewelers, refiners, and wholesale buyers. On the one hand, it’s an opportunity for increased traffic and sales. However, the hype can also lead to mismatched expectations.

What does this current volatility hold for the jewelry community, and how do we handle consumer expectations around selling or buying gold and silver items? We’re breaking down different perspectives and trends, in pursuit of a better understanding of what customer service should look like in the middle of all this precious metals market turbulence.

How Consumers Are Reacting To Volatility

• Increased volatility, bullishness, and media attention for gold and silver is driving precious metal retail activity, both in buying and selling.

• Many who are new to precious metal selling have expectations that may lead to disappointment when they go to sell.

Gold and silver have always been seen as worthwhile investments. Before this boom, however, we didn't see that much interest outside of certain circles. This time, it's different.

Consumers from different walks of life, even those who usually wouldn't think about things like gold and silver futures, are starting to take a second look at the precious metals in their possession. A lot of professionals in the jewelry and pawning spaces are seeing upticks in people trying to sell them stuff.

Gold has been seeing a lot of volatility these past couple of years, with some periodic spikes and an unprecedented surge throughout 2025, especially. According to the BBC News, gold prices jumped by more than 60% from January to December 2025.

A lot of factors have contributed to this, including inflation fears, geopolitical instability, central bank buying, and speculation. Consumers, however, are also driving this sentiment, with some retailers selling out of bullion like never before.

Silver is seeing even more volatility. According to J.P. Morgan, it experienced a 130% jump over the past year. At present, both gold and silver prices are cycling through volatile increases and decreases, depending on market factors, but some analysts believe that this historic rally is far from over. In fact, some are predicting gold to reach $6000 by the end of 2026 or early 2027. Similar bold predictions have also been made for silver.

These surges in precious metal prices have not gone unnoticed. This knowledge is reaching ordinary consumers in real time, as they consume financial news more. Many people are taking a second look at what they have in their jewelry boxes for the first time in a long time. More and more items like broken or outdated jewelry, gold chains they don’t wear anymore, heirloom pieces, and inherited silverware are being brought in for appraisals, selling, and refining.

Many people turn to pawnshops, but an increasing number are coming directly to jewelers and wholesalers in hopes of getting more for the melt value of their gold or silver. This is where expectations typically clash. Armed only with what they’re hearing from the news, it’s not uncommon for first-time gold or silver sellers to vastly overestimate what they expect to get from their pieces and end up getting disappointed as soon as they get the assay.

Why Skyrocketing Prices Can Be Misleading

The news cycle around precious metal prices doesn’t give consumers a complete picture of how pricing works in practice. A lot of consumers can be misled because they see a spot price listed on a credible website, weigh their jewelry, and take it somewhere expecting to get that price for it. In reality, a lot of variables contribute to spot prices, and it's unrealistic and unprofitable for businesses to buy small quantities from consumers at or near that value.

• Spot Price vs. Retail Value

This is a common confusion among gold/silver beginners. Some people think that the spot price they see quoted on the news is what they’re going to get for their pieces. For gold, spot value is based on 24K, or pure gold. Most jewelry is 10K, 14K, or 18K. The same goes for silver. Spot value is always based on pure silver, but no one makes silverware in pure silver. It's almost always sterling silver, which is made of 92.5% pure silver. This makes a huge difference when calculating melt value, leaving many sellers with high hopes disappointed.

• Deductions

Many jewelry owners don’t factor in deductions when estimating the value of their pieces. When selling gold or silver for melt to a jeweler or wholesaler, some deductions apply, like the weight of stones and other attachments, deductions on alloy content, refining fees, and buyer’s margin. Taken together, these deductions can significantly reduce expected payouts.

• Emotional Value vs. Melt Value

A lot of the time, selling may not even be the best course of action for the owners of gold jewelry or silver flatware. Even if the offer is fair, sellers may still end up feeling that they’ve been lowballed if they consider how much emotional or sentimental value their pieces hold. Refiners only pay for metal content, after all.

For jewelers and others in the industry, mismatched expectations are a sticking point that needs to be addressed, as well as an opportunity to educate consumers. The process may be tedious and sometimes even outright frustrating, but bridging the gap between sellers’ expectations and industry realities may be exactly what we need to drive more transactions built on trust and integrity.

What Jewelers Need to Tell Their Customers

Volatile markets drive traffic into shops and, while this puts a lot of pressure on the industry, it's a great opportunity to educate sellers and turn them into potential buyers. In a volatile market, opportunistic buyers flood the market to take advantage of uneducated gold or silver owners. Being a buyer who tells their sellers the real score and painstakingly educates them on the nuances can be the key differentiator that sets trustworthy jewelers and refiners apart.

Communicating openly and routinely with clients is the core of managing their expectations during these volatile times. Here are some things that we think should be included in all conversations with potential gold and silver sellers:

• Explain the Math

There is a good chance that people selling gold or silver for the first time may not fully understand what goes into pricing individual jewelry or flatware pieces. Explaining the math in front of them may seem like a tedious task, but it helps take emotion out of the conversation. When the seller sees the numbers for themselves, it may help ease their worries of being lowballed or preyed upon.

• Melt vs. Resale

A lot of sellers need guidance on whether selling for melt or selling “as is” is the best option for them. The news cycle around periodic surges in precious metal prices creates a narrative that favors selling for melt. What many sellers don’t know is that they may get an even better deal for their pieces if they sell them as is, under the right conditions. Some items may be worth a lot more than their melt value, including vintage silverware, designer pieces of gold jewelry, and diamond-bearing pieces. Jewelers and refiners with a high sense of consumer ethics may opt to refuse a transaction if they could direct the seller to another channel where they could get the most out of their piece.

• Selling vs. Buying vs. Speculating

Selling is not necessarily the only way to make the most out of the value of jewelry or silverware, even when gold and silver prices reach unprecedented highs. For many, it may look like a quick payout, which can be true. However, some people might get the chance of winning even more by buying instead of selling. It’s important to encourage them to consider whether they consider gold as an investment or more of a wearable asset. It’s also good to clarify whether they are prepared to take calculated risks and ride out the volatility for just a little bit longer in hopes of higher returns.

On the flip side, it’s also important to offer words of caution against speculation. Some sellers may hesitate to sell if they think they can “time the market” for an even better deal. It’s important to explain that gold is cyclical and that volatility cuts both ways. The levers contributing to today’s surge may suddenly cause a reversal that might ultimately lead to remorse. 

In Conclusion:

From what we're seeing, this recent rally in precious metal prices may decelerate but the trend is unlikely to reverse overall. Even if it does, eventually, volatility is still going to be the rule, not the exception, in these markets. As jewelers and other professionals in the precious metals industry,  we should expect people to approach us to sell us their items, armed with expectations that may or may not hold up, but this presents an opportunity to educate, build a relationship, and grow your customer-base. At Ross Metals, we believe that it is good business to educate customers, even if that means losing a deal in the short term. At the end of the day, being a trusted expert is going to do more for your business than an immediate sale will. Among other things, this volatility could function as a litmus test that will eventually tell consumers who they can trust.