Gold prices near all-time highs, driving buying and selling in Coachella Valley

PALM SPRINGS, Calif. (KESQ) - The price of gold is hovering just under $3,000 an ounce, sparking a wave of buying and selling across the Coachella Valley.

“Gold isn’t always acting like it should be lately,” said James Fausett, owner of J&J Gold Buyers. “Normally when the stock market is down, gold surges. It’s considered a safe haven.”

Fausett says gold has more than doubled in value over the past few years.

“A few years ago, actually, before COVID, gold was trending between 12 and $13,00 dollars an ounce. So it’s doubled—more than doubled,” he said.

While many sellers are cashing in, Fausett notes that the market could shift again.

“I wouldn’t be surprised if it drops a little bit,” he said. “It may go down, but it won’t collapse.”

At Precious Metals Refinery, district manager Rony Tennenbaum said current gold prices reflect broader economic uncertainty.

“Right now, there’s a bit of instability in the world—in stocks and in economy and in politics,” Tenenbaum said. “We’re seeing just a crazy going up and down.”

Tenenbaum described 2023 as a major growth year for gold.

“Last year, we started the year at 2,000 and ended the year at 2,700. That’s 30% in a year.” he said. “This year also, we’ve reached the 3,000. We’ve exceeded the 3,000. We made it almost to 3,200 at a certain point.”

He said volatility is creating movement on both sides of the counter.

“We see a lot of people that have their gold from the ’70s, ’80s, ’90s—they’re cashing out,” Tennenbaum said. “On the flip side of that, we’re getting investors, people that want to diversify their portfolios that are looking to get into gold.”

He added that gold’s universal value makes it appealing in times of global uncertainty.

“You buy an ounce of gold here, you could still go to Canada, Europe, Mexico, China wherever you are, you still have one ounce of gold in your hand,” he said.

But Tennenbaum warned consumers to be cautious when buying gold online.

“There is a lot of fakes out there,” he said. “They got this online, they got this as a deal. There’s no such thing as deals in bullion."

He recommended purchasing from trusted businesses that can verify authenticity on the spot.

“Buy from a reputable place that can test it for you before you walk out the door,” he said.

As of Tuesday, gold was trading just under $3,000 an ounce, according to market data.