Still a demand for gold, even as prices swing, Long Island jewelers say

Family-owned Frassanito Jewelers in Huntington Village has been in business for more than 90 years. And while gold prices have always fluctuated, co-owner Diane Frassanito has never seen its value oscillate the way it is now.  

The value of gold in 2026 has come out swinging, peaking at nearly $5,600 per troy ounce in January, before dipping to around $4,150 on Sunday. Prices bounced back a bit on Monday, but keeping up with the market’s volatility has been difficult for jewelers.

“The volatility is the issue,” Frassanito said. “If it would settle, no matter where it is, that would be better for everybody.”

The value of gold has made steep climbs over the past several years, said Amanda Gizzi, senior vice president at industry group Jewelers of America. Even with the recent drop, gold prices are still up compared to a year ago.

The hike in gold prices earlier this year followed a record upswing in 2025, driven by global trade concerns, reduced demand for American currency and increased central bank buying, according to J.P. Morgan.

A weaker U.S. dollar and lower interest rates have historically boosted gold prices. So has geopolitical and economic uncertainty, like the bump in oil prices caused by conflict with Iran, said Joe Cavatoni, senior market strategist at the World Gold Council, which represents gold mining companies.

“What we’re dealing with now is a world where the conflict in the Middle East, with Iran, is leading to conditions that are very unclear, but likely leading to higher, stickier inflation.”

That’s led to more investors using gold as a source of liquidity, he said. And, even though the market may see short-term dips, the value of the precious metal tends to appreciate over time.

“It’s a truly global asset in nature, and in the physical sense, it can be held onto by you,” he said, which is why risk and uncertainty can drive the value of gold.

But, on the flip side, many people choose to invest in jewelry in times of prosperity as well, Cavatoni added.

“When things are unstable, people are like, ‘Let me buy hard gold.’ When things are good, people are like, ‘Let me buy jewelry,’ ” he said.

Sami Saatchi, founder and CEO of SVS Fine Jewelry in Oceanside, said that despite the high cost of gold, more customers have come to buy, sell and repurpose gold jewelry they already have.

Over the past year, while jewelry consumption fell, demand value continued to grow 18% to $172 billion, according to a January report from the World Gold Council.

More people have also shifted to more expensive types of gold, like 18-karat, Saatchi said.

People buying jewelry on a whim may hesitate to splurge these days, but sales haven’t slowed down, Frassanito said. If someone is getting married and needs to buy wedding bands, "they're going to buy wedding bands." 

“What makes gold fun is that it’s a wearable, usable asset,” Saatchi said. Gold jewelry still holds value even after it’s been worn “to death.”

“Who knows what the future holds, but you can at least sell it for something and never be in a situation where you’re like, ‘Oh, I have to throw it away or donate it,’” he said.

“The problem that we face is keeping up with the fluctuating pricing,” he added.

The same product might be priced differently depending on the value of gold when it was stocked, he said, something that sometimes confuses customers.

“Oftentimes, what will happen is, we’ll have a piece from a certain designer and it will be, let’s say, a dollar. And then we go to reorder it and it’s $1.20,” he added. “My biggest pain point, or fear, is anyone ever thinking like, you’re trying to get one over on me.”

Frassanito said she’s tried to restock when gold is at a low, which has helped the store maintain lower prices.

But, she added, people usually understand that the volatility of the gold market is out of her hands, especially if they’ve been following the news.

“It’s been a really fascinating time to be in the jewelry industry,” Gizzi said, noting that demand for gold jewelry has increased along with prices. “Quantity is down but the quality has remained high.”

People considering selling their gold should look at their holdings, understand their desired outcome and do their research, Cavatoni said, noting that the World Gold Council’s website offers advice on gold investments.

If there’s pressure to sell, “that should be questionable,” he said.

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.