Gold hits record highs. Will it keep climbing?

The price of gold is up more than 40 per cent in a year with experts thinking it has yet to peak. John Vennavally-Rao reports.

Max Smirnov has never seen gold prices this high.

The owner of Global Bullion Suppliers in Toronto says demand has surged, pushing the price of gold beyond $4,200 per ounce — a sharp rise from about $2,800 a year ago.

“In uncertain time periods gold has always been a safe haven,” Smirnov told CTV News. “There’s people excited to buy because they think it’s going to go up and up and up.”

Since the start of 2025, the price of gold has climbed 12 per cent. Compared to a year ago, it’s up more than 45 per cent.

Economic uncertainty fuels demand

Analysts say global uncertainty is fueling the rally. The re-election of U.S. President Donald Trump and ongoing trade tensions have fuelled fears of a trade war, while conflicts in Ukraine and the Middle East have added to investor anxiety.

Central banks are also buying gold, partly as a hedge against inflation.

“People often cling to gold in times of crisis,” said William Huggins, an assistant professor of finance and business economics at the DeGroote School of Business.

Tariff concerns, in particular, are weighing on investors.

“The idea with tariffs is that they’re going to create a lot of economic difficulties in Canada,” Huggins said. “And at the moment, people don’t really know what the impact of them will be.”

Jewelry prices soar

Allen Ash works in the jewelry division at Muzeum, a business that buys and sells precious metals. He showed CTV News a 10-karat gold bracelet now selling for around $10,300 — more than double its pre-pandemic price of $3,900.

“In the last year, year and a half, it’s gone up about $3,500 to $4,000,” Ash said. “The price of this has skyrocketed.”

More record highs ahead?

This week, analysts at Goldman Sachs predicted gold could reach US$3,100 an ounce (CAD$4,400) by year’s end, with the possibility of hitting US$3,300 if trade tensions persist.

But Huggins warns that gold isn’t always a guaranteed win. After the 2008 financial crisis, gold initially jumped 50 per cent but later fell from US$1,800 to US$1,100 over four years.

“It is possible to lose 20 to 30 per cent on a gold investment, just like in the stock market or housing,” he said.

Despite the risks, access to gold has never been easier. Retail giant Costco began selling gold in late 2023, and investors can buy gold-backed funds on the stock market.

Smirnov says the current record prices leave buyers with a difficult choice.

“There’s an argument to be made that it’s the perfect time to sell because it’s at an all-time high,” he said. “There’s also a flip side of that. There’s an argument to be made that you should get it now because it’s going to go up even higher. Time will tell.”

One thing is certain -- he says gold will always hold value.

“It might go up, it might go down, but it’s never going to be worthless. And that’s why it’s lasted throughout history.”