Is this a good time to buy or sell gold?

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Gold is no longer just jewelry for adornment or a celebratory gift. In recent weeks, it has become a headline of both fear and greed.

In the markets, eyes rise to the fluctuating price screens before hands reach for the displays. At home, discussions about grams and carats have overtaken conversations about travel and celebrations.

The reason? Unprecedented surges in gold prices, stirring a major question: Should we buy now before it soars higher? Or sell quickly before a potential crash? Globally, gold prices have jumped $3,500, with projections hinting at even higher levels if global crises persist.

Locally, the price of 21-carat gold has exceeded RO 36.22 per gram, shocking buyers who had grown accustomed to much lower prices in previous years.

“For the past twenty years in this business, we’ve never seen a price surge this intense,” says Khalid al Ajmi, a jewelry shop owner in Muttrah Market, pointing to an electronic screen that changes prices by the hour.

“Customers enter the shop like they’re entering an open auction. Some rush to buy fearing further hikes, while others sell off their old jewelry to cash in.” He adds with a weary smile: “Even we, the sellers, are now following economic news more closely than the weather forecast.”

The profile of buyers has changed dramatically. No longer are women seeking beauty leading the scene; instead, it’s investors and those seeking financial security.

Maryam al Hosani, a young woman planning her wedding, said with a sadness: “I dreamed of owning a beautiful bridal set. Now it feels out of reach. Prices climb every week and I fear I may have to delay my wedding.”

Meanwhile, Salim Abdullah, an investor, had a different perspective: “I don’t see gold as jewelry or luxury. For me, it’s an economic fortress. I bought more recently despite the high prices, betting on further gains over the next two years.”

Despite soaring prices, many shop owners complain of noticeable stagnation in buying and selling activities. Saeed al Kindi, a gold seller, said, “The situation is tricky. Some days pass without a single sale. People are scared. Those who have gold prefer to hold onto it and those who don’t are waiting for prices to drop. Everyone is living in a state of anticipation. Right now, the biggest movement we see is people selling their old jewelry. Many come in hoping to cash out while prices are high.”

Explaining the phenomenon, economist Dr Adel al Rawahi points to a mix of intertwined factors: “Declining investor confidence in stock markets, the devaluation of local currencies against the dollar and escalating global geopolitical tensions — all these factors are pushing demand for gold.”

He warns against impulsive gold buying: “Anyone buying gold today must be prepared for potential severe price corrections. Gold is a safe haven long-term, but chasing market peaks could lead to painful losses.”

During a quick tour of the gold market, a woman in her fifties selling her old necklace, said, “My husband is ill and we need the money. We seized the chance after hearing that gold prices are at an all-time high.”

Some experts believe prices may continue to climb to historic highs if global tensions escalate, while others suggest that an improving global economy and de-escalated conflicts could cause a sharp price correction.

Amidst this uncertainty, specialists advise individuals to stay calm and not make major financial decisions based solely on fear or greed.