Gold hit a record high this year despite an impressive 2025.
In 2025, prices jumped 50-60% in many analyses, so this continuing bullish trend is not surprising.
Spot prices of gold are around $4,800-$4,990.
Recent highs show prices around $4,900 and even cross $5,000 in some cases, particularly for futures contracts.
Prices have stayed at record all-time highs. Forecasts from major players like Goldman Sachs predict prices of $5,400 at the end of 2026.
In the first half of 2026, Bank of America predicts prices will be palpably higher than $6,000. With even higher prices over the next few years, major players have begun to speculate $7,000 in extreme cases.
Why is the price of gold jumping? It is the perfect combination of economics, politics, and ‘it-just-works’ situations. Lower interest rates, reduced yields, and the bullion asset increase as opportunity costs decrease.
With real interest rates falling, not holding gold will result in the loss of higher holding costs from real interest rates.
Bank and cash holding yields simply will not provide the loss of opportunity costs. Gold, cash, and banks will lead to the rise of the other again for the rest of this year.
Gold is removing these opportunity costs, and the U.S Fed now provides lower opportunity holding costs for gold.
Iyaloja’s and wealthy socialites in Lagos are among Nigeria’s most impressive informal economists. Their new heavy tilt to gold is responsive to Lagos’ gold rush’ and Nigeria’s economic forecast for 2026.
While it may seem like “owambe” gold, it is, in fact, an advanced divestment strategy for a variety of reasons.
Gold retains purchasing power as a store of value with a depreciating Naira and inflation concerns. Gold, unlike cash, does not depreciate.
Spending gold instead of cash is not “shopping” for these women. Rather, it is transforming a losing currency (Naira) into a “shopping” with gold for an appreciating global asset.
As of early 2026, gold prices are expected to soar up to $5,000 an ounce in a few months. In Nigeria’s business capital, gold jewellery markets like Balogun and Itire, “gold is liquid gold.” In minutes, a wealthy woman can walk into a gold store and turn an 18-carat gold chain into millions of Naira.
Individuals who purchased gold at lower prices several years ago are now diversifying their assets into other gold businesses, investing in real estate, or upgrading their lifestyles at substantial profits
Individuals who purchased gold at lower prices several years ago are now diversifying their assets into other gold businesses, investing in real estate, or upgrading their lifestyles at substantial profits
The gold purchasing habits of Lagos’s top-tier women stem from having an appreciation for gold’s tactile nature as a physical asset that isn’t stored digitally in a bank.
Gold’s value means women can sidestep the risk of traditional savings, which may come with fees and a paper trail. Economically and politically volatile times may put a person’s wealth at risk. Banks may freeze accounts, and cash can be difficult to transport across borders. In contrast, gold can be worn, and net worth can be moved anytime.
Financially, using gold to accessorize with a cultural Aso-ebi worn at social events and dances is seen as wealth. In Lagos, gold represents an asset-backed social status, which is why gold investment is so common.
A gold collection alone can enable an Iyaloja of the gold trade to informally secure high-interest, short-term loans against that gold within her circle.
Cars and designer bags only depreciate. Gold perpetuates a family’s financial status across generations as legacy wealth.