Gold’s surging value is a global phenomenon, but Israel’s unique dynamics amplify the issue

Gold prices roared back with a vengeance in 2024, hitting a staggering $2,700 per ounce ($87,000 per kilo) this week — a 35% spike since the start of the year.

While this surge might delight investors, it’s causing headaches for travelers passing through Israel. Increasingly, families are being stopped at Ben-Gurion Airport and slapped with taxes on personal items — or worse, forced to surrender their jewelry under allegations of illegally importing gold.

Here’s what you need to know about this glittering dilemma:

Gold Rush

A kilogram of gold was worth $65,000 at the beginning of the year. Last week, it hit $90,000. Enough to stir up some excitement, wouldn’t you say?

Why Israel?

Sure, gold’s surging value is a global phenomenon, but Israel’s unique dynamics amplify the issue. Market analysts explain that gold fetches a premium here due to heightened demand. In the region, many Arabs prefer dealing in gold over traditional banking systems. After all, it’s far simpler to carry a few gold bracelets than wads of cash.

The Victims

This is a global problem — but American families entering Israel have been caught in the crosshairs. Take, for instance, a woman who packed a gold chain in her carry-on (too valuable to check, but too cumbersome to wear). She was accused of smuggling and allowed entry only after paying a 17 percent customs tax based on a dubious on-the-spot appraisal, plus a hefty fine.

Another case involved a young newlywed whose gold bracelet was seized. She only got it back after shelling out over $1,500 in fees. Stories like these abound — travelers blindsided by accusations and harsh penalties for items that are arguably personal belongings.

The Offenders

Yet not all accusations are baseless. Just this week, authorities at Ben-Gurion detained a man arriving from Dubai who attempted to smuggle in two kilos of gold coins — valued at over $150,000.

“There’s no question that people are not supposed to smuggle. We get a few calls about people bringing in too many cigarettes or electric vapes, and they get in trouble. And they should get in trouble. But that’s not what we’re talking about.

“We’re talking about regular passengers, families traveling to Israel — some of whom live here — being stopped for ridiculous reasons. Customs officials torment them, claiming they’re smuggling, when it’s clear these are legal personal items.

“Anyone is allowed to bring their personal effects. They let you bring clothing, jewelry. So if you have a watch worth $20,000, but it’s the watch you wear, you can bring it. The issue arises when they decide it’s not your personal effect.

“What’s happening is they’re stopping people for permissible items and accusing them of sneaking them in. ‘Oh, you have an empty jewelry box in your luggage, so the necklace you’re wearing must not really be yours. You just put it on to get through customs and intend to sell it!’ But people keep the boxes. They’re not criminals.”

—Rabbi Paysach Freedman, CEO of Chaim V’Chessed

What’s Being Done?

Chaim V’Chessed has filed a formal complaint with Israeli lawmakers, pushing for Customs to address the issue and overhaul their inspection protocols.

Tips (Not Foolproof but Helpful)

• Declare any items that might raise red flags before boarding your flight
• Ditch the boxes: Jewelry cases invite suspicion
• Wear your jewelry: Keeping it on your person is less likely to cause trouble than stashing it in your bag

(Originally featured in Mishpacha, Issue 1038)