Men and women have treasured gold for centuries. Today, people view gold jewelry as a symbol of one’s wealth and status in society. However, some people view this metal as an asset and invest in it rather than using it to adorn their bodies. Is gold jewelry a good investment? What should people know before buying jewelry to add to their investment portfolio?
Is Gold Jewelry a Good Investment?
According to the global Central Banks, gold serves as a Class A investment. It holds its value over time and isn’t subject to inflation, making it desirable to gold buyers everywhere. The material remains in high demand today and isn’t influenced by outside factors. If a person finds they no longer wish to own a piece of gold jewelry, they can sell it.
While the value of cash fluctuates, this isn’t an issue with jewelry that has a high gold content. A person that chooses to buy gold can melt it down and make a new piece. They can also have the gold made into a bar or coin. If the piece also contains gemstones, the stones may also be repurposed.
In addition, gold cannot be attached to debt. Tax collectors cannot take the gold jewelry to satisfy unpaid taxes. The person can take the gold with them when they move around, even when they cannot access traditional currency.
The Drawbacks of Investing in Gold Jewelry
A person must have a way to secure the jewelry when it is not being worn. This requires storage space the person must account for when making purchases. A person will often find they can recoup the money they spent on the jewelry, but they may not see high returns, such as those they obtain when selling other investments. Furthermore, gold isn’t capable of producing passive income.
When to Buy Gold Jewelry
Men and women who wish to invest in gold jewelry need to know when the right time to buy arrives. If people believe a stock market crash is inevitable, they may rush to sell their stocks and invest in precious metals. This leads to an increase in demand and an accompanying rise in gold prices. Avoid buying at this time. People who do make purchases during a bubble find they don’t recoup their investment when they go to sell the pieces.
Which Pieces to Buy?
When visiting a Fort Worth gold and silver exchange, investors need to know which pieces to look for. Look for gold jewelry that contains gemstones, such as emeralds and natural saltwater pearls. These breathtaking pieces will delight the owner and increase in value over time. If the piece must be sold in the future, the owner can expect to see a nice return on their investment.
Buying Gold Jewelry
Consider the purity of the gold when buying jewelry as an investment. Gold comes in 10k, 14k, and 18k. 24 karat gold is pure gold but is rarely found in jewelry. The raw material is too soft to be used for this purpose. Choose 18 k gold pieces when possible, as these pieces contain the most gold. Therefore, they serve as the best investment, as the buyer knows the amount of gold found in the piece and the return on investment they may see if they choose to sell the piece in the future.
The type of gold also plays a role in the value of a piece. Yellow gold remains very common today and is what most people bring to mind when they think of gold jewelry. Rose gold remains a popular choice for engagement rings and is made using a combination of 24k gold, copper, and silver. White gold is a metal designed to mimic platinum and contains 75 percent gold and 25 percent silver if the piece contains a stamp that says 18k gold. Finally, green gold is typically made in labs and has a greenish tint to it, as the name suggests. It comes with a higher price tag than other gold options.
Any individual looking to diversify their investment portfolio should consider purchasing gold jewelry. Doing so comes with many benefits and a few drawbacks. However, the right pieces must be purchased to see a good return on investment. Choose carefully and have tangible items that can be owned and enjoyed as they increase in value.
About Alliance Gold and Silver Exchange:
Turn unwanted gold and silver into cash with our help. We serve as one of the largest buyers of precious metals items in the Fort Worth area and pay top-dollar for gold, silver, bullion, and more. People turn to us because they know they can count on our integrity, experience, and customer service.