Apr 2024


Apr 2024

Is Gold Jewelry a Good Investment?

By StoneX Bullion

There are many different options when it comes to investing in gold: you can buy gold bars, collect gold coins, and even invest in gold jewelry. While most people’s minds tend to flock towards gold bullion bars and coins when it comes to gold investments, the idea of wearable bullion often gets left behind. But that shouldn’t be the case - investing in gold jewelry is a smart move for any investor.

Gold jewelry is highly portable and liquid and carries the same tangible, intrinsic value as other gold investments. It’s just as valid as an inflation hedge and portfolio diversifier, and on top of that, you get the added bonus of sentimental value and actually getting to wear and enjoy your gold investments!

In this article, we explore why gold jewelry is a good investment, including reasons why you should invest and tips to help you get the most out of your investments.

Reasons to invest in gold jewelry

Below, we look at some reasons why investing in gold jewelry is a good idea.

Historical store of value

Gold jewelry has served as a timeless store of value for centuries, tracing back more than 6,000 years to ancient civilizations. Its enduring allure is shared across many cultures, from Greece to China and the Middle East, where people often stockpiled gold jewelry and gold bullions in case of emergency.

Throughout history, gold has been prized for its intrinsic beauty and scarcity, making it a symbol of wealth and status across cultures. Today, many people across the world still store gold coins, bullion bars, and jewelry in case of natural disasters, political unrest, or economic turbulence. In such situations, it’s not so easy to stop by a safe deposit box in the bank - in fact, the bank could have closed down or been robbed before you even got there.

Having gold close by offers safety and security should things go awry, and gold jewelry around your wrist or neck is as close as you can get!

Continue reading: Why Buy Physical Gold

Gold is a safe investment

Adding to the previous point, gold has proven to be a safe haven during periods of economic crashes. When fear is elevated and global tensions rise, gold naturally increases in value as people turn to it as a safe and secure investment. This is why gold is known as a crisis commodity.

Physical gold - like gold jewelry - will always be considered valuable regardless of what’s going on in the world. Let’s use an example from recent history. In the late 1970s, the United States was experiencing high interest, inflation, and unemployment rates while global conflicts like the Cold War and Soviet invasion of Afghanistan were taking place. During these periods of instability, gold’s price increased by 721%.

Regardless of what’s going on in the world - be it war, pandemic, or stock market crash - gold tends to retain and even increase in value. This provides a feeling of safety and security for investors who are smart enough to hold gold before these crises occur.

See: Why Central Banks Buy Gold

Gold’s price is increasing

Gold prices have been rising steadily over the years, driven by various factors such as investor demand, economic instability driven by the pandemic, and geopolitical tensions. As gold’s price continues to increase, experts anticipate that gold jewelry will continue to gain value. And think of it this way, purchasing gold jewellery today means in a few decades you’ll be holding an antique that could be worth even more than the price of the metal itself.

Gold jewelry is portable & liquid

Unlike other types of gold investments, gold jewelry is both portable and highly liquid. This means it can easily be moved and traded when needed. Its compact nature allows for easy storage and transportation, making it an ideal asset for those seeking flexibility in their investment holdings. On top of that, gold can easily be converted straight into cash or other assets when you need money, providing quick access to liquidity.

When compared to other investments like stocks, mutual funds, or EFTs, gold jewelry is physical and tangible and allows you to quickly move wealth from one place to another during unforeseen circumstances. The high liquidity of gold jewelry also makes it easy to pawn for immediate exchange of money when required, as opposed to bullion bars and coins which may need to be authenticated beforehand.

Keep reading: When is the Best Time to Buy & Sell Gold

Gold is a hedge against inflation

Gold has proven itself to be an excellent hedge against inflation. This means that it tends to outperform the market during periods of high inflation. Essentially, investing in gold jewelry can protect investors against the negative effects of inflation as gold tends to maintain or even increase in value during high inflationary environments.

Generally, gold’s price tends to increase as the value of the dollar goes down. At the same time, conventional assets like stocks and bonds tend to depreciate in value. Investing in gold jewelry therefore offers a way to preserve your wealth during economic difficulties - while enjoying a beautiful piece of work that you can wear and enjoy.

See: How to Invest in Gold as an Inflation Hedge

Gold is durable

Gold jewelry is durable and long-lasting. Unlike paper assets or electronic investments, which can be vulnerable to damage or technological obsolescence, gold jewelry remains resilient over time. As a non-ferrous precious metal, gold is highly unreactive to environmental elements and won’t tarnish or rust. When properly cared for, your gold jewelry will last centuries and can be passed down to future generations as a lasting legacy.

Gold jewelry is a portfolio diversifier

Diversification is important when it comes to investing, and gold jewelry offers investors a way to diversify their portfolio while enjoying a fashionable and wearable work of art. By adding a tangible asset like gold jewelry to a mix of stocks, bonds, real estate, and other investments, you can reduce the overall risk of your portfolio. Even if you already own gold coins or bullion bars, gold jewelry offers another way to diversify your gold holdings with an artistic piece that can increase in value as it becomes an antique appreciated for its craftsmanship.

See: Best Gold Coins to Buy and Why

Jewelry holds emotional and cultural significance

For many people, gold jewelry holds cultural and emotional significance beyond its financial value. It’s often considered a symbol of wealth, status, and sentiment when gifted from a loved one or passed on through the generations.

Whether worn as heirlooms, wedding bands, or symbols of achievement, gold jewelry carries personal stories and traditions that transcend monetary worth and add an intangible richness to its investment appeal. This means that you can enjoy both the monetary value of your investment as well as the emotional connection it may hold.

Gold jewelry is likely to appreciate

Investing in gold jewelry offers a way to profit as the price of gold increases, but certain pieces can also appreciate over time due to their craftsmanship, rarity, or historical significance. When you hold high-quality gold jewelry for a long time, its value might appreciate beyond the gold content alone due to its design or uniqueness. This is another reason why you may want to invest in gold jewelry as well as buy gold coins and bars.

Tips for buying gold jewelry as an investment

If you’re ready to invest in gold jewelry or wearable bullion, we’ve outlined some tips below to help you get the most out of your investment.

Buy from an reliable supplier

Be sure to buy your gold jewelry investments from a reputable and trustworthy supplier. Look for certified precious metals dealers or jewelers with a track record of integrity and customer reviews. Buying from an unknown supplier might put you at risk of buying gold-plated jewelry that’s mislabeled as authentic fine jewelry.

To be legally sold as genuine, authentic 99.99% pure 24-karat gold requires testing and hallmarking. Ideally, you would receive an assay certificate with your gold jewelry to assure authenticity. Finding a reliable and genuine gold supplier who can verify the authenticity of their products is the first step towards investing in gold jewellery.

Choose plain, solid gold jewelry

When buying gold jewelry as an investment piece, it’s wise to go for plain and solid gold pieces. These typically come with higher purity and gold content that makes them more valuable and desirable in the long run. When you buy a piece of jewelry with more detailing, you’ll likely be paying an extra premium for the craftsmanship on top of the value of the physical gold itself.

Our recommendation when investing in gold jewelry is to choose simple solid gold bracelets, gold chains, or gold pendants that can easily be resold or melted down when needed.

Spend time on research

Before you buy gold jewellery, take the time to research current market trends, pricing, and gold purity. Familiarize yourself with the factors that influence the value of gold jewelry, such as purity levels, weight, and craftsmanship. With this knowledge, you can make more informed decisions for your investment and spot quality jewelry at good prices.

Insure your gold jewelry

It might be worthwhile to protect your investment by insuring your gold jewelry against loss, theft, or damage. While gold is durable and long-lasting, unforeseen circumstances still happen. Taking out insurance can give you peace of mind knowing that your investment is financially protected.

Choose jewelry that appeals to you

While making solid investment considerations is important, don’t overlook personal preference when choosing your gold jewelry. Part of the fun of investing in gold jewelry is getting to wear beautiful pieces that appeal to you and make you feel good. Take the time to choose pieces you like and you’ll enjoy the investment process even more!

Verify authenticity & purity

Always verify the authenticity and purity of gold jewelry before buying. Look for hallmark stamps that indicate the gold’s purity, such as ‘24K’ for pure gold. You should also ensure the jewelry comes with proper certification that verifies its purity and authenticity to make sure your purchase is genuine.

Read: Gold Purity, Fineness, & Karat: What Is It and How to Check It

Compare prices

Don’t settle for the first offer you come across – take the time to compare prices from different sellers. Look for transparent pricing that’s competitive without compromising on quality and authenticity. Beware of offers that sound too good to be true as they might be a sign of low-quality gold jewelry.

Consider proper storage

Before buying your gold jewelry, think about where you’ll store it. Proper storage is essential to preserve your jewelry’s value and appearance. Store your pieces in a secure and dry location, such as a jewelry box or safe deposit box, to prevent loss or damage. Avoid exposing your jewelry to harsh chemicals, moisture, or extreme temperatures that can degrade its quality over time. Taking the time to consider proper storage you can maintain the investment value of your gold jewelry collection.

Read more: What is the Proper Way to Store Gold?

Buy wearable gold bullion

If you’re ready to start your gold investment journey, StoneX Bullion offers a range of investment-grade wearable gold bullion. These carefully crafted pieces of jewelry are a valuable asset that blends elegance with intelligence investment. Each crafted from 99.99% pure gold with 24-karat, our gold jewelry comes in its own sleek gift box with a certificate guaranteeing authenticity.

As with our other bullion products, transparency is our top priority. We provide clear information on each piece's origin, material, and production so you know exactly what you’re getting from your purchase. As affiliate members of the London Bullion Market Association (LBMA), StoneX Bullion is a trusted and reliable source for your gold jewelry investments. Start blending wealth with wearability and invest in an elegant piece of gold today!