Investing in gold jewelry - what are the benefits and what to look out for

The past and present of gold jewelry

Gold has been used since ancient times as a method to retain value. Gold jewelry was a way to wear gold in order to show off your status, power and wealth. Today, not only gold but also gold jewelry has become an increasingly popular type of investment, especially in times of economic uncertainty. When the stock market falls, gold often increases in value. For this reason, gold jewelry can be seen as a specific type of investment, since it not only retains its value but often increases in it. Over the long term, the rise in the value of gold is also remarkable – its price has increased several times over the last 50 years.

Who is investing in gold jewelry suitable for?

Investing in gold jewelry is particularly suitable for those who want to diversify their portfolio and who also enjoy acquiring and owning jewelry. This type of investment may interest collectors who are interested in historical or unique pieces. It is also ideal for those who want to put money into something that will later serve as a family heirloom.

On the other hand, this type of investment is not suitable for people who are looking for a quick profit. The value of gold jewelry depends on multiple factors and it’s not possible to simply follow the price chart of gold jewelry the way we do with gold itself.

So let’s summarize the most important advantages and disadvantages of investing in gold jewelry so that you can get a clear picture.

The advantages

The combination of aesthetic and investment value – gold jewelry is not only a financial investment but also a beautiful object to wear and enjoy.

The stability of gold – historically, gold has always provided some stability even in times of economic uncertainty. It could be assumed that this will continue to be the case.

The potential for higher appreciation – particularly when it comes to old, designer or otherwise interesting jewelry, there’s a chance that it may appreciate in value several times over time.

Inheritance – gold jewelry can be passed down from generation to generation.

The disadvantages

A higher purchase price – the price of gold jewelry includes not only the value of the gold itself, but also the cost of the design, workmanship and brand, which means that the actual investment value of the gold itself is lower.

Less flexibility – compared to gold, which is easily exchanged for cash, trading in jewelry can be more difficult. It may not always be easy to find a buyer willing to pay the amount you want, especially if you are in a hurry to make a sale.

The need for safe keeping – you should keep your gold jewelry in a safe or a safe deposit box at the bank. If you wear the jewelry, you do run some risk of loss or destruction of it.

Conclusion

Gold jewelry should be seen as a long-term investment. It is not a way to get-rich-quick. However, it can be an attractive way of dealing with spare funds, ensuring that they retain their value in the future. It is important to buy only from trusted dealers who are already established in the market and who will provide you with certificates of authenticity for the jewelry. Beware of dealers who are not tried and tested and who sell jewelry at suspiciously cheap prices.