Can you consider gold jewellery an investment?

If you are thinking of buying gold bullion coins or bullion bars might be the best option instead of buying gold jewellery. These two types of gold products are obviously different but both serve a certain goal and interest.

If you want a reliable, tangible store of wealth then gold coins and gold bars are the best investment vehicles. Bullion allows you to buy gold as close to the spot-price of metal as possible. Although there is a small markup, you are paying for gold and nothing else. Regardless of where you buy gold bullion, you will pay a few percent above the spot price. There are many things that cause the gold price to fluctuate like supply and demand and economic conditions. You may not be able to buy bullion but have some money to indulge yourself with some gold jewellery. This would not altogether be a loss as you can sell the jewellery when you need cash. So, it really boils down to affordability even when you consider coins vs. bars.

When you buy gold jewellery, you are paying more than for the gold itself. You also pay for the manufacture of the jewellery, the labor that goes into it, and often other valuable materials such as gemstones, diamonds, and other precious metals. However, when you sell the jewellery you will get less than even the spot price. If you buy your gold jewellery for $2000. You have to consider the quality and the weight. Gold jewellery is usually made of less quality gold than gold bullion while gold is made of pure gold. You are more likely to get a better price for the bullion than you would for the jewellery.

Gold is a very expensive commodity, which will keep the price high. It retains, is value, lustre and it does not age. Investing in gold means you are buying something expensive that will have value for years to come.

Gold bars can be resold quickly and easily, if necessary. With the exception of a small upfront fee, you should have no problem getting your initial investment back. And depending on the current spot price, you can come out on top. Gold jewellery cannot give that kind of assurance and stability.

Often people buy jewellery because they want to wear it or give it to a loved one. Either way, this jewellery can wear and tear over time. As you analyze the difference between gold jewellery and bullion, consider the validity of your investment. Gold bars can be stored safely at home in their original packaging, ensuring that they will remain in pristine condition for decades. Although there are ways to protect your money in gold, that is not how owning gold works. Jewellery is created to be worn and to be enjoyed. If you plan to make some money from it at a future, you might as well buy gold bullion. Bullion is a simple investment vehicle. With gold bullion coins and bullion bars, you know exactly what you’re getting. You know exactly how much gold you have and what it’s worth at any given time.