Gold jewelry is undoubtedly an excellent investment if you’re interested in wearing it. The experts have long endorsed the psychological and financial benefits of this personal investment. But is gold jewelry good as a purely financial investment? Investors seem not to think so.
Some important arguments are put forward
Experts say it’s a good thing to keep in mind that gold jewelry comprises 43% of the total demand for gold, and jewelry manufacturers can charge way more than the base value of gold because of the craftsmanship put into designing the jewelry. This inflated price is then subject to a variety of taxes, making gold jewelry way more expensive than the actual value of the gold.
When is gold jewelry a good investment? Should I Buy Gold Coins Instead?
Gold coins are less practical than jewelry simply because they have little practical use as they cannot be worn or integrated in an outfit. This makes an oz. bar of gold or an oz. of gold coins less costly than 1 oz. of jewelry. The fact that the value of gold coins is linked to the true value of the gold and not to any craftsmanship or visual appeal makes gold coins and bars much more practical investment. Gold coins are very easy to purchase nowadays and can be bought instead of jewelry or bars. Buying coins from a reputable online store can help prevent you from being duped for fake gold.
Is gold jewelry a good investment for the gold value?
The price for an oz. of a gold bar or coins can easily be calculated using the current gold rate while calculating the worth of a necklace is much more complicated as you need to consider the dealer’s share and the design’s worth. Again, this makes gold coins a much more practical financial investment. Gold jewelry can be invested in if you want and intend to use the jewelry so that you can get its full worth.
It is, however, a simple fact. Gold in any shape and form is a great hedge fund against inflation.