Is gold jewelry considered an investment? Experts weigh in

THE gold price increased dramatically in 2024, eventually reaching $2,790 per ounce in October before moderating slightly. This steady rise in prices has sparked new interest in investing in gold, with some people considering adding gold jewelry to their investment portfolio.

But turning gold jewelry into a smart investment isn’t as simple as it seems. Below, industry experts explain what sets jewelry apart from other gold investments and whether it can be a worthwhile addition to the portfolio.

Learn more about the benefits of investing in gold.

Is gold jewelry considered an investment? Experts weigh in

Many serious investors prefer gold bars and coins. But gold jewelry can offer unique potential, provided you have careful purchasing strategies and realistic expectations.

The Case for Gold Jewelry as a Solid Investment

“Gold [jewelry] can be a great investment if you buy it at the right price,” says Matt Harris, consignment jewelry and gemstone expert at Curated Fine Jewelry. He recommends looking for regular gold pieces such as chains, rings and bracelets at consignment stores, private markets. and pawnbrokers. You may find prices slightly above the spot price of gold.

Contrary to standard gold bars and coinsjewelry offers potential value beyond its metal content.

“The design, quality of craftsmanship and brand name can influence the value of gold jewelry,” says Ashleigh Trent, director of personal insurance and co-founder of Tower Street Insurance. Well-made pieces by respected designers can appreciate even if the price of gold remains stable.

Add gold to your investment portfolio today.

Understanding the Investment Limits of Gold Jewelry

According to Harris, it is common for retail stores to mark up gold coins by 100% over wholesale prices. This means that the value of gold would have to double just for you to break even.

And the challenges persist when selling. For example, “We Buy Gold” stores typically purchase gold jewelry at 30-50% less than its cash value. They offer much less because they need to refine the piece and, of course, make a profit. These markups and resale difficulties make gold jewelry a complicated investment choice.

What to Look for in Gold Jewelry as an Investment

How do you know if gold jewelry has investment value?

Trent and Ruhee Rathod, director of finance and operations at Bario Neal, break down five traits to look for:

• Higher purity levels: Look for gold that is 18 karat (75% pure) or higher. The purer the gold contentmarked with higher carat numbers, the more valuable the piece. Avoid gold plated (GP) or gold filled (GF) items.
• Classic designs and brand reputation: Choose timeless styles over trendy pieces. Traditional designs from prestigious brands retain their value over time.
• Appropriate documentation: Search for certificates prove the purity of gold and the authenticity of the piece, particularly for designer jewelry.
• Solid construction: Heavier, denser coins contain more gold by weight. Since gold is typically valued by the gram, substantial pieces are often better investments than delicate pieces.
• Clear origins: Traceable jewelry with documented sources tends to command higher prices.

Other smart ways to invest in gold

Besides jewelry, Rathod of Bario Neal highlights several gold investment options worth evaluating:

• Gold IRA: Transfer an existing 401(k) into a Gold IRA to diversify your retirement savings. These accounts offer secure storage in monitored facilities and often include insurance protection.
• Gold ETF and mutual funds: Buy shares in gold-focused funds for an affordable investment method without storing physical gold. These options work well when gold prices are high but you want to invest small amounts.
• Physical gold: Buy gold coins or bars through authorized resellers. This traditional approach gives you direct ownership of the metal. Physical gold is one of the best hedges against inflation. The downside is that you will need to arrange secure storage.
• Precious metal certificates: Obtain certificates from trusted gold banks representing ownership of gold. You can later exchange them for physical metals, avoiding immediate storage issues.
• Stocks of mining companies: Invest in gold mining companies for indirect exposure to gold prices. This option may offer higher returns but carries more market risk than owning physical gold.

The essentials

Gold jewelry can provide beauty And value. But before you buy gold in any form, know the risks that could affect your investment. Rathod advises consulting a financial advisor first to determine whether jewelry fits your portfolio goals.

While gold jewelry may not match the investment potential of bars or coins, choosing well-researched coins from reputable sources can provide financial and personal value. Remember to keep detailed records and focus on the long term: gold jewelry works best as a slow, steady investment that you can also wear happily.