Is Gold Jewelry a Good Investment?

gold jewelry

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Read our Advertising Disclosure.

Are you looking to invest in gold jewelry and want to know if it is worth it? First, there are a number of things you need to know. I will give you the information, and then you be the judge.

Gold jewelry can be a significant investment, especially when in high demand. However, if you are looking to sell an essential piece of gold jewelry, increased demand will not matter if the article is not high-end.

You should also know the purity levels of your piece and what type of gold you are sitting on. Read on and find out if gold jewelry is a beneficial investment.

Is Gold Jewelry a Good Investment?

Nothing shines quite as brightly as a beautiful piece of gold jewelry. When you purchase gold, you are not only buying an item that you may be able to sell later, but you can wear it as an accessory with a nice outfit and look like a million bucks.

There is some debate over whether gold jewelry is a good investment. It depends on a few key factors. The following explains what you need to consider when purchasing or getting ready to sell your gold.

It depends on the purity levels

When you invest in gold jewelry, there is always some value to the piece. If I were investing in gold, I would look at how many karats gold the piece is, which will help to determine its worth. Purity standards have to do with the following:

  • How many karats of gold exist on the piece?
  • How much precious metal it retains compared to its weight?

Two different jewelry pieces could be the same weight, but if they have different purities, they will not hold the same value because one of the pieces varies in gold content.

Often, if you invest in gold jewelry, you may not get good quality precious metals. You must look at the number of karats and their gold purity percentage. Consider the following:

  • Twelve karats are 50 percent
  • Fourteen karats are 58.3 percent
  • Eighteen karats are 75 percent
  • Twenty-two karats are 91.7 percent
  • Twenty-four karats are 99.9 percent

If you know the piece’s purity, you can make better decisions about selling. I have personally sold gold pieces of jewelry at various pawn shops.

I got a decent amount of money from them. However, pawnshops do not have the resources to measure gold’s purity accurately.  

As a result, pawnshops will not always give you an outstanding offer. For this reason, you should know the value of your gold jewelry before you try to sell it.

You may be purchasing a designer name

Jewelry manufacturers do not make gold jewelry for investment purposes. Buying bling from a reputable name will cost you a pretty penny.

If you are buying gold jewelry, you are paying a higher premium. The amount the piece costs will often cover the cost of production.

Therefore, a glittery gold necklace costs more to make than a gold coin. Some of the most well known names in the jewelry business include the following:

  • Harry Winston
  • Cartier
  • Buccellati
  • Tiffany & Co
  • Hermes
  • Kering
  • Chanel
  • Valentino

These are just a few of the big-name jewelry manufacturers who transform gold into adornments with a dash of extravagance. You will need to pay high prices for these names. However, when you spend a lot on jewelry, you will rarely see a profit.

Pawnshops may give you some cash, but not a lot. These pieces are more for status than profit. Some internet-based companies will buy gold. You need to determine if it is worth it to sell.

Work that bling

The best thing about gold jewelry is that you get to wear it. What is the fun of purchasing a fantastic piece of gold jewelry, tossing it into a safe, and not wearing it?

You can accessorize to your heart’s content for years and still make a profit off your piece. The only caveat is that you do not want to wear the piece often. Keep it safe but feel free to take it out for special occasions.

Also, be extremely careful with your jewelry. You do not want to be walking down a city street and have some thug rip your necklace off and run.

Watch out for counterfeit items

With gold, there is always the risk of counterfeit items. The easiest way to avoid fake gold is to only purchase from reputable dealers.

Remember, though, when you invest in a good piece of gold jewelry, you will need to pay the jeweler’s prices.

Know that there are different types of gold

Some people do not realize that gold does not have to be bright yellow to turn a profit. There are many different types of gold you can invest in.

The different types of gold include the following:

  • Yellow gold is the most familiar type of gold. Be careful, though, as there is a lot of gold jewelry available, but it is sometimes not the real deal.
  • Rose gold is a pinkish color and is commonly used in engagement rings
  • White gold is more valuable than yellow gold. It is a platinum silverish color
  • Green gold is the one I would wear for my personal use. However, it is extremely rare and has a greenish tint to it. Very expensive.

There are some factors you should consider prior to purchasing. White gold is stronger and more scratch-resistant than yellow gold. Rose gold is the least expensive gold because it is cheaper than copper.

If you are looking to invest in gold, it is worth it to be able to distinguish from all the different kinds.

High demand can be the way

The investors who see significant returns with jewelry are the ones who, ultimately, make the profit. Buying gold when the demand is high proves to be challenging to make a profit.

Demand for “scrap” jewelry is not what is on the rise. However, people are going crazy about designer items.

They are not looking to profit from their jewelry, and they want to keep it and wear it. The real profit comes when you have high-end jewelry to sell.

When there is a “bubble,” and you happen to have some gold jewelry put away safe, you may want to consider selling. Make sure your piece is worth selling, and be certain that the place you are selling it to is reputable and fair.

Should You Buy Gold Jewelry as an Investment?

Gold can be a good investment if you are willing to be patient, strike when the time is right, and sell. However, you need to be mindful that you are likely to pay a hefty sum when investing in gold.

No matter what anybody says, authentic gold jewelry is always in fashion, especially when it is high-end. Enjoy your gold for as long as you have it.

Keep it safe for when you want to sell. If you sell it at the right time, your investment will be golden.