Investment becomes an interesting topic for many people, including Gen X and Gen Z. Investing is a very important topic and it helps people retain their wealth. It is also a very effective way to make your money work and build potential income. Is gold jewelry a good investment?
Many decided to invest in jewelry, especially gold jewelry. You can invest in other ways like commodities, bonds, stocks, mutual funds, or cryptocurrencies instead of gold jewelry. But do you think gold jewelry is a great choice to consider?
Is Gold Jewelry A Good Investment? Here’s The Reasons
There are reasons why jewelry is an excellent investment. Today, gold jewelry is usually associated with its awesome design and aesthetic appeal. But an aesthetic look doesn’t mean gold jewelry is a perfect form of investment. Below are some reasons why you should consider jewelry as an investment.
1. It retains its value
The first reason is gold jewelry can hold its value over time. This kind of jewelry is an excellent investment. When you buy 999 or 916 gold jewelry, the jewelry’s price will be pegged to the gold price that prevails at the purchase point.
This means, when the gold’s value goes up, the value of the gold jewelry you own will go up as well. It is very hard to predict gold price fluctuations in the short term. But gold’s value on a long-term basis has performed consistently as a very appreciating asset.
2. It is an excellent hedge against inflation
Gold also acts as a safe-haven asset. It performs very well under high inflationary environments. Buying gold jewelry is a great idea since you can wear it to adorn yourself and will preserve its value in economic strain and difficult times.
World Gold Council conducted a study and stated that since 1971, gold returned an average of about 15$ per year, specifically when the inflation has been more than 3%. When inflation has been sub-3%, gold returned on average about 6% per year.
3. It is very durable
When you’re looking for gold jewelry to buy and invest in, keep in mind that the asset you have should be long-lasting. This characteristic will let you keep the asset in the same condition so that you can sell it at a much higher price somewhere in the future.
Since gold is a non-ferrous precious metal, it becomes highly unreactive to various environmental elements. It means your gold jewelry will not rust or tarnish. It will stay pristine no matter how long you keep it at home before selling it when you need to earn money.
A gold necklace and other gold jewelry are very durable and can last for a very long time if you’re taking very good care of each piece. And if you choose the right gold jewelry design, you can wear it all the time and stay fashionable for years.
4. It is physically portable
Why is gold jewelry a good investment? Because gold jewelry is very physically portable. Other assets like cryptocurrencies, ETFs, bonds, and stocks, are held in paper or digitally. If there’s an unforeseen circumstance and you must physically relocate your asset, gold becomes the best asset.
Gold jewelry allows you to bring your wealth quickly and easily from one place to another place. Gold is a liquid asset which means you can easily pawn it at any reputable pawnshop and get immediate sales and earn money.
5. Has sentimental value
Unlike many other forms of investments, people are not usually purchasing gold jewelry only for investment purposes. Many people purchase gold jewelry as a gift for their loved ones or family members. This means gold jewelry is not only the best investment.
Gold jewelry’s monetary value isn’t its only value. It also has an important emotional bearing that makes the purchase of gold jewelry as a gift more priceless. Are you ready to start purchasing gold jewelry and invest in it?
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What To Know Before Investing in Gold Jewelry
Before you start investing in diamond jewelry, gold jewelry, or other types of jewelry, you need to learn several helpful tips. These tips are going to help you purchase the best gold jewelry as an asset for your investment program.
1. Ensure gold jewelry’s authenticity
It is crucial to purchase jewelry from a reliable and authentic supplier. Less reputable brands usually offer gold-plated jewelry and label it as an authentic fine product. Gold, silver, palladium, and platinum are four precious metals that require hallmarking and testing.
After testing and hallmarking, they can be sold legally as genuine. Is gold jewelry a good investment? If it is genuine then it can be an excellent investment. You can check the authenticity of the supplier by finding customer reviews from various genuine review websites.
2. Choose plain solid gold jewelry
When purchasing gold jewelry assets that increase in value, you need to consider the design of the jewelry. Very detailed gold jewelry means you will also pay for labor in addition to the physical gold’s value and also the gemstones on the jewelry.
This is why watches can be more expensive compared to other types of jewelry in terms of the per-gram gold price. If you want to invest in jewelry and are wondering about which jewelry is a good investment, a solid gold bracelet or chain is the best recommendation.
Those pieces require minimal craftsmanship. Other options to consider are gold sovereign coins since they don’t require craftsmanship and can be melted down very easily.
3. Take out insurance
To make the most out of gold jewelry, consider keeping it for at least 15 to 20 years. However, you will not know what will happen in those years. Protect your gold jewelry with incurrence so that you can get the correct value.
If your gold jewelry is being valued on an annual basis, it will ensure that your insurance is always up to date.
Is gold jewelry a good investment? It is a very excellent asset for investment because of five different reasons. However, you need to know how to get the best gold jewelry that will maximize your return.