Why Gold Jewelry Is A Great Investment
If you’re a lover of clothing and accessories like me, you’ve likely learned the importance of investment pieces over “fast fashion” items that will end up absolutely worthless. If you buy a designer bag, you will most likely be able to sell that bag again at some point. And guess what? Jewelry is not that different - except that solid gold will never deteriate like leather - and its value will INCREASE over time!
Gold as universal currency throughout history
Gold has an insanely long history as a precious metal that accumulates in value. For thousands of years, people around the world have understood the inherent value of gold. Egyptians, who used gold as building material in the pyramids, were reportedly the first to create a currency exchange ratio in which one piece of gold was equivalent to two pieces of silver. This was the first documentation of people attributing more value to gold than any another precious metal!
The gold obsession dates back more than 6,000 years and is shared across cultures. For example, gold was coveted in Greece, China, and the Middle East, where it was common for people to keep stockpiles of gold jewelry and gold bullions in safes in case of an emergency. In addition, people fleeing violence or unrest often kept gold because its inherent value made it helpful in any country or place.
Gold has maintained its status as universal currency throughout history and still today, you will be able to pay in gold where ever you will go. Many people, also in the west, have gold coins and jewelry buried in their garden or hidden away in other easily accessable places in case of a war breaking out. If you have to flea, you can’t just swing by your safety box in the bank. The bank could even have been closed down, robbed or bombed before you got there. Gold should always be kept close. If you ask me - preferable around your neck and wrist! <3
Gold is a safe investment
Gold is actually considered to be one of the safest investments, since it has a history of recovering its value very quickly through economic downturns. The price often goes against the stock market or economic swings like the ones we have experienced during the pandemic. Meaning that when the stock market goes down, the gold price goes up. For example, The US central banks for example hold gold deposits to guarantee their depositors meaning that the US has the largest gold reserves globally – about 8,000 metric tons.
Gold is considered a hedge against the dollar or potential inflation, making it an especially valuable asset to have around during the economic uncertainty that we are experiencing these days.
Investors and financial analysts say that the value of gold could reach new highs this year, selling for as much as $2,100 an ounce. It’s currently selling for $1,800 an ounce – a price that has continued to steadily rise in the last year.
Prices on old gold jewelry are increasing
The price of gold has recently gone up again due to increased demand, but experts still say that it’s an excellent asset to help diversify your holdings. Typically, jewelry accounts for one to two-thirds of all gold demand, but half of the gold market was an investment during the pandemic. Experts point to economic instability brought on by the pandemic as the main driver of this phenomenon.
With the rising value of gold, experts also predict that gold and other fine jewelry will continue to gain value. Over the recent years, there have been a shift in how consumers think about jewelry: More people are choosing to by high-end, handmade, quality gold jewelry rather than mass produced jewelry that are more often too pricey for what they actually are (read: weight and carat are too low compared to price).
This has contributed to a thriving vintage and antique jewelry market since customers have learned that there’s actually a lot of value for money to find here. And that the value old pieces will even increase over time since the selection is becoming scarcer. if you buy a great vintage piece from the 1940s today - it will be an antique in 20 years - and be worth even more!
If you want to invest in gold jewelry
If you’re ready to invest in some gold jewelry, there are some things to keep in mind. First, pay attention to the quality and purity of the gold. The piece should be made out of solid gold, and not just be plated. It should be made in preferably 14K, and over. Most gold is appraised by weight, so the more significant and denser the piece, the higher the price you should expect to pay, and to earn when you sell.
In addition to that, I will personally also always recommend buying gold jewelry that makes your heart sing, and that you will enjoy wearing. This way your gold piece serves a dual purpose: You enjoy wearing it, and it will increase in value over time… Not be worn down like a bag or sweater. And if you need money, or don’t like the piece anymore, you can ALWAYS sell it again. And if you keep it for years it will be worth more than you paid for it.
To sum that up…
Gold and gold jewelry has a long history of serving as an alternative currency used across countries and cultures. It’s such a trusted currency that banks still keep it as a form of collateral cause when markets go down, gold doesn’t get affected or even goes up. So as you consider elevating your wardrobe or growing your jewelry collection, gold jewelry - especially vintage and antique - is an investment you can feel good about and earn money on in the long run.
What do you think? Will you be thinking of jewelry as in investment now? Or did you do that already?