Gold jewelry is not only beautiful. It is also an excellent investment asset. Even in the face of market volatility, economic crisis and volatility in exchange rates, it retains a high value. Therefore, gold can (and should) be used to accumulate and increase capital.

And let usually gold bars are used as investment instruments. Jewelry can also help preserve capital.

Why invest in gold over other metals?

Gold has been used for a long time as an investment instrument and a measure of value. It retains these economic properties to this day. Even states keep their budgets in gold and foreign exchange reserves, let alone private corporations and investors. The precious metal retains liquidity in any market condition and is highly practical.

Investing in gold is a great way to save money during a crisis. In retrospective (historical) terms, it has not experienced significant changes in value over the past decades – unlike dollars, real estate or stocks. At the same time, prices for equity assets were falling.

Simply put, it is gold that is a traditional and reliable asset:

  • Gold quotes are still an important indicator of the state of the global economy.
  • The price of gold is independent of political and social changes in a particular country, while the exchange rate is tied to social factors.
  • Gold is a highly liquid asset that is easily sold and demanded in any country.
  • Gold is a means of preserving capital. A significant increase in value is observed only in the long term, after several years of storage.

Moreover, gold is a convenient tangible asset. Unlike stocks or real estate, it is quite possible to take it with you when you move.

Why is jewelry better than bullion?

The Baltic countries are among the top European countries in terms of the purchase of gold jewelry. At the same time, experts note that the demand for items made of precious metals increases during periods of economic instability. So, over the past 5 years, the average price of gold jewelry has grown by almost 50%. In the long term, demand and cost will also increase.

Gold jewelry is characterized by a number of advantages:

  • Always in the price. The cost of jewelry made of precious metal is constantly increasing.
  • Can be used as a personal financial cushion. Even in the event of a serious crisis, they can be quickly and profitably sold by weight.
  • Can be used as an investment for the future. Gold has no expiration date and jewelry is not subject to sale or redemption requirements, so you can pass it on to your kids.
  • Ranked in the top 10 investment assets along with cars, coins, real estate, great wine, and so on.

Often, people who want to preserve and increase their capital buy precious metals from banks. These financial institutions offer several ways of owning such an asset. For example, you can open an impersonal metal deposit in which the invested money will be converted into gold. You can also buy directly bullion, investment coins, and even stocks of companies involved in gold mining.

However, it is the jewelry that is most practical and convenient:

  • Almost anyone can afford to buy gold jewelry, while bullion is the prerogative of wealthy citizens.
  • Jewelry is easy to transport and store. Bars and bullion coins require separate storage conditions, and even a small scratch can significantly reduce their value.

Plus, owning and using gold jewelry is more fun than bullion.

What jewelry are suitable for use as investment assets?

There are two types of jewelry that have investment value. The first one is traditional jewelry made of gold of a certain standard and inlaid with liquid stones. Such jewelry practically does not go out of fashion and remain in demand for decades. The second – rare copies of the author’s work, which have artistic, historical and collectible value.

Key characteristics of jewelry for long-term investment:

  • Gold fineness – not less than 585. It should be understood that pure precious metal is not used in jewelry. If the 585th sample contains 58.5% pure gold, and the rest is copper and silver, then the 375th sample contains only 37.5% pure gold.
  • Place of purchase – directly from the manufacturer or from an authorized reseller. When purchasing jewelry in small and “incomprehensible” stores, you may encounter a fake.
  • Inlaid with investment and highly liquid precious stones – diamonds, emeralds, rubies, sapphires. It is desirable that these stones weigh at least 1 carat, be clean, transparent and with a good color index.
  • Stones in jewelry have state certificates or issued by international laboratories.

Such jewelry will delight not only with its beauty, but also with investment opportunities – in a few years or decades they can be profitably sold.