Many look upon jewelry as a
statement of art or a personal
decoration that defines their
appearance. For the wearer, gold
can not only enhance strong
emotional feelings about a person’s
appearance, but it can also make a
person feel beautiful, successful,
indulgent, confident, and/or sexy.
Since gold has a long lasting
financial value, it can support the
buyer’s decision when purchasing
jewelry in general, or specifically
gold jewelry. This may be one of
the reasons why people desire and
purchase gold jewelry. 18kt, 14kt,
and 10kt jewelry has long been
defined and marked making it a
“purchase investment opportunity”.
The key is to know if the piece of
jewelry is worth purchasing for
the gold value versus the design
value. These are the two factors that
make up a piece of jewelry. By
taking the design value out of the
equation, a factual decision can be
made on purchasing jewelry as a
gold investment.
Take a look at the cost of what
you are buying. There are
4 factors:
1. Weight of Gold Jewelry
2. Price of Gold Jewelry
3. Design Allowance of Gold Jewelry
4. Price of Gold Jewelry
An example (gold only jewelry – no gemstones):
• Price of Gold Jewelry - $4000
• Weight of Gold Jewelry – 5 grams
• Price of Gold - $600/gram
• Value of Gold – 5 grams x $600/gram = $3000
• Design Allowance – (Price of Jewelry – Value of Gold) - $4000-$3000 = $1000
• Design Allowance Percentage is $1000/$5000 = 20%
Look for Gold Jewelry where Design Allowance Percentage is 20% or less for
Gold Investment. If the Design Allowance Percentage is higher that 20% it
will be difficult to get your money back if you sell, as styles go out of popularity.
Summary
Why not purchase gold jewelry as an investment. Gold is known for
holding its value, even if the stock market is in a downturn. By looking
at the facts, it becomes an easy decision to make.
