A Guide To Buying Gold Jewellery As An Investment (2024)

A Guide To Buying Gold Jewellery As An Investment (1)


  1. Why Is Gold Jewellery A Good Long-Term Investment?
  2. How To Buy The Right Gold Jewellery Investment Piece
  3. How To Sell Your Gold Investment

Gold is known as a valuable asset throughout history and is considered a great investment due to the rarity and scarcity of the metal. Did you know that the price of gold reached an all-time high on the 8th March 2022? With this in mind, it’s no surprise that more people than ever are wanting to know how to invest in gold jewellery. In fact, each month over 1,000 people are searching the web for "how to invest in gold" - a search term that has increased by 82% compared to May 2021, which shows the interest in gold is only growing.Following the impact of the coronavirus pandemic on the global economy, stock market investments are no longer as safe as they once were. This has forced investors to increase their stock in alternative, more reliable investment sources.In this blog post, we answer all your questions about investing in jewellery.

Why Is Gold Jewellery A Good Long-Term Investment?

When compared to other popular long-term investments, gold has long been considered a reliable option. There are many reasons for this, but primarily because the price of gold rarely decreases and is known to increase in times of economic hardship — unlike most other investments. Because of this, investors often include gold in their portfolios, utilising this precious metal as a hedge against inflation.The price of gold increased during the 2008 financial crisis, and this was a similar case during 2020’s global pandemic. From January 2020, the average price of gold has increased from around £37/g to around £47/g.

A Guide To Buying Gold Jewellery As An Investment (2)

Source: goldprice.org

The minimum buy-in for gold jewellery is also significantly lower than if you were to buy other reliable long-term investments such as real estate. For example, the minimum buy-in for real estate is usually around £75,000, whereas you could buy a solid gold ring for as little as £250.In addition, you can even wear your investment as a fashion statement without affecting its value, as long as it is properly cared for.

How To Buy The Right Gold Jewellery Investment Piece

When you’re looking to invest in gold jewellery it’s important that you choose a piece that will return your investment with a profit. From ensuring authenticity to getting a professional valuation, here are the most notable ways to ensure you buy the right gold jewellery investment piece.

Think About Authenticity

Firstly, and most importantly, it’s crucial to ensure that you’re buying your investment jewellery from an authentic, reliable supplier. Many less reputable brands are known to offer costume jewellery — i.e. gold-plated — whilst labelling it as authentic fine jewellery. Buying inauthentic pieces is an easy mistake for junior investors, and one that happens all too often.In order to ensure the authenticity of your supplier, try and find some customer reviews from a genuine review website such as Trustpilot.All trusted online jewellers should have an Assay Assured certificate or be listed in Assay Assured’s online jewellery retailer directory. Finally, we’d always recommend buying from a jeweller that offers returns, just in case it isn’t quite what you expected.

Less Manual Labour = Better Jewellery To Invest In

Now this might be slightly counterintuitive — many people think the more attention-to-detail and care that goes into a piece of jewellery, the more expensive it will be. And this is true, but it also means that you’re paying for labour on top of the value of the physical gold and gemstones that are used. With this in mind, it’s understandable why only a very small percentage of complex jewellery pieces should be used for investment purposes. This is also one of the main reasons why watches are so much more expensive than other jewellery types in terms of price per gram of gold.If you’re looking for investment jewellery, we usually recommend buying a solid gold chain or bracelet, as these pieces usually require minimal craftsmanship. Gold sovereign coins are also popular as investment pieces, as they do not require any craftsmanship and can be easily melted down.

Professional Appraisal On Jewellery’s Worth

One of the first steps for buying any investment jewellery is to calculate how much it is worth. From here, you can determine how much you should be paying for the piece in order to make it worthwhile. If you’ve ever wondered “How much is my ring worth?”, then you’re already well on your way to investing in gold jewellery.Some jewellery stores offer appraisals upon purchase; for example, here at Hatton Jewellers we provide professional appraisals with most jewellery orders. However, in the case that your jeweller does not offer this service, we always recommend getting this completed by a third-party.

Always Insure Your Gold

Following on from the last point, receiving an appraisal will allow you to insure your investment jewellery. With many experts recommending to keep your jewellery investment for a minimum of 15-20 years, you never know what could happen in this length of time, so it is important to protect your assets. Skipping on insurance is certainly not worth the risk.

Avoid New Diamonds

New jewellery that contains a diamond is generally considered a bad investment. Did you know that diamonds lose over 50% of their value the second you leave the jewellery store? Yes, that’s right — if you’re buying an iced out bracelet as an investment piece, then you’ve made a serious mistake.Buying second hand diamond jewellery, such as engagement rings, can often lead to significant savings. This means that, if you can find the right pre-owned diamond piece, you could benefit from a successful investment; especially with antique or vintage pieces.

Buy Jewellery You Like

Last but certainly not least, we recommend only investing in jewellery that you actually like. It’s not just about the money; part of the fun of jewellery investing is buying fine pieces that you can enjoy wearing. If you’re shopping for something that you like, then you’ll be more patient with the shopping process, and you’re more likely to make smarter purchasing decisions.

How To Sell Your Gold Investment

As with all investments, you may reach a point where you want to sell your gold jewellery in order to ‘liquidate’ your investment. Fortunately, as you have invested in gold, you are in a great position to sell no matter where in the world you are or when you want to sell. This is because gold is a universally recognised asset so there will always be a market for selling.When it comes to selling your gold you must make sure you’re selling to a reputable source - a buyer with a good reputation. You have a few different options when it comes to finding a gold buyer: jewellers, pawnbrokers or online buyers should all make you an offer for gold. Here at Hatton Jewellers, we’ll buy your solid gold if you simply visit us in store or arrange a telephone valuation. We always aim to give customers a fair price, offering a rate that reflects the gold market. To find out more about selling your gold jewellery investment check out our guide to selling gold jewellery.Do you have any other advice or tips for buying jewellery as an investment? We’d love to hear! Let us know on Facebook or Instagram!For more articles like this, why not check out the Hatton Jewellers blog?

As an enthusiast and expert in the realm of investment, particularly in precious metals like gold, I've delved deeply into the nuances of this market over the years. My knowledge spans from historical trends to contemporary shifts, and I've actively tracked the various factors influencing gold prices and investment strategies. Here's an analysis of the concepts mentioned in the article "Why Is Gold Jewellery A Good Long-Term Investment?" along with additional insights:

  1. Gold as a Reliable Investment: Gold's status as a valuable asset with a long history of maintaining its worth is well-documented. Its scarcity and resistance to devaluation, especially during economic downturns, make it an attractive option for investors seeking stability amid market volatility. The evidence provided in the article, such as the price surge during the 2008 financial crisis and the 2020 global pandemic, corroborates this view.

  2. Comparative Investment Analysis: The article compares gold to other long-term investments, highlighting its advantages over traditional options like real estate, particularly in terms of accessibility and affordability. This analysis underscores the versatility of gold as an investment vehicle, appealing to both seasoned investors and those entering the market with smaller capital.

  3. Factors Influencing Gold Prices: Understanding the factors driving fluctuations in gold prices is crucial for making informed investment decisions. Economic indicators such as inflation rates, geopolitical tensions, and currency devaluation play significant roles in shaping gold's value over time. By citing the price data from goldprice.org, the article provides tangible evidence of these fluctuations, reinforcing the argument for gold's viability as a long-term investment.

  4. Authenticity and Quality Assurance: When purchasing gold jewellery as an investment, ensuring authenticity is paramount. The article emphasizes the importance of buying from reputable suppliers with proper certifications, such as the Assay Assured certificate. This underscores the need for due diligence and research to mitigate the risk of purchasing counterfeit or inferior quality jewellery, which could undermine the investment's potential returns.

  5. Minimizing Labor Costs: The article advises investors to opt for simpler jewellery pieces with minimal craftsmanship, as these typically offer better value in terms of gold content. This insight aligns with the principle of maximizing the intrinsic value of the investment while minimizing extraneous costs, thereby enhancing the potential for long-term appreciation.

  6. Professional Appraisal and Insurance: Appraising the value of investment jewellery and securing adequate insurance coverage are essential steps in safeguarding one's assets. By providing guidance on obtaining professional appraisals and emphasizing the importance of insurance, the article addresses key risk management considerations for investors, enhancing their confidence in the investment's long-term viability.

  7. Market Dynamics and Selling Strategies: Understanding market dynamics and having a clear exit strategy are vital aspects of any investment venture. The article offers practical advice on selling gold jewellery, highlighting the importance of choosing reputable buyers and staying informed about market trends. This holistic approach underscores the article's commitment to empowering investors with the knowledge and resources needed to navigate the gold market effectively.

In conclusion, the article "Why Is Gold Jewellery A Good Long-Term Investment?" offers valuable insights into the rationale behind investing in gold jewellery and provides actionable advice for prospective investors. By incorporating historical data, comparative analysis, and practical recommendations, the article equips readers with the knowledge and tools necessary to make informed decisions in this ever-evolving investment landscape.

A Guide To Buying Gold Jewellery As An Investment (2024)
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