Home ยป Is purchasing gold jewellery a wise financial move?

Is purchasing gold jewellery a wise financial move?

by Mangesh Shinde
Is purchasing gold jewellery a wise financial move?

You will be interested in the subject of investing in the current climate, whether you are an aspirant Gen Z person or a conscientious Gen X consumer. Investments are crucial because they allow us to preserve our wealth and provide a practical means of putting our money to work and maybe generating income. Although there are various methods to invest, including equities, bonds, commodities, mutual funds, and even cryptocurrency, would gold jewellery be seen as a sound option?

Gold jewellery has always been a common type of decoration, especially among the wealthiest and most influential individuals in ancient communities. Gold was prized for its aesthetic appeal, scarcity, and durability. It was frequently used to create elaborate jewellery that both men and women wore to denote status. Furthermore, gold jewellery was frequently passed down from generation to generation as a family legacy, serving as a means of wealth transfer.

Gold jewelry’s aesthetic appeal and design are becoming more frequently linked to it. However, if we were to assess it just within the context of an investment, which is defined as an item purchased with the intention of producing income or capital growth, we would see that it really fits inside it very well.

Gold jewellery is a great investment for the following reasons:

Over time, gold jewellery keeps its value.

Due to the fact that the cost of jewellery made of 916 or 999 gold is mostly based on the price of gold at the time of purchase, gold is a great investment.

This implies that when gold’s value increases, so does the value of your gold jewellery. Although it is hard to foresee short-term changes in the price of gold, gold has historically performed as an asset whose value has increased over time.

An effective inflation hedge is gold jewellery.

Gold does particularly well when there is significant inflation since it is a safe-haven asset. Isn’t it wonderful to know that the gold jewellery you bought to wear and beautify yourself with also helps you hold onto value during difficult financial times?

When inflation has been more than 3%, gold has returned an approximate average of 15% annually, according to a World Gold Council research that used data collected from 1971. Gold has historically returned an average of little over 6% annually when inflation has been under.             

A precious metal with exceptional durability is gold.

It is crucial that your asset be durable in nature. You may retain it in the same condition and sell it later on for more money if you do this. Gold is a non-ferrous metal that exhibits very little environmental reactivity. This indicates that it won’t tarnish or corrode and will remain spotless for many years.

As a result, gold jewellery is quite strong and, with proper care, will endure a very long period. In addition, gold jewellery has a reputation for being fairly timeless. This implies that if you pick a suitable design for your gold jewellery, you may wear it indefinitely while still looking stylish.

Gold Jewellery Can Be Moved Physically

Many of these assets, in contrast to stocks, bonds, ETFS, or even cryptocurrencies, are kept digitally or on paper. There is no other kind of investment outside gold jewellery that enables you to easily transfer cash from one location to another in the case of an unanticipated emergency that forces you to migrate physically.

It is simple to pawn your gold jewellery at reputed pawnshops for quick sales and money exchanges because gold is a liquid asset.

Jewellery made with gold has sentimental value.               

Unlike other alternative investment options, gold jewellery is frequently bought for gifting and aesthetic reasons in addition to investment purposes. Gold jewellery is frequently given as a cherished present from close friends and family members once it is bought.

This indicates that your purchase or gift of gold jewellery is priceless since it has significant emotional worth in addition to its monetary value.

Defending Against Possible Defences Against Gold Jewellery as an Investment

Jewellery Made of Gold May Be Damaged

Gold jewellery can be damaged, however this usually relates to the jewellery item rather than the actual gold component. Pure gold is very pliable, making it possible to delicately sculpt it into complex, exquisite pieces. In contrast, 916 or 22K gold is tougher and more durable, making it ideal for everyday use.

You may also take the broken pieces of your gold jewellery to a jeweller to get it fixed.

Gold jewellery typically has high markup costs.  

Based on excessive markups from the jewellers themselves, certain publications or cynics may disparage gold jewellery as a bad investment.

However, if you went to a respectable jewellery retailer like Swarajshop, you would be able to see the complete transparency of the craftsmanship pricing for our 916 Gold and 999 Gold items. This enables you to estimate the cost of the complicated and excellent workmanship, which ultimately supports the lives of the gold artisans.

The intricateness and complexity of a piece of gold jewelry’s design determines its craftsmanship. The costs associated with the workmanship increase with more detailed and elegant it is.

Final Thoughts on Gold Jewellery as an Investment

The choice to buy gold jewellery should be considered as a multifaceted one that encompasses several factors, including the desire to commemorate special moments, aesthetic and sentimental appeal, and value preservation.

Before choosing an investment instrument, it’s crucial to know what your main objectives and timescale are when it comes to investing. This should be done in a methodical, deliberate manner, maybe with the help of a qualified financial counsellor.

However, we believe that nothing matches wearing gold jewellery as an investment that will provide you a powerful sense of emotional and aesthetic fulfilment! It is current, timeless in design, and will continue to have value for many more years to come.

You may also like

Adblock Detected

Please support us by disabling your AdBlocker extension from your browsers for our website.