Is Gold Jewelry a Good Investment?

March 14, 2023

If you’re considering a gold jewelry investment, you may find that purchasing gold bullion coins or bars is a better option. Understanding the important differences between gold bullion vs. jewelry allows you to make an informed, confident decision on investing in gold most effectively. 

While everyone has unique financial goals and preferences, there are some universal truths you should know about before moving forward with your precious metals investment. Regardless of its form, physical gold makes a solid addition to a portfolio, adding much-needed diversity and stability. However, not all gold products are equal.

In this post, we’ll discuss the differences between a gold bullion and a gold jewelry investment so you can decide which is best for you.

All Gold Products Include a Premium

If your goal is to own gold because it’s a reliable, tangible store of value, gold coins and gold bars are the superior investment vehicle. Simply put, these products allow you to purchase gold as close to the metal’s spot price as possible. While there will still be a slight markup, you’re essentially paying for gold—and nothing else.

No matter where you purchase gold bullion, you will pay a few percent more than the spot price. This is called a premium. Gold’s premium fluctuates depending on a number of factors, such as current supply and demand and economic conditions. And, just like a gold jewelry investment, the premium also comes from the dealer, as they need to cover overhead costs.

Precious metals dealers have business expenses like any other company, such as storage, shipping, insurance, labor, customer service, and marketing. So, when weighing the differences between gold bullion vs. jewelry, you’ll want to consider which option allows you to purchase gold with the least amount of markup.

Jewelry Premiums Are Higher Than Bullion

A person holding a gold necklace

When you buy gold jewelry, you’re paying for much more than the gold itself. You’re also paying for the jewelry’s design, the work that went into crafting it, and often other expensive materials such as gemstones, diamonds, and other precious metals. 

Simply put, a gold jewelry investment means you’re getting less gold than you would if you spent the same amount of money on bullion. While jewelry prices vary widely, let’s say you spent $2,000 on gold bullion. You’re going to receive more than one ounce of gold as of February 2023. In contrast, a $2,000 pendant may only contain half an ounce of gold.

Beyond the markup costs, jewelry is a high-end product, which will naturally mean higher costs. While gold bars and coins are certainly beautiful to behold, their value stems from their intrinsic gold content. A gold jewelry investment means you’re purchasing a luxury item. In the same way a pair of designer jeans cost more than a generic equivalent, you’re paying extra to own an upscale product.

Bullion Offers Better Liquidity and Resale Value

As you compare gold bullion vs. jewelry, be sure to consider liquidity. After all, a physical investment is only truly worth what you can sell it for. The simple truth is that selling jewelry for a profit is extremely rare, and you’d be quite lucky to recoup your initial investment. Back to the designer jeans example—you wouldn’t expect a buyer to pay full price for used jeans, right?

A gold jewelry investment can be profitable, but the circumstances to allow that are unlikely. For instance, if you bought a handmade, one-of-a-kind necklace from a famous designer, you might be able to resell it later for a profit due to its collector’s value (assuming you can find a buyer). In this circumstance, however, you’re not investing in gold. You’re investing in art.

In contrast, gold bullion can be resold quickly and easily, should the need arise. Aside from the slight markup you paid initially, you’ll have no problem recovering your initial investment. And depending on the current spot price, you might even come out ahead. A gold jewelry investment can’t provide that kind of dependability and stability.

Bullion Stays in Pristine Condition

In most cases, people purchase jewelry because they want to wear it or give it to a loved one. In either situation, that jewelry will go through natural wear and tear over time. As you explore the differences between gold bullion vs. jewelry, think about how your investment will hold up.

Gold bullion can be held in a safe at home where it stays in its packaging, ensuring that it remains in pristine condition for decades to come. While there are ways to protect your gold jewelry investment, that’s not the typical way that jewelry ownership works. Jewelry is meant to be worn and admired. If you plan to keep it stored in a safe, you might as well own bullion.

Gold Coins and Bars Are Timeless

A variety of gold bullion coins and bars

Gold bullion coins and bars will never go out of style. They’re not susceptible to fleeting trends. On the other hand, jewelry designs come and go. If you decide to sell a piece ten years from now, there’s no guarantee it’ll be desirable beyond its intrinsic gold content. 

Gold jewelry and the fashion industry go hand-in-hand. You wouldn’t expect a trendy pair of designer jeans to be in style a few decades from now, right? A gold jewelry investment carries that same risk.

Gold bullion coins and bars aren’t typically valued as collector’s items, but many gain value over time. After all, coin collecting is a very popular hobby, and some coins are bound to become increasingly desirable as their available supply decreases. Standard gold bullion coins may even become highly coveted, valuable gold numismatics if the demand outweighs its supply.

Bullion Is a Straightforward Investment Vehicle

A big difference in gold bullion vs. jewelry is how they’re priced and valued. With gold coins and bars, you know exactly what you’re getting. You know precisely how much gold you own and what it’s worth at any given moment. A gold jewelry investment can’t offer that same level of straightforward information.

If you plan to sell your jewelry, you’ll need to have it appraised. And one appraiser may value it completely differently than the next. With gold bullion, the products are standardized. There’s no guesswork involved. Both you and the buyer know exactly what you’re working with, so there’s no confusion or discrepancies in expectations.

Numismatics Are Better Collectibles

If you want to own a gold product with significant potential for growth in value, consider numismatics. These are rare coins that possess collector’s value beyond their intrinsic precious metals content. In contrast to a gold jewelry investment, there will always be passionate coin collectors willing to pay top dollar to own a low-population, commemorative, or antique coin.

Jewelry just doesn’t have that kind of fervent community behind it. While there are certainly some people who collect jewelry, they’re not usually seeking out specific pieces. Investing in certain jewelry pieces—antiques owned by prominent figures, for example—can be a sound investment strategy. But most jewelry won’t command the same desirability among collectors.

Diversify Into a Time-Tested Store of Value

An assortment of gold bullion bars

If you’re interested in investing in gold, we encourage you to contact us for a free consultation with a qualified precious metals specialist before you move forward with a gold jewelry investment. We’ll be happy to answer your questions about gold bullion vs. jewelry and help you plan a gold investment strategy that aligns with your financial goals and preferences.

Now that you better understand the important differences between gold bullion and jewelry, we invite you to explore our selection of gold bullion products. While there are no guarantees in investing, gold bullion is famously reliable, especially when compared to a gold jewelry investment. 

Shop Gold with Confidence from Endeavor Metals

Endeavor Metals is a Tier 1 United States Mint bullion dealer. We bring more than 50 years of in-house experience to the table, and carry a wide range of precious metals products at competitive prices, including silver, platinum, and palladium. We have an A+ accredited grade on the Better Business Bureau and a 4.9 Google star rating because we go above and beyond for our customers.

Endeavor Metals provides a level of assurance you can’t get from a gold jewelry investment. All our products are fully backed by our 7-day, 100% money-back guarantee, even if the market has a downturn.

Additionally, we belong to numerous highly reputable organizations, including the prestigious Silver Institute, the Industry Council for Tangible Assets, the Certified Acceptance Corporation (CAC), and the American Numismatic Association. Secure your financial future with Endeavor Metals.

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