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Which Makes A Better Long-Term Investment: Gold Jewelry Or Gold Bullion?


Can Gold Jewelry Be Considered A Form Of Bullion?  

Gold jewelry is not the same as gold bullion. Gold and silver bars or coins that have been certified as at least 99.5% and 99.9% pure are considered bullion. Gold in jewelry is measured in karats. For those new to the world of fine jewelry, it is essential to know that 24K gold is 99% gold while 22K is 91% gold.  

Is Gold Jewelry Or Gold Bullion A Better Store Of Value Over Time?  

Gold jewelry is a beautiful addition to your wardrobe; some pieces can become more valuable with time. More factors go into how fine jewelry is priced than gold bullion. For individuals who are optimistic about the future of gold and want a more straightforward avenue, investing in gold bullion may be a better option. Bullion is a more reliable form of gold to invest in because its retail markups aren’t typically as high as gold jewelry. When it is time to sell, you are more likely to make your money back when selling gold bullion rather than gold jewelry. 

Since jewelry is exposed to wear and tear, jewelers can sometimes dilute the purity of gold with other alloys to help strengthen the piece. Because gold jewelry is worn you need to be sure to take good care of it to preserve it for the long run. Since bullion is often stored away, its condition generally remains the same since it is not exposed to the same wear and tear.  

How Are Gold Bullion And Jewelry Valued?  

Gold jewelry can be worth more than its gold content for several reasons. The price of a piece must also consider the craftsmanship, design, and brand name associated with it. All three components are integral in determining a product’s cost.  Bullion is typically valued by its gold content and gold’s spot price. Comparing bullion products of the same purity and weight is more manageable because they tend to have similar price ranges across brands.  

Which Is A Better Investment?  

When shopping for gold you can expect to pay a premium, regardless of whether you buy gold bullion or jewelry. When investing in fine jewelry you should expect premiums to be significantly higher than regular bullion. Craftsmanship and brand name contribute to the final price of jewelry, whereas the spot price primarily dictates the bullion price. You will likely get more for your money when you invest in bullion.  

There is something to be said for those who simply love wearing and owning fine jewelry. Sometimes, that is a buyer’s top priority. Jewelry can also hold sentimental meaning, especially when it is an heirloom passed through generations. If you want to invest in gold jewelry to give to your children or grandchildren, know that the melt value will likely be less than what it was valued when you purchased it. Still, you could be creating a new family tradition or heirloom—and that is valuable in a personal way.  

Which Is Easier to Sell?  

Compared to jewelry, bullion provides more liquidity. Some view used jewelry as scrap metal, which can make it more difficult for people to sell and get at least what they paid.  

Since the spot price determines gold bullion’s value, it can be easier to make a profit when it comes time to sell gold coins and bars. Gold bullion is a more liquid asset that can be quickly converted into cash.  

Key Takeaways 

What you chose to invest in is a personal decision. There is no right or wrong way to buy gold if you do what is best for your goals and priorities. Be sure to always research before making any big precious metals purchases to get the best option for you!  

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