If you're looking for a stable investment, you might be considering buying gold. While most people find that accumulating gold bars and coins are a great way to build wealth, it isn't always easy to obtain these items a little at a time. However, buying gold jewelry is a viable option to obtain gold at an affordable price, in the hopes that the gold content will rise in value over time. This guide explains the pros and cons of buying gold jewelry as an investment.
Pro #1: You Get the Close to Market Value When You Sell
Just like gold bars and coins, gold jewelry provides a return on investment. It doesn't matter if the gold is in jewelry instead of a nice heavy bar. When gold is sold, it is weighed and buyers make you an offer based on the weight, the going rate per ounce, and the amount of gold that your jewelry piece contains.
Pro #2: Gold Jewelry Is Cheaper to Purchase
Unless you have a lot of money to call up one of the major gold brokers, you might be hard pressed to find a way to purchase gold bars or even coins. Because these items are supposed to be completely made of gold, or in the case of gold coins, mostly made of pure gold, these items can be out of reach for those just starting out in investing. But, gold jewelry is available nearly everywhere and can be purchased with a lot less money.
Con #1: Jewelry Styles Come and Go
Even if you don't want to wear the jewelry, it is important to remember that jewelry styles come and go. This means that it might be difficult to sell your jewelry down the road if the piece is obscure or even too trendy.
Con #2: Value of Craftsmanship Is Not Considered In the Sale
When buyers look at your gold, they only take into consideration what the value of the actual gold is. The expert craftsmanship is not taken into consideration at all. So, if you have some extremely detailed pieces, or even one-of-a-kind masterpieces, a gold buyer still only looks at the weight of the gold when making you the offer.
Consider the pros and cons of investing in gold jewelry before you decide to shop around for pieces that you feel might bring you a nice return in the future. Have all your gold pieces appraised by professional gold and silver buyers so that you'll always know how much you can get for your jewelry, or even to use the gold as collateral on a loan.
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