Personal Finance

Lets talk gold jewelry; a way to hold value.

  • Last Updated:
  • May 19th, 2015 7:07 pm
Tags:
None
[OP]
Sr. Member
Feb 14, 2010
845 posts
842 upvotes
Toronto

Lets talk gold jewelry; a way to hold value.

After being bombarded with videos of Russell Oliver the cash man for years it got my wondering if investing in physical gold is a good idea. What's even better is that you can actually wear it.

I’m interested in 14k gold nugget rings. I can also wear it on special events as well. What do you people think about buying gold jewellery as a way to just hold value.
10 replies
Deal Expert
Aug 22, 2011
38193 posts
24381 upvotes
Center of Universe
thelastword wrote: After being bombarded with videos of Russell Oliver the cash man for years it got my wondering if investing in physical gold is a good idea. What's even better is that you can actually wear it.

I’m interested in 14k gold nugget rings. I can also wear it on special events as well. What do you people think about buying gold jewellery as a way to just hold value.
You will likely get far less than what you will initially pay for; when you decide to sell it.
Buying gold jewelry is not just the cost of the gold, but the cost in making it.
Best is to buy gold bars (I believe starts at 1oz) and keep those in a safe or security deposit box.
Deal Fanatic
Dec 6, 2006
5607 posts
1805 upvotes
Toronto
No.

Gold jewelry (or any jewelry) has a big premium for the design and craftmanship. You won't get anywhere you pay for any jewelry.
Member
Aug 20, 2014
226 posts
89 upvotes
Toronto, ON
thelastword wrote: What do you people think about buying gold jewellery as a way to just hold value.
As others have suggested, in my experience as well the value of gold jewellery drops by 20-30% as soon as you buy it. The more intricate the work, the more is the fall. While the value of the metal remains unchanged, money paid for workmanship is lost. If you were to sell it, the buyer needs to melt the jewellery item, purify the metal and then cast it into something else.

It would be much better to buy certified bars. Or buy into a fund that holds on to the physical bullion.
Jr. Member
Sep 5, 2013
162 posts
30 upvotes
thelastword wrote: After being bombarded with videos of Russell Oliver the cash man for years it got my wondering if investing in physical gold is a good idea. What's even better is that you can actually wear it.

I’m interested in 14k gold nugget rings. I can also wear it on special events as well. What do you people think about buying gold jewellery as a way to just hold value.
I see so many warnings in your post.
First you want to invest in physical gold after being bombarded with videos of Russell Oliver...
Then you intend to invest with 14k gold jewellery...
No better way to lose money!
[OP]
Sr. Member
Feb 14, 2010
845 posts
842 upvotes
Toronto
Actually my intent was not to invest large amount of funds into buying gold jewelry but just to pick up a few pieces of jewelry on eBay. So the jewelry will hold its value as well as the ability to wear it.
Does that change the picture.
Sr. Member
User avatar
Apr 5, 2009
948 posts
336 upvotes
Toronto
thelastword wrote: Actually my intent was not to invest large amount of funds into buying gold jewelry but just to pick up a few pieces of jewelry on eBay. So the jewelry will hold its value as well as the ability to wear it.
Does that change the picture.
Gold jewellery may hold value better than cars and designer clothing, but that's the extent to which you can use it as "investment". In other words, unless you derive significant pleasure from wearing it, it's not something you should be buying.
Deal Fanatic
Dec 6, 2006
5607 posts
1805 upvotes
Toronto
thelastword wrote: Actually my intent was not to invest large amount of funds into buying gold jewelry but just to pick up a few pieces of jewelry on eBay. So the jewelry will hold its value as well as the ability to wear it.
Does that change the picture.
Yes absolutely. It's even worse.
Deal Fanatic
Sep 23, 2007
5429 posts
1736 upvotes
When I was in HK, I bought some gold jewelry as gifts and for collecting. They are 99.999% gold. Craftsmanship costs in Hong Kong can be negotiated to be very low or even waived. They charge gold jewelry by the weight and using today's market price times a small commission %. So most of what I paid was for the value of the gold. Even then, I don't think it's really an investment. You buy jewelry because it can be gifted and because it can be worn. And if in the rare case that our currency devalues rapidly, I'd have some gold to sell/trade. But this is a very minor perk at best. If you buy in North America, you're definitely going to lose a huge chunk of your cost to labour costs.

I think it's less hassle and a better investment to buy gold bars or just invest in some gold companies. Unless you really like to wear gold or have multiple wives to gift your gold to, I don't think it's wise to stock up on gold jewelry.
Deal Expert
Aug 22, 2011
38193 posts
24381 upvotes
Center of Universe
BananaHunter wrote: When I was in HK, I bought some gold jewelry as gifts and for collecting. They are 99.999% gold. Craftsmanship costs in Hong Kong can be negotiated to be very low or even waived. They charge gold jewelry by the weight and using today's market price times a small commission %. So most of what I paid was for the value of the gold. Even then, I don't think it's really an investment. You buy jewelry because it can be gifted and because it can be worn. And if in the rare case that our currency devalues rapidly, I'd have some gold to sell/trade. But this is a very minor perk at best. If you buy in North America, you're definitely going to lose a huge chunk of your cost to labour costs.

I think it's less hassle and a better investment to buy gold bars or just invest in some gold companies. Unless you really like to wear gold or have multiple wives to gift your gold to, I don't think it's wise to stock up on gold jewelry.
99.999% pure gold...wouldn't it be too soft for jewelry?
Deal Fanatic
Dec 6, 2006
5607 posts
1805 upvotes
Toronto
vkizzle wrote: 99.999% pure gold...wouldn't it be too soft for jewelry?
Yes. But those 99.9999% gold jewelry is basically for show (i.e. weddings), gifts and keep-sake only. You won't be wearing them on a regular day (or ever).

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)