Many look upon jewelry as a statement of art or a personal decoration that defines their appearance. For the wearer, gold can not only enhance strong emotional feelings about a person’s appearance, but it can also make a person feel beautiful, successful, indulgent, confident, and/or sexy.
Since gold has a long lasting financial value, it can support the buyer’s decision when purchasing jewelry in general, or specifically gold jewelry. This may be one of the reasons why people desire and purchase gold jewelry. 18kt, 14kt, and 10kt jewelry has long been defined and marked making it a “purchase investment opportunity”.
The key is to know if the piece of gold jewelry is worth purchasing for the gold value versus the design value. These are the two factors that make up a piece of jewelry. By taking the design value out of the equation, a factual decision can be made on purchasing jewelry as a gold investment.
Take a look at the cost of what you are buying. There are 4 factors:
1. Weight of Gold Jewelry
2. Price of Gold Jewelry
3. Design Allowance of Gold Jewelry
4. Price of Gold Jewelry
An example (gold only jewelry - no gemstones):
* Price of Gold Jewelry - $4000
* Weight of Gold Jewelry - 5 grams
* Price of Gold - $600/gram
* Value of Gold - 5 grams x $600/gram = $3000
* Design Allowance of Gold Jewelry - (Price of Jewelry - Value of Gold) - $4000-$3000 = $1000
* Design Allowance Percentage is $1000/$5000 = 20%
Look for Gold Jewelry where Design Allowance Percentage is 20% or less for Gold Investment. If the Design Allowance Percentage is higher that 20% it will be difficult to get your money back if you sell, as styles go out of popularity.
Summary
Why not purchase gold jewelry as an investment. Gold is known for holding its value, even if the stock market is in a downturn. By looking at the facts, it becomes an easy decision to make.
No Comments »
Filed under: Jewelry Making
