Is gold jewelry a good investment in 2023? Throughout history, the only metal that has fascinated mankind so much is gold. Even these days it is one of the most precious metals but is gold jewelery a good investment even in these modern times of online currencies? Gold being a precious metal fascinated humans for so long and even caused many wars over it.
Gold jewelry was one of the most used forms of investment in old times but is gold jewelry a good investment even in 2023? If you're thinking of investing in gold jewelry then this article is all you need to get all the scattered information on the internet. in recent years there have been a lot of fluctuations in the gold market, but these fluctuations have failed to decrease the demand for gold.
Gold being a precious metal fascinated humans for so long and even caused many wars over it. There are many banks throughout the world that are currently in a race to increase their gold reserves by making various gold investments like gold jewelry, coins, and bars. So it is pretty much clear that gold have still a lot to offer in investment terms. Without wasting much time let us get started.
Is Gold Jewelry a Good Investment?
The brief answer to your question is yes. Since ancient times in many traditions like Indians and Mughals gold jewelry is regarded as a symbol of status and power. Even these days most of the gold jewelry is made and purchased by people. But what factors make gold jewelry such a valuable asset in these modern times of online investment options?
Let us have a close look at these factors that make gold jewelry worthy to be called a good investment option.
1. Natural Resource
As we all know gold is a natural reserve, and this means that one day maybe shortly, mankind will face the scarcity of gold. And it is simple economics that whenever an item has less supply then its price will rise proportionally. So it will be a wise decision to invest in gold jewelry. Gold is a natural resource which pretty much sums up the answer to your question about whether is gold jewelry a good investment or not.
2. Value Retention
Gold is one of those metals that will retain its value over time. In ancient times as well mostly all the kings used gold coins as a form of currency. They also often use gold jewelry as a prize possession. Hence we can conclude that since ancient times gold jewelry has been used as a hedge against economic certainty and inflation.
If we come to the present times to answer your question about whether is gold jewelry a good investment or not, I would like to state that there might be fluctuations in gold prices now and then, but in the long term, gold prices will certainly increase. Hence we can conclude that the value retention factor of gold jewelry has a major role in determining whether is gold jewelry a good investment in these modern times or not.
In ancient times gold jewelry was used as a form of trade, which means that gold jewelry had some liquidity back then. But in recent times the scenario has changed a lot. Gold jewelry currently does not have that much liquidity. This made investors think about whether is gold jewelry a good investment nowadays or not.
If you want another more liquid gold option then you can consider having gold coins or bars because these have more liquidity than gold jewelry. Hence we can say that the most crucial factor in determining whether is gold jewelry a good investment in 2023 is liquidity.
4. Wear and Tear
Another reason why you should not consider investing in gold jewelry is that when people wear gold jewelry it can go under wear and tear which reduces the cost of gold jewelry. But if you're investing your money in gold jewelry only to invest money then you have to keep in mind that you have to maintain the good condition of that jewelry.
On the other hand gold bars and coins do not have such a major drawback associated with them. this is because gold bars and coins can't be worn hence they are kept in a safe place which saves them from wear and tear. Hence we can say that wear and tear play a major role in determining whether is gold jewelry a good investment in 2023 or not.
5. Market Demand
Another factor that influences the value of gold jewelry is how the design of the gold jewelry is made, its craftsmanship, and the demand for a specific piece. This is an important factor because the additional value of gold is dependent on these factors. These factors can vary from design to design and market trends as well.
hence we can say that trends in jewelry can influence the market demands with great impact. So it's safe to assume that market demand has a great impact on determining whether is gold jewelry a good investment in 2023 or not.
Pros of Buying Gold Jewelry
There are many pros that can be considered when you buy any gold jewelry so let us look at all the benefits that you can get after buying gold jewelry.
Gold jewelry people buy not for having it for one or two days. It has long-term durability it can last really long. You can buy gold jewelry today and it can be in your home for the next generations so the first benefit that you can see of buying gold jewelry is that it can last really long and has long durability.
There are many metals that can be destroyed easily but gold is not one of them. You can store it for ages and it will come just as it was. This is one of the best benefits you can get after buying a piece of gold jewelry. Hence we can consider that durability is one of the pros that helps us to determine whether is gold jewelry a good investment or not.
2. Aesthetic Value
Gold being so glittery and shiny has fascinated mankind since ancient times. The major addition to the fascinating feature of gold is gold jewelry. One thing that you should keep in mind is that gold jewelry is not just an investment, it is considered one of the best wearable works of art that humans have seen till now.
There are a lot of people, especially women who consider craftsmanship, the beauty of gold jewelry as well as design as a work of art. Moreover, people have a lot of sentimental value attached to it as they have passed down from generation to generation. Therefore it is pretty clear that aesthetic value adds a lot of weightage in determining whether is gold jewelry a good investment or not.
3. Tangible Asset
Unlike other good investments such as crypto coins or stocks, gold jewelry is a tangible asset. Unlike some other investments, gold jewelry is a physical, tangible asset that you can see and touch. This can provide a sense of security, especially during times of economic uncertainty.
- Cultural Significance: Gold jewelry has cultural and traditional significance in many societies. It can be passed down through generations as heirlooms, carrying family history and stories.
- Diversification: While gold jewelry might not offer the same level of diversification as other investment options, it still represents a form of diversification within your overall investment portfolio.
- Limited Supply: Gold is a finite resource, and mining new gold can be expensive and time-consuming. This limited supply can potentially contribute to the long-term value of gold jewelry.
Gold is not like other metals it can be customized as per your choice and need the way you want gold to mold you can do that and make new jewelry out of it. You can have customized jewelry according to your style. This is one of the best pros of gold jewelry that can be seen.
Jewelers customize gold jewelry and can make different and unique designs as per their choice and also as per their customer demand. Gold jewelry is very beneficial if we talk about customizing it into different designs.
Drawbacks of Investing in Gold Jewelry
We have seen the benefits of investing in gold jewelry it is smart to have a look at the drawbacks as well. We have to keep drawbacks as well in our minds before investing in gold jewelry. There are some drawbacks as well that we should consider let us quickly go through the drawbacks.
1. Risk of Theft and Loss
Gold jewelry is a premium metal that is appreciated by almost every individual and everyone knows how much value gold jewelry holds so it is very common that people are there to rob it too. There is always a risk that your gold jewelry can be theft and you cannot afford to lose it too.
There is also a risk of losing your gold jewelry you have to take care of your gold jewelry all the time. You cannot afford to lose your gold jewelry at any point. This could be one of the main drawbacks of having gold jewelry, You should keep in mind before investing in gold jewelry.
2. No Passive Income
There are plenty of options out there for investing and stocks and mutual funds are a part of them. You also get some rental amount or passive money from other places if you invest there, but investing in gold jewelry is different from all of this. You will not be getting any passive amount by investing in gold jewelry.
Once you invest in gold jewelry then it's done you won't get any rental amount like you get from the other investing options which can be seen as a drawback of investing in gold jewelry. You should consider this before you decide to invest in gold jewelry.
3. Complexity of the Valuation
value of two same-weighted gold jewelry can never be the same. It is a little complex but it is true. The price of the gold jewelry not only on the weight of the jewelry but also on the design of that particular jewelry. You should keep in mind that different design holds different value.
If you purchase jewelry weighted 250G with a simple design and on the other hand you purchased 150G with a unique design then the second jewelry will hold more value than the first one. The value of gold jewelry can be a little complex and that can be seen as a drawback of gold jewelry.
4. Wear and Tear
Gold jewelry can be worn over time and even after generations and gold is just a metal so it is obvious that it can get some dent, some tears when you wear it for a long time. This can be counted as a drawback as well. By getting some dent and tear in the gold jewelry this can reduce the value of that gold jewelry.
You should keep in mind that once you purchase gold jewelry for a long time this is going to happen and you have to take care of it. Before investing in gold jewelry this is a drawback you should definitely consider.
Frequently Asked Questions (FAQs)
Let us go through some frequently asked questions asked by people.
Q1. Can I make a profit by investing in gold jewelry?
A1. It is possible that you can make a profit by investing in gold jewelry but remember one thing it is not guaranteed that you will make a profit by investing in gold jewelry. There is a possibility that some vintage or historically significant pieces can make you more profit than regular gold jewelry but as I said it is not guaranteed.
Q2. Is there any risk in investing in gold jewelry?
A2. There are some risks or I would say some factors that you should keep in mind if you are thinking of investing in gold jewelry. We know we get passive incomes when we invest in other places such as mutual funds or FDs but in this case, you won't be getting any passive incomes after investing in Gold jewelry that can be a risk that you should consider before investing in gold jewelry.
Q3. Should I invest in gold jewelry?
A3. That is a question that only you can answer. There are some factors that you should consider before investing in gold jewelry such as liquidity, value retention, market demand, and many more and then there is a risk that you won't be getting any passive money by this as you usually get from other types of investment. After all things keeping in your mind if you want to invest in gold jewelry then I would say go for it.
Gold jewelry never goes off-trend. You name any generation and they all liked to have gold jewelry with themselves. Many people see gold as an investment as well but then the question comes Is gold jewelry a good investment? Should I invest in gold investment, what are the things I should keep in mind before investing in gold jewelry?
We tried our best and provided all the information that you should have if you are thinking of investing in gold jewelry. I hope you liked this article and found what you were looking for at the start of the article. Share this article with your family and friends especially those who are thinking of investing in gold jewelry. If you have any queries related to this article ask us in the comment section we will reach out to you ASAP. Stay connected for your upcoming articles.