For centuries, gold has been prized and cherished for its luster and rarity. It has also been used as currency for thousands of years. Gold has been melted, carved, and poured into objects of desire. For hundreds of years, gold jewelry has been produced as a symbol of wealth. Gold has value.
It makes sense that if you’re buying going jewelry, you want to ensure you’re getting your money’s worth. You want your investments to hold their value.
Purity of Gold Jewelry
Most common gold jewelry is made of 14k or 18k gold, which is a gold alloy mixed with other metals to give it more durability and reduce the cost. However, when purchasing gold jewelry at retail, the prices that jewelers command are often several multiples above the intrinsic value of the metals.
For example, a simple 14k gold bracelet might weigh 3 grams and cost $200. The purity of 14k gold is only 58.83% gold. The remaining 41.17% is a mix of other metals.
The spot price of gold is around $41 per gram for pure .999 24k fine gold; the value per gram of 14k gold would be around $24 per gram. So, the intrinsic value of a 3-gram 14k gold bracelet is only around $72. Yet, it has a retail price of almost three times the inherent value of gold.
24k Investment Grade Jewelry
Today, various companies produce jewelry in 24k gold designed as a store of wealth. Products such as a 1 troy ounce 24k gold bracelet can be purchased for around a 10% premium over the spot price. For comparison, the average dealer premium for a Random Year 1 oz Gold American Eagle Coin is typically around 5%.
Other companies, such as Mené, Auvere, Gold Without Borders, and others, offer jewelry that is more fashion-focused but still produced using 24k or 22k gold. Gold jewelry produced in 24k gold is very suitable as a store of wealth.
Why 24k Gold Jewelry as a Store of Wealth?
There is growing financial uncertainty in economies around the globe. Using gold jewelry as a store of wealth has been common practice for thousands of years.
Having 24k gold jewelry as a store of wealth is a portable and easily concealable way of moving wealth with you without having to carry large amounts of cash.
It would be easy to travel with several 24k gold bracelets tucked neatly under your shirt sleeve, which would be virtually unnoticeable, or even a shirt with 24k gold buttons, which could be easily traded for local currency once you reach your destination.
Anyone crossing international borders must declare financial instruments valued at over $10,000. Jewelry made from 24k gold isn’t a financial instrument and, in most cases, does not need to be declared when traveling internationally. It’s effortless for an individual to carry over $10,000 worth of 24k gold jewelry while traveling.
Just as with other forms of precious metals, such as coins, bars, and rounds, investing in 24k gold jewelry makes practical sense. Jewelry made from 24k gold is an excellent store of wealth. The value of the jewelry is not diluted by outrageous retail markups and the use of alloys to reduce its purity.