For centuries, gold has been prized and cherished for it’s luster and rarity. Gold has been used as currency for thousands of years. It has been melted, carved and poured into objects of desire. Gold jewelry has been produced for hundreds of years as a symbol of wealth. Gold has value.
So it makes sense that if you’re buying going jewelry you want to make sure that 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 that is mixed with other metals to give it more durability and to reduce the cost. However, when purchasing gold jewelry at retail the prices that jewelers command is 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 being 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 has a retail price of almost three times the intrinsic value of the gold.
24k Investment Grade Jewelry
There are a variety of companies today producing jewelry in 24k gold that is meant as a store of wealth. There are products, such as 1 troy ounce 24k gold bracelet that can be purchased for around a 10% premium over 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 that is produced in 24k gold is very suitable as a store of wealth.
Why 24k Gold Jewelry as a Store of Wealth?
There is a lot of growing financial uncertainty in economies around the globe. The use of 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 1 troy ounce 24k gold bracelets tucked neatly under your shirt sleeve that would be virtually unnoticeable, or even having a shirt with 24k gold buttons which could be easily traded for local currency once you reach your destination.
Anyone crossing international borders is required to declare any 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 very easy for an individual to carry more than $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 makes an excellent store of wealth. The value of the jewelry is not diluted by outrageous retail markups and the use of alloys to reduce the purity.
