Buy and Sell Gold Jewelry: A Beginner’s Guide

Gold is one of the most precious metals that carry a high value. Demand for gold comes in different forms. Buying it is one of the best forms of investment, although it may vary according to the type of gold you put your money on. Business-wise, bars and coins are the best options for gold investment if you focus on the financial aspect. However, in this case, does jewelry also offer a good investment?

The industry of jewelry making has the highest demand for gold, having around 50% of the demand. Then again, is buying gold jewelry a safe way to invest? What should you consider when you are deciding to invest in such items? You need to think about these things before you decide to spend your hard-earned money to ensure that you won’t have any or as much regrets down the line.

Factors To Consider When Investing In Gold Jewelry

Many people have considered putting their money on gold jewelry investment as gold is one of the safest ways to invest in. (Image Source: Pixabay)

Investing in gold jewelry may not come as easy as you think. As it involves plenty of money, considering gold is of high value, there are factors that you would also need to consider before you make your investment. Here are a few:

  • Name or brand is one of the factors that affect the price. This is often called “brand power.” In such types, the design, edition, age, and craftsmanship add to the value. When you buy this kind, it is ideal to check the markings. They are commonly hidden in plain sight in order to preserve the elegance of the jewelry. These signify the karat, as well as the designer of the piece. Altogether, with the added value, the price may be higher than coins and even bars.
  • The places or situations wherein you’ll be wearing the jewelry is worth thinking about too. Be wary when investing in gold jewelry, especially when you are planning to wear the items publicly. It has a high chance of attracting undesirable people such as pickpockets and robbers. Always ensure your safety as well as your item’s security.
  • Gold content also affects the value. The higher the karat, the higher the value. A jewelry piece that appears large but has little gold content is going to have less value than a tiny item with higher metal purity. The same can be said of the gemstones embedded in the piece as a small diamond tends to fetch a higher price than a huge alexandrite.
  • The type you are going to purchase matters. Below are two of the different types:
    • Fine Jewelry The value of gold jewelry changes when diamonds or other precious stones are added. Although not often, gold comes at a lower value than the gemstones added. When you sell your fine jewelry pieces, make sure that you are selling it for its value as jewelry and not for the gold alone.
    • Vintage Jewelry Also known as “second-hand jewelry,” these have been rising up in retail. These days, vintage jewelry has gained more popularity than before. One reason is that people can purchase it at a lower price. The backstory also plays a role as most people love a good story. Some vintage jewelry has unique designs.

Vintage jewelry often exhibits distinctive details on its design, making it quite appealing to buyers. (Image Source: Pixabay)

Pros and Cons When You Buy And Sell Gold Jewelry

When thinking of investing in gold jewelry, you may ask yourself if you are making the right call. Would it be worth it? Would I not be wasting my money? Below are the pros and cons of investing in gold jewelry that can help you in deciding when investing:

Advantages of Investing in Gold Jewelry

  1. They are timeless and can be used every day and/or on occasion. Gold jewelry never goes out of fashion. As years go by and you no longer desire to use them, you can very well decide to sell them.
  2. They have both artistic and monetary value. They will give you the guarantee of earning a return on your investment when you sell them, regardless of them being in jewelry form instead of a bar or a coin. When you sell gold jewelry, the item is weighed. The buyers will then make you an offer, depending on the weight. The offer will go for “rate per ounce” as well as the purity of the gold content.
  3. They are cheaper and easier to find compared to purchasing bars and coins. They can be bought almost anywhere and at far lower prices. Only, this may just apply to items that are not made by big names in the industry that have added factors on its value, as mentioned above.
  4. They are far easier to transport. You can secure them in an inner pocket of your jacket, for instance.

Disadvantages of Investing in Gold Jewelry

  1. They are mostly not made of pure gold in comparison to bars and coins. The purity varies according to the karat number. The higher the karat number is, the more gold content it has.
  2. They may not be appraised artistically. There is a high probability that the craftsmanship will not be taken into consideration when you sell your gold jewelry. Buyers may only focus on the actual gold value and its weight when they give you their offer.

Where to Buy Gold in Colorado Springs

There is a thorough process in identifying the authenticity of an item. It would be ideal that when investing in gold jewelry, you would buy from reliable and credible sources. (Image Source: Pixabay)

If you are looking to buy gold in Colorado Spring in which you can guarantee its authenticity, we at Lane Mitchell Jewelers can provide you the assistance that you seek. As one of the most reliable jewelry buyers in Colorado Springs, we stand in honor and credibility with the aim of providing our customers with the best quality services and products.

The jewelry-related services that we offer come in a wide variety from custom-made jewelry creation, diamond search, and jewelry repairs. For more information about us and our services, you may visit us or reach us through these contact details.