When it comes to investing, there are countless options to choose from. Stocks, real estate, and mutual funds are just a few of the popular choices that investors tend to focus on. However, there is one option that often gets overlooked — gold jewelry.
For decades, gold has been seen as a stable and valuable investment. It’s not affected by inflation or political instability, and its value increases reliably over time. It’s also a more accessible starting point for consumers versus high-value investments like real estate. If you’re interested in investing in gold and ensuring you get the best value for your gold jewelry, here is an essential guide to buying and selling gold jewelry for cash.
What to Consider When Investing in Gold Jewelry
Investing in gold jewelry can be a lucrative opportunity, but it isn’t without its risks. There are several key factors to consider before investing in a piece of gold jewelry, including the brand name and purity of the gold.
Firstly, you’ll want to consider whether your gold jewelry is a designer name brand. Gold jewelry purchased from legacy jewelers like Tiffany & Co., Van Cleef & Arpels, and Cartier are more likely to hold their value over time. When purchasing gold jewelry secondhand, make sure to check the markings on the item and verify its authenticity. Investing in authentic designer gold jewelry can sometimes give you a higher return than gold bars or non-name brand jewelry due to the brand value.
Another crucial factor you’ll want to consider is the piece’s gold content. The higher the karat of the gold, the higher the value of the piece. 24-karat gold is the purest and most expensive gold used in jewelry, although it’s rare to find because of pure gold’s malleability. As the number decreases, so does the value of the jewelry. 10-karat gold is typically the lowest gold value used for jewelry. Even if a jewelry item is large or looks flashy, if it has little gold content, it’s going to have a lower value than a tiny item with higher metal purity. Additionally, the presence of precious gems can help further increase the long-term value of your items, especially timeless stones like diamonds.
Advantages of Investing in Gold Jewelry
When debating between investing in gold jewelry versus other assets, there are many factors to consider. There are pros and cons to each route, so carefully consider the unique advantages and disadvantages before investing in gold jewelry from gold and jewelry buyers.
One major advantage of buying gold jewelry is that it serves a functional purpose. Gold jewelry is a physical asset that you can see and touch, unlike stocks or mutual funds, which provides a sense of security, as you know exactly where your investment is. It can also be used on a day-to-day basis, serving a purpose as it earns you money. Many physical assets like gold bars may be tangible, but they aren’t always functional.
Another benefit of investing in gold jewelry is its accessibility. Gold bars and coins can be difficult to track down, while real estate and high-return stocks can be too expensive for some. Gold jewelry can be purchased at almost any price point and from any reputable jeweler. There is also the potential to make a much larger profit if you source gold jewelry that is undervalued, such as at an estate sale or pawn shop.
Disadvantages of Investing in Gold Jewelry
Although there are many benefits to purchasing gold jewelry, some may opt for other investments due to two distinct disadvantages. Firstly, gold jewelry is not made with pure gold like gold bars and coins are. Since 24-karat gold is too soft and malleable for jewelry, most fine jewelry will be made with 18-karat gold at most.
Another disadvantage — although one that can be avoided — is that your gold jewelry may be appraised for its raw material value rather than for its full artistic and commercial value. This means that the craftsmanship, legacy, and name brand will not be taken into consideration when you sell gold jewelry. Instead, you will be offered a portion of the gold’s value based on its weight and purity alone.
Because of this, it’s important to find reputable places to sell gold jewelry near you that will fairly assess your jewelry’s true value on the secondhand market. For example, Orange County residents choose Watch & Wares because we believe in the holistic value of your gold jewelry. We don’t just offer you the value of the raw metals or precious stones like other stores; we love buying and restoring beautiful gold jewelry so that we can find it a new home and continue its story for generations to come.
If you’re looking for places to sell gold jewelry, the friendly team at Watch & Wares is here to help. We offer convenient and transparent appraisals that never come with any obligation to sell. Our offers are consistently some of the highest in Orange County, thanks to our team of experienced jewelry experts and certified gemologists. If you are looking for the best place to sell jewelry for cash, contact Watch & Wares online or give us a call at 714-633-2030 today.