In everywhere, jewelry was often seen as the best method of saving, this perception being reinforced by their presence in numerous wealth declarations of some public figures. When did this trend appear? During the communist period, when people did not have access to official offers of precious metal ingots, and buying gold jewelry was the saving option they were allowed. Moreover, the communist regime also had a campaign to confiscate and redirect to the National Bank the gold held by individuals.
What you need to know about the price of jewelry
First of all, if you want to look at jewelry as financial investment tools, you must know that the profit is obtained only if you will buy the respective jewelry at a price much lower than its value. Additionally, to properly value jewelry, you need to convert the alloy weight to the gold weight. This is because pure gold is very soft and different gold alloys are used instead. For example, 24-karat gold contains 100% gold, 18-karat gold contains 75% gold and 14-karat gold – 58.5% gold.
Returning to the price of a piece of jewelry, it is established starting from the price of the precious metal and that of the precious or semi-precious stones in its structure, to which is added the labor of making the jewelry.
And when you sell, you will definitely run into 2 big problems:
- you will lose between 10 and 20% of the purchase value because the buyer will most likely only pay the price of the gold and the precious stones in the jewelry structure
- you will lose between 20 and 30% of the purchase value because the buyer will most likely pay a price lower than the spot price of the precious metal at the time of the transaction.
Therefore, experts in the field say that a gold or silver product can be considered an investment only when its purchase or sale price is as close as possible to the spot price of the pure amount of precious metal contained in it.
Jewelry vs. gold coins or bars
Jewels are not liquid assets, they are usually more expensive, calculated per gram of pure gold, than an investment in standard gold products. At the same time, the sale price is much different from the purchase price and VAT is also applied. In contrast, when we talk about physical gold the difference between the purchase price and the selling price is below 5% and VAT is not even applied. Another advantage of gold coins or bars is that they are internationally recognized and professional dealers have transparent prices. Conversely, with jewelry, as mentioned above, the sales process can be cumbersome and less transparent.
Buy back jewelry
On the other hand, if you already have such jewelry in your possession and want to capitalize on it, you can sell it by taking advantage of our buy back services, at prices 5% lower than the spot price of gold. This in the conditions where, on the niche market, old jewelry is bought at prices at least 10% lower than the spot price. Also, if you have a larger quantity of jewelry, our dealers can negotiate a better price. Once bought, these jewels will not be resold, but are melted down and the resulting gold is exported to international refineries.