Why Gold Coins & Bullion Are Better Investments Than Gold Jewelry
At around 600 BC, the Lydians in present-day Turkey were the first people to use coins as currency. Since then, gold coins and bullion have been adopted as acceptable forms of money by countries around the world. Gold jewelry is often viewed as a symbol of vanity, but it can also hold significant value based on its precious metal content. As someone who invests in gold, you may be deciding between buying gold jewelry and gold bullion.
We’ll examine why gold coins and bullion typically offer more benefits to investors than jewelry.
Investors have trusted gold coins as a reliable store of value for decades. Along with their numismatic value, the worth of gold coins rises with the spot price of gold. For pieces of jewelry, objective factors, like how stylish they are, have a significant impact on their initial price. Plus, you usually pay a 25-50% markup when you buy gold jewelry at a store.
As trends evolve and different styles become more or less fashionable, it can be difficult to resell gold jewelry for a higher price than you paid for it.
Though you can safely store both jewelry and coins, most people tend to wear their gold jewelry because it’s a status symbol. This increases the chances of damaging the jewelry, losing it, or having it stolen. After organizing their collections, most people who invest in coins keep their valuable items locked away in home safes or safe deposit boxes.
Unless you tell people, they probably won’t know about your gold coin collection, meaning it’s unlikely that anyone would think to steal it.
Another factor to consider is the purity of gold coins versus gold jewelry. Gold coins are a known commodity. In other words, a quick online search will allow anyone to verify the purity and weight of the coin. Jewelry, on the other hand, is more difficult to verify. While most gold jewelry sold in the United States is stamped with the karat or purity, this isn’t necessarily the case in the rest of the world.
Furthermore, unless you have an expert eye, it may be difficult to confirm the purity of gold jewelry without destructive testing. Lastly, gold jewelry also requires a reliable scale to properly determine the weight and gold value of the piece.
When you sell your gold coins and bullion, you can easily find a trustworthy coin dealer who will offer a fair price for your items. Additionally, you can always have a gold coin graded by a third-party service. This will help you estimate a price range for selling your gold coins, which gives you leverage when negotiating with a coin dealer. There’s no established standard for valuing gold jewelry, so you won’t know if you’re getting a good deal if you try to sell it.
At Atlanta Gold & Coin Buyers, our staff can help you decide which investment strategies make sense for your goals. Whether you decide to buy or sell gold coins, our team will offer you honest, transparent advice. We’re the only coin and bullion dealer in Atlanta that posts our buying rates online, meaning you’ll know what to expect before you stop by. To schedule an appointment at one of our two locations, fill out an online form today.