Gold Jewelry Keeps its Value

Most people who purchase gold jewelry are concerned with the look of it and the joy it will bring to the person wearing it. But gold jewelry also provides a great benefit to the owner because it is a portable storage of wealth. In many countries, in fact, gold jewelry is still used to provide secure, transportable wealth in case of an emergency.

The price of gold jewelry is based on the cost of the gold used, the jeweler who created it, and the rarity of the piece created. The measure of how much gold is used in a piece of jewelry is known as a carat:

• 24 carat gold jewelry = 99.99% gold
• 18 carat gold jewelry = 75% gold
• 14 carat gold jewelry = 58.3% gold
• 12 carat gold jewelry = 50% gold

As is evident from the above list, higher carat gold contains less other metal, which is used to fortify it. Many pieces of gold jewelry cannot be made out of 24-carat gold due to its soft, more fragile nature. For example, rings, bracelets, and other types of jewelry that are likely to make contact with hard surfaces while worn are typically made from lower carat gold due to its durability. For this reason, 24-carat gold is usually used to make necklaces.

When investing in gold jewelry, it is also important to consider the jeweler who made the piece. When an investor purchases gold jewelry from a jeweler with a good national or international reputation, they are partly paying for that reputation and the resale value of the jeweler's pieces. Well-known local jewelers also build their reputations in the same way as national brands.

By finding a local jeweler with a good reputation for quality work, the investor can receive a lower price for the same quality of work. Many local jewelers also have existing gold jewelry for sale. Local jewelers often carry a variety of mass produced brands as well as pieces they have created, giving the consumer many options in one place when choosing a piece of gold jewelry. Collectors often seek older pieces. Heirloom gold jewelry and antique rings and other pieces often are valued much higher than just the weight of the gold that was used.