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Five top tips for buying gold jewellery as an investment

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Gold reached a record high price last year costing £1,584 per troy, a 64% increase in the last 10 years. With the current economic climate, 33% of Brits have decided to invest their money in shares, but there are other ways to invest your money. Gold is a good place to see a steady rise in profits with it increasing in price by 17% since last January and set to carry on rising throughout this year.

“When compared to other popular long-term investments, gold has long been considered a reliable option,” explains Robert Cuomo, Managing Director at Hatton Jewellers. “There are many reasons for this, but primarily because the price of gold rarely decreases and is known to increase in times of economic hardship — unlike most other investments. Because of this, investors often include gold in their portfolios, utilising this precious metal as a hedge against inflation.”

Cuomo said the value of gold saw a surge in value during the 2008 recession and is predicting a similar trend may be on it’s way. He thinks the demand for heavy gold products is on the incline due to the steady but ever growing gold price.

In the 2008 recession the gold price increased approximately 300%. When the economic world is unstable, gold historically remains strong and in most cases rises in value. “I predict that if the country does enter a recession which is quite possible gold will rise making it a great investment long term,” he said.

Gold jewellery is a great investment as not only do you get the pleasure of owning and wearing the pieces, it’s transparent and easy to sell on. The gold price is fixed daily on the commodity market and this price is the same anywhere in the world. “The price is very easily looked up online so you are less likely to get the wool pulled over your eyes when selling,” Cuomo told us.

Five top tips for buying gold jewellery as an investment

The jewellery experts at Hatton Jewellers have revealed their FIVE top tips for investing in gold.

1. Ensure authenticity of gold jewellery

Always buy your jewellery from an authentic, reliable supplier. Less reputable brands are known to offer gold-plated jewellery whilst labelling it as authentic fine jewellery. The four precious metals – gold, silver, platinum and palladium – all require testing and hallmarking to be legally sold as genuine. To check the authenticity of your supplier, find customer reviews from genuine review websites such as Trustpilot.

Trusted online jewellers should also have an Assay Assured certificate or be listed in Assay Assured’s online jewellery retailer directory. Buying investment jewellery from a jeweller that offers returns, also ensures you receive exactly what you expected.

2. Choose a plain solid gold piece of jewellery

When you’re buying a piece of jewellery that is very detailed it means you’re also paying for labour on top of the value of the physical gold and gemstones that are used. This is also one of the main reasons why watches are more expensive than other jewellery types in terms of price per gram of gold.

If you’re looking for investment jewellery, we recommend buying a solid gold chain or bracelet, as these pieces usually require minimal craftsmanship. Gold sovereign coins are also popular as investment pieces – they do not require any craftsmanship and can be easily melted down.

3. Professional appraisal

One of the first steps for buying any investment jewellery is to calculate its worth; from here, you can determine how much you should be paying for the piece in order to make it worthwhile. Some jewellery stores offer professional appraisals upon purchase, if your jeweller does not offer this service, we always recommend getting this completed by a third-party.

4. Take out insurance

It’s recommended to keep your jewellery investment for a minimum of 15-20 years to make the most out of your gold but you never know what could happen in this length of time. Protect your assets with insurance for the correct value. Having jewellery valued on an annual basis ensures your insurance is up to date.

5. Buy jewellery you like

You should only invest in jewellery that you actually like. Part of the fun of investing in jewellery is buying fine pieces that you can enjoy wearing. If you’re shopping for something that you like, then you’ll be more patient with the shopping process, and you’re more likely to make smarter purchasing decisions.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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