Buying and Selling Gold Jewelry v. Bullion

Gold is a great investment for your future as it tends to not only maintain its value but to increase it. Cash and other commodities may lose all value in a financial crisis, but gold tends to keep being valuable.

Fortunately, if you want to invest in gold, you have many options. Gold bullion comes in many different forms, and they are all just as valuable as the other. The price of gold is determined by its weight and its purity, not its form. You can buy gold jewelry or gold bars – both will net you the same profits if they are the same purity and weight.

Some people like buying and selling gold jewelry for their gold speculation. Here’s what you need to know about how gold jewelry compares to other types of gold bullion:

Quality of the Gold

When you buy gold bullion like coins and bars, you can be sure of the quality of the gold. These types of bullion are produced by reputable refineries and government mints, and they are 99.99 percent pure gold in most cases.

In contrast, when you buy gold jewelry, you can’t always be sure of the quality of the gold. Some jewelry is solid gold, but some jewelry is just gold-plated. Other jewelry is a blend of metals. If you buy the jewelry from a well-known and high-end jeweler, you can get information about the karat of the gold and where it was produced, which can help you verify the purity. However, if you buy the jewelry second-hand from a pawn shop or an individual, it will not be as easy to verify the purity of the gold.

Pricing

Gold prices fluctuate rapidly according to market conditions. The price could change drastically in just 10 minutes. You could buy gold in the morning and sell it for a fortune in the afternoon (though this is not common). When you buy gold, you get a spot price. That price is locked in once you place your order or start processing your payment.

When you buy jewelry, the price is based on many other factors, such as whether any stones are used in the piece, the karat of the gold, and the design of the jewelry. The cost of jewelry can even be influenced by the designer or the age since jewelry can be collectible.

Gold bars have no sentimental value or increased demand due to fashion. The price is relatively more stable as a result, dependent only on the market.

Liability

Jewelry can be a major liability. You wear it and people see that you have something valuable for the taking. You are much more likely to be a target for thieves. Even if you do not wear the jewelry – or do not wear it often – theft is still a major concern. If someone breaks into the place where the jewelry is kept, jewelry is going to be a much more attractive target than gold bars or coins. People know they can sell gold jewelry many places – not as many people know how to unload a gold bar (or can do it without raising a lot of questions).

Buying gold jewelry in Glendale as an investment strategy is a much riskier proposition. You just don’t know what you’re getting all the time, and you will own an asset that is much more vulnerable to theft. If you want to invest in gold, it is much better if you buy gold bullion like bars or coins. Prices will be more stable, and you’ll be able to verify the purity and the origin of the gold.

At Arrowhead Coin and Jewelry in Glendale, Arizona, you can buy gold jewelry and gold coins. We verify the purity of our gold jewelry so you know that what you buy is worth the price. We are the go-to source for buying and selling gold in Glendale, Arizona. We also buy and sell gold coins of many different kinds, as well as other rare and collectible coins. Whether you are interested in building your gold portfolio or you are looking for gorgeous jewelry or collectible coins, we can help you. Call us to check on prices or visit us in Glendale.

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