Worthy Little Investment Tips: Gold Jewelries MUST-KNOW

Aside from being one of my favorite colors, Gold has been very appealing to me because of its value.  We invest on a lot of things that depreciate over time like gadgets - mobile phones, appliances trying to keep-up with the trend but as years gone by we will soon find out that those things do not have a value anymore all we have gained is satisfaction in using them, no long-term benefit at all.  It is time we pay some attention to Gold - in its famous form, jewelries.  Gold yearly appreciate in value unlike any other things we desire to buy.

Photo Source: OLX.ph

I remember buying my daughter a bracelet that just cost around two thousand four hundred pesos after maybe two years its value had almost doubled and then valued at three thousand nine hundred.  Same is true with the other jewelries I bought. A friend also told me that a bracelet she gave her husband on his birthday years ago that is valued at around two thousand then has jacked-up its value to ten thousand pesos after years - just pawned (pawning is usually half the market value depending on the appraiser, there are shops that appraises at 1/3 of the MV).

Gold is easy-money when you ran out of cash and on emergencies and the ATMs are off-line especially during Holidays that ATMs became quite hard to access. No requests, no shameful begging and the like; just bring to the pawnshop - it is right away liquidated to cash.

Here are some facts I learned from a jeweler friend in Cavite (Mrs. Yeye Zarco, the credit should be hers). Gold in colors:


Yellow Gold
-The best is Saudi Gold
  Saudi Golds are light-yellow in color
-Pawning value is good.

White Gold/Tri-color Gold
-The best is from Italy
-It is a little more expensive than yellow gold.  
-Pawning value is 10-20% lower than that of yellow-gold's value.

Two Types of Gold

Commercial Gold 
-20 karat 22 karat
-can not be pawned

Standard Gold
-14 karat 18 karat 21 karat 24 karat
(The higher the "karat" the pliable it is, soft to bend, easily deformed but more value)
- can be pawned

The value of gold depends on its weight and sometimes in design and brand. Gold is valued per gram multiplied to the market value (the current price it is sold in the market).  

How will you know the market value in your country? 

-Go to pawnshops with auctioned jewelries.  
-Look at the items in pure gold and no diamonds or other stones. 
-Divide the price over its weight in grams, the quotient is the price per gram. 
 That is the market value.  
-Use that quotient you find to check the price of other sellers you are interested buying from and multiply the weight to it. 

 Do not forget to get separate price and weight for each "karat" level. 

Here is a sample computation in Philippine peso.  

      e.g.
      Auctioned Jewelry costs 
     - P 9000 and it is 3g 18k
     - P 9000/3g = P 3,000 per gram
     
     Other sellers sell: 
     - 1.5g 18k for  4,500  (P 3000 x 1.5)
     - fair enough

    If another seller is selling 
    -2.4 g for P 8,000
    -That is expensive, not okay to buy.
     (if 18 k and valued at P 3000/g x 2.4 = P 7,200 only)

(The market value is just a sample not the real cost today for easier explanation.)

The  auctioned jewelries in pawnshops usually sell the lowest price in town.  But here in the Philippines, you can find the cheapest gold in Binondo and Ongpin - amazingly half-the-price anywhere else in the country (BUT better be careful, because there are some who sell fake ones. Better buy from big shops with receipt and contact number and be sure to transact with the legitimate employees). 

The beauty and uniqueness of the design count and add-up to its  price too.  The signature brands like Cartier (serving royalty), BVULGARI, Tiffany & Co., Harry Winston and more sell the highest prices. Here, Karat World is famous.  They are bought expensive and sell expensive to people too but in pawnshops they are valued just the same.

Tri-color gold looks very expensive. Yellow gold looks like "heaven" for the snatchers - they can easily recognize it.  The reason why I always prefer white gold for my daughters is that - very seldom bad elements knew if it is white gold or just the fancy silver jewelries that costs a lot less but not so much useful just for accessories purposes only that is why they did not find it interesting.

All I can advise if in case you need to pawn your gold, be sure not to let it be forfeited especially if it is newly-bought there is no way you will be paid back on the amount you had for it, that is simply not a good way to treat your gold. Let it rest a little longer to grow its value.

When buying gold for investment, do not buy with diamonds/stones.  They do not matter when selling/pawning just added to weight that is not valued at all.  We are talking about investment not for accessories.  The look does not matter that much.

Another important reminder, I learned if from a Jewelry Shop owner who had attended seminars in abroad to know more about Gold.  Be careful in buying thick or protruding rings or filled-charms in bracelets or pendants.  There might be a "sandwiched" foreign material other than gold inside to make it weigh heavier.  

I hope I had shared with you some vital information that you can learn from and somehow apply to your little "investment schemes".  Comments are appreciated/welcome. Do not think twice to share additional points/knowledge about this article,me and the readers may not know yet.  Two heads are better than one..have a great day everyone...

Here is a useful link: WikihowTellingRealGold

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Family, Daily Living & Style by Angelita Galiza-Madera is licensed under a Creative Commons Attribution 4.0 International License.