In this blog post we will not only cover buying gold in the form of jewelry as an investment but also as bullion for investment since we get so many calls about it.
Gold Jewelry as Investment
The days of buying a heavy gold chain or bracelet have long disappeared, and in the last 15 years the U.S. consumer has been fixated on the fanciest look for the cheapest price. As a result, stores are stocking more and more promotional quality jewelry that is lightweight and not made to last.
Prior to the 1960’s, gold jewelry was no more affordable, despite it being much cheaper than it is now in 2012. In the 30’s through the 60’s there was very little discretionary income, yet you might have inherited large, heavy gold items since people didn’t mind buying gold because it was a luxury itemyou could fall back on in hard times. Not like a $20,000 motorcycle, an $8,000 breast implant or a $200 pair of plastic sunglasses. Think about it, if you want to buy a large amount of gold only jewelry (like $20,000 or more) it would be a very smart investment considering the outlook for the economy in the next ten years.
Why, you ask, would a person pay retail for a heavy gold item and still consider it an investment?
Normally they wouldn’t, but if you get it at the right price, consider it a luxury investment. At my store, you can simply tell me that you want to purchase gold in the form of jewelry for investment for $20,000 or more, or diamonds as an investment for $50,000 or more, and just so I understand that you’re not just trying to buy a common jewelry item for less, I’ll give you a price slightly over my cost. Then you will have an incredible piece of jewelry/investment 100% liquid at a moments notice in any where in the U.S. or world, plus exposure to gold or diamonds as an investment to offset inflation or trade for a vehicle etc, in an economic crash.
Gold Bullion as Investment
The math is simple, gold is going to be one of the few investment friends you will have in the near future. Things are about to change for the U.S. dollar in a very bad way. If you’re considering buying bullion rather than jewelry compare prices between brokers but only deal with very old, well established brokers like KITCO, or a refinery, etc. I won’t go into details here, but there are many reasons to be careful including faked coins and bars.
Once you’ve found a few reliable dealers, find out which one has the lowest mark-up over the current spot price.
Do Not Buy Gold On Paper
Do not buy gold ETF’s, stocks, or gold on paper traded in U.S. currency. The currency is going to be the problem – it will be devalued, and eventually forcefully (very different than, monetary easing or passive inflations effects) without question and the dollars you purchased the gold on paper with will be readjusted and you will own less gold, too. In fact, if you study the last time gold was confiscated in the U.S., all gold was illegal to own or trade in more than approximately three ounces, unless it was in the form of jewelry, or collectable old coins. (hmmm…interesting).
Many are saying there’s no way out of an economic collapse, but things will still have value. The very rich use diamonds, land and gold to preserve their wealth, so it won’t be like life after a nuclear blast where nothing has value unless you can eat or shoot it. But still, seven of the major economies are in big trouble with their currency and debt (yes, even China), and the value of monies will eventually have to collapse and be revalued. Printing money with nothing to back it up is cheating. And just like a game of Monopoly, when someone is caught cheating the others protest and you’re either kicked out of the game, or you redistribute the money and start over.
Nothing replaces doing your own homework, so enjoy the journey of discovering the best way to protect yourself for the future.