Is It Worth Investing in Gold Jewellery?

Gold has long served as a trusted store of value. In the early 1970s, gold traded at £15 per ounce ($35). By 2024, it trades at roughly £1,500–£1,600 per ounce ($1,900–$2,000) — an approximate 100× increase over 50 years.

Positives of investing in gold include its global recognition, liquidity, and historical ability to retain purchasing power over decades. Gold jewellery also offers a tangible, wearable form of wealth that can be gifted or passed down through generations.

Negatives include the potential cost of secure storage, risk of theft, and the fact that jewellery resale often falls below retail purchase price due to design and labour costs. Additionally, gold can underperform other assets like stocks during strong bull markets. Despite these considerations, long-term trends consistently favour gold as a stable store of value.

Gold jewellery is unique because it combines practical use with investment value. Unlike stocks or bonds, it is a physical asset you can enjoy while holding wealth. Compared to real estate, it requires less capital and provides immediate liquidity. Jewellery can complement other investments by offering diversification and a hedge against economic uncertainty.

For insights on silver, find out more in our blog, Is It Worth Investing in Silver Jewellery?.

Certified, High-Purity Pieces: Choose 18k–22k gold to ensure that most of the value comes from the metal rather than design alone. Lower-purity jewellery may look beautiful but contains less intrinsic value, affecting long-term investment reliability.

Long-Term Perspective: Gold jewellery is best viewed as a long-term store of wealth. Short-term market fluctuations may be significant, but historical trends over decades show steady growth. Patience is key to realising its full potential.

Understanding Market Trends: Monitoring historical trends and economic events helps contextualise the right time to buy. Inflation, geopolitical tensions, or currency fluctuations can affect short-term prices, but gold’s long-term growth potential remains strong.

So, is it worth investing in gold jewellery? Yes, gold jewellery is generally worth considering as an investment. Its value has grown approximately 100× since the 1970s, and it offers a tangible, wearable, globally recognised store of wealth. Potential drawbacks include storage, short-term price fluctuations, and resale considerations, but its long-term stability makes it an appealing option.

References:

World Gold Council, Gold Demand Trends Report 2024 

LBMA, Historical Gold Data 1970–2024

Bloomberg Intelligence, Gold Price Forecast 2025–2030

World Bank, Commodity Markets Outlook 2024