Gold or silver jewellery can provide a tangible and aesthetically pleasing way to hold precious metals, but it is not always a high-return financial investment. While gold and silver historically maintain value and can act as a hedge during economic downturns, jewellery carries design and craftsmanship mark-ups that often limit resale gains. Jewellery is best viewed as a long-term, wearable store of value rather than a speculative tool for short-term wealth growth.

Market volatility is a normal feature of financial markets, though current indicators suggest elevated risk. For example, the U.S. stock market’s Buffett Indicator — which compares total market capitalisation to GDP — sits at 220.4% as of October 2025, signalling overvaluation. Historically, the S&P 500 has averaged around 10% annualised returns, yet sharp declines have occurred, such as during the dot-com bubble (2000–2002) and the 2008 financial crisis, when losses exceeded 40%.

These conditions often prompt investors to explore alternative assets, including precious metals, for diversification and hedging purposes.

Gold and silver have both demonstrated resilience in uncertain times:

Gold: From approximately £15 per ounce ($35) in the early 1970s to £1,500–£1,600 ($1,900–$2,000) in 2024, a roughly 100× increase. Historically, gold tends to perform well during downturns and acts as a hedge against inflation.

Silver: From around £1 per ounce ($1.50) in the early 1970s to £18–£22 ($22–$28) in 2024, about 20× growth. Silver benefits from both industrial demand — electronics, renewable energy, healthcare — and its role as a precious metal, although it is more volatile than gold.

While precious metals often outperform equities during crises, jewellery adds complexity: design premiums and craftsmanship costs may limit how much of this growth translates into resale value.

Asset 1970 Price 2024 Price Approx. Growth Notes

Gold £15 ($35) £1,550 ($1,950) ~100× Strong hedge during crises

Silver £1 ($1.50) £20 ($25) ~20× Industrial demand supports growth

S&P 500 ~£60 ($90) ~£4,500 ($5,700) ~75× High long-term returns with short-term volatility

Precious metals provide stability during downturns.

Silver’s industrial use may support future demand and moderate growth.

Stocks offer potentially higher returns, but with greater short-term risk.

Jewellery is distinct from bullion: it combines aesthetic and functional value with metal content, but resale rarely matches retail cost.

1. Certified, High-Purity Pieces

Focus on 18k–22k gold or sterling silver (92.5% purity) with certification. Certification ensures most of the value comes from the metal itself and simplifies resale.

2. Long-Term Perspective

Jewellery is best viewed as a long-term holding. Short-term price fluctuations occur, but precious metals historically preserve value over decades.

3. Liquidity and Practicality

High-quality jewellery is tangible, wearable, and reasonably liquid — features that can be advantageous during market uncertainty compared with other assets.

Volatility: Silver is more volatile than gold due to its dual role as a commodity and precious metal.

Resale limitations: Retail jewellery premiums and craftsmanship costs reduce potential gains on resale.

Market timing: Precious metals may lag equities in bull markets. Jewellery does not fully track metal performance because of mark-ups and design considerations.

In essence, jewellery provides some protection against market volatility but is not a guaranteed or high-yield investment.

Prioritise timeless designs to retain appeal over decades.

Choose recycled or ethically sourced metals to align with sustainable values and support responsible craftsmanship.

Avoid overpaying for heavily branded or trend-driven pieces if resale potential is a concern.

Treat jewellery as a wearable, tangible complement to a diversified portfolio rather than a primary hedge.

In balance, gold or silver jewellery can serve as a protective, tangible asset during periods of market volatility, but it should not be viewed as a high-return investment. Jewellery carries design premiums and mark-ups that often reduce resale gains, even when metal prices rise.

If your goal is to diversify wealth with physical assets, enjoy craftsmanship, and hold something lasting and tangible, selecting certified, high-purity jewellery can provide meaningful long-term value. For pure investment exposure to gold or silver prices, bullion, coins, or ETFs are usually more efficient. Jewellery offers a blend of practicality, aesthetics, and metal value — a unique form of preservation, not speculation.

References:

World Gold Council, Gold Demand Trends Report 2024

Silver Institute, World Silver Survey 2023

LBMA, Historical Gold and Silver Data 1970–2024

Financial Times, Market Valuation Trends and Investor Behaviour (2024)