Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Gold jewelry the smart way: When is it about making someone happy and when is it a wise investment?
Moneymagpie Team
29th May 2025
Gold jewelry is not just a matter of taste and beauty. When chosen correctly, it can combine the joy of a special gift with value that will last for generations. At a time when we think more and more about meaningful investments and value preservation, it is worth thinking of jewelry not only as an ornament but also as a stable part of an investment portfolio.
But how to know when buying jewelry really makes sense? All that glitters is most certainly not gold so what should you not underestimate when making your choice and how to distinguish quality from the rest? In the following paragraphs, we’ll focus on how to combine beauty as well as value into one well-thought-out whole.
- A gift or an investment?
- What is the value of a piece of jewelry made up of?
- How to recognize quality and avoid disappointment
- Can you get a good deal?
- When jewelry acquires a new owner
- What are the takeaways before you opt for gold
A gift or an investment?
Luxury jewelry doesn’t just represent special moments. If chosen carefully, it can also be a way to preserve value over time. High quality gold jewelry tends to hold its value and sometimes even increases in it – especially when it comes to gemstones with a provenance or jewelry from trusted suppliers. In this respect, it can compete with other types of conservative investments.
It is not just the material but also the craftsmanship and context around it that are crucial – a piece of jewelry from a limited collection or a historical piece with a backstory can turn into an attractive asset in the auction world.
What is the value of a piece of jewelry made up of?
Image Source: KLENOTA.com
The basic starting point is usually the material. For gold jewelry this is most often 14k or 18k gold since a higher purity means a higher proportion of gold, but with it also comes a higher degree of softness which can affect the durability of the jewelry if it is worn frequently.
Gemstones are the next important factor in determining value. Natural diamonds with a high clarity, a quality cut, and provenance (e.g. a GIA certificate) are not only visually appealing but they also have long-term investment potential.
Color gemstones such as sapphires or emeralds bring an element of unique to jewelry and, thanks to how rare they are, they have increasingly become a sought-after form of alternative investment.
How to recognize quality and avoid disappointment
With jewelry, the most expensive mistake is not being well informed. A quality piece of jewelry should have a hallmark stamp (proof of purity) on it that has been authorized by the country’s hallmark office. For any gemstones, it is ideal to have a certificate of origin with all the specific features listed on it. Trusted sellers offer detailed information about what they sell as well as a post purchase guarantee for repairs and maintenance.
When making your choice, it’s good to look not only at the price, but also at the other relevant details – where the raw materials come from, how they are processed, and what the reputation of the brand is. In the luxury brand segment, a premium price is unfortunately not in and of itself a guarantee of quality.
Can you get a good deal?
Image Source: KLENOTA.com
Yes, if you know where to look. Some brands offer seasonal sales or discounts when new collections are launched. Buying direct from jewelry studios can also be an advantage since there are no middlemen and you have the option to customize pieces. Personalizing the jewelry, such as having it engraved or changing the color of the gold, is often not dramatically expensive but adds to its emotional and perceived value.
And buying jewelry online is safer than ever – transparent conditions, comparable certificates of authenticity and the ability to return the products help even the most discerning buyers.
When jewelry acquires a new owner
Gold jewelry often carries added value in the sense that it can be inherited or passed down. Family jewelry tends to have a story attached to it, but sometimes, it can also have a surprising market value. Historic pieces with period designs made from quality materials might appeal not just to collectors but also to investors.
It pays to have such jewelry professionally appraised. In some cases, it may be appropriate to have it restored (or modified) sensitively of course, taking into account its provenance and future use.
What are the takeaways before you opt for gold
Image Source: KLENOTA.com
When quality, a trusted provenance and long-term potential come together in the selection process, you can make a decision that will create value over time.
Whether it’s a gift, a family heirloom or a first “silent” investment, a well-chosen piece of jewelry can offer you more than meets the eye. And that’s even at a time when the luster of some other assets is fading fast.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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