Decorations and safes…your guide to buying gold jewellery mirror

With every new wave of inflation, global or regional political events and fluctuation in currency prices, gold returns to the forefront as a safe haven that can protect your savings. This makes sense, as gold has always been able to maintain its value in times of political and economic uncertainty.

But the decision to buy gold – especially with the aim of preserving the material value – is not a spontaneous decision, so we present to you below a guide to buying gold jewelry.

Gold karats and the difference between them

Before entering a jeweler’s shop, you need to understand the different carats and the uses of each. The karat indicates the percentage of pure gold in the piece versus other metals that are added to give it hardness.

• 24 karat It is 99.9% pure gold, characterized by its bright yellow color, but because it is less hard, it is used more in bullion, and it is the first choice for long-term savings because it retains its full value when sold.
• 21 caliber (87.5% gold) It is balanced between durability and a rich, reddish color, which makes it more suitable for jewelry and a balanced option due to the lower workmanship of the pieces (which means the additional cost, which includes the wages of workers and designers and operating expenses) compared to 18-carat jewelry.
• 18 karat (75% gold) is stronger, harder, and lighter in color, and is best suited for delicate designs or pieces that you wear daily, such as bracelets and chains. But it is considered the least useful in terms of pure savings due to the high cost of its formation.

Manufacturership and price per gram

The price of a gold piece is calculated using a simple calculation. First, you have to know the price of a gram, which is the price of gold without manufacturing. Then what is known as workmanship is added, which varies greatly depending on the accuracy and details of the purchased piece, as well as the brand of the piece. Finally, the tax or stamp value is added.

It is always recommended to negotiate the price of workmanship, especially if the weight of the piece is large or the design is simple. Workmanship is usually greater in the case of well-known brands and complex handmade designs, but in bullion and coins it is at a minimum.

On the other hand, it is preferable to avoid pieces that contain lobes or stones. The more stones and stones in the jewelry, the greater the workmanship and the lower the recovery value upon sale, as the jeweler deducts the weight of the stones upon resale, except in the case of some reliable companies that allow pieces to be resold without deducting the weight of the stones.

The effect of the timing of purchase on the price of gold

The price of gold globally is affected by the price of the dollar as well as political events, and is linked to an inverse relationship with the dollar and interest rates. The lower the interest, the higher the price of gold.

But at the local level, markets are also affected by supply and demand, and it is known, for example, that the prices of gold jewelry rise locally in many local markets during holiday times, wedding seasons, and at the end of the year. Experts advise avoiding these times and buying during calm times while monitoring gold prices.

Important tips when purchasing

• Ask the weight of the piece in front of you on the scale and watch the number it shows.
• Make sure there is an official stamp or seal on the piece.
• Make sure to buy from reliable sources or stores with a good reputation.
• Make sure to take an official, certified, and stamped invoice from the store, indicating the caliber, total weight, price per gram on the day of purchase, workmanship value, and description of the piece.

Is gold for decoration or investment?

One of the most common mistakes is buying luxury jewelry for the purpose of investment, and its value decreases upon resale due to the manufacturing discount. If the primary goal of the purchase is to save, it is better to buy 24-karat bullion, or gold coins.

If your goal is decoration only, choose what you prefer, considering that workmanship is a cost in exchange for luxury that you will not be able to recover. However, if you want a balanced solution, you can choose 21-karat pieces with classic designs, few details and low workmanship.

Additional tips

• Make sure to keep the invoice to ensure you obtain your rights upon resale.
• Although gold does not rust over time, it may be exposed to scratches. To avoid friction, be sure to keep each piece in a cloth or velvet bag.
• Avoid selling gold before at least 3 to 5 years have passed in order to overcome the manufacturing gap and benefit from the rise in prices in global markets.
• Gold is a loyal friend, but it requires caution when buying it and dealing intelligently. It is, as our ancestors said, “an adornment and a treasury.”