The largest consumption of gold each year is by jewelry demand. For many economies such as India this is a major method of savings. Owning gold jewelry is another form of investing in gold. Gold jewelry price is usually based on the amount of gold in the jewelry plus a premium for manufacturing, retail and design costs.

Gold jewelry is a practical use of gold besides being an investment in gold. People wear gold jewelry as a part of thier fashion efforts and as a status symbol of wealth. Owning gold jewelry which is more pure in content will help retain the value of the item, especially if it is made out of 22K gold.

From an investment point of view, gold jewelry is probably the worst in terms of a return on investment. The cost of gold jewelry is usually made up by the amount of physical gold in it plus additional costs and markups. If you went to sell your gold jewelry, you more than likely will not recover these additional costs. In fact you may not even get the cost of the pure physical gold in the jewelry. This is because of the additional costs associated to melting the gold jewelry piece and extracting the true gold content. Gold jewelry with very low content of gold like 10K is usually worth very little as a investment. Unfortuneatly, anyone buying used gold jewelry from you may not give you any sentimental value for it, unless the piece is a collectors item.

In summary, we suggest you buy gold jewelry because you like it for wearing and not as an investment.