What You Should Know Before Investing
In Gold Jewellery?

Building wealth comes down to a very basic principle – to build upon your collection of assets. Gold is an invaluable asset that has generated an average of 10.6% returns between 1971 and 2019, so it should not be overlooked by any investor. There are many different types of gold investments in Malaysia, but the most popular among them is buying physical gold, such as acquiring gold jewellery.

Pros and Cons of Investing in Gold Jewellery

No.	Pros	Cons
1	Lower investment risk	Lack of steady income
2	Strong hedge against inflation	Difficult to sell
3	Portfolio diversification	Required storage protection
4	Low long-term volatility	High short-term volatility

What to Look Out for When Buying Gold Jewellery

1. Authenticity

Ensure you are always buying from reputable and trustworthy jewellery suppliers. Some sellers will try to make a quick buck by selling you “gold-plated” jewellery as the real deal, so make sure to always do your homework and check for reviews of sellers.

2. Gold Purity

Always check the purity of gold (you know … those 9k, 12k, 24k wording you see in stores). They help you understand how much gold you’re getting. As the maximum is 24 karats, simply divide the number by 24 to get the ratio of gold to other metals. The purer the gold, the higher the value.

3. Labour Complexity

Generally, if you are buying jewellery as an investment, looking for ones which are simple is a better choice as you are paying less labour cost in crafting.

4. Price

Keep in mind the market rate of gold as this will play a factor in how much money you need to fork out. Buying at a reasonable price gives your investment more room to appreciate in value.

5. New Diamonds

New diamond loses 50% of its value the moment it leaves the jewellery store; this will plummet your jewellery price and make it a horrible investment option, so do exercise caution when buying diamond pieces.

6. Your Design Taste

At the end of the day, it is also a piece of jewellery that you will wear, so do make sure you buy a piece that you would absolutely love to have on you.

What Types of Jewellery Should I Consider Investing In?

1. Gold Hoops and Stud Earrings

Considering that earrings are one of the most popular forms of jewellery to date, especially with women from all walks of life. Investing in a gold hoop or stud earring gives you more inconspicuous jewellery to wear for day-to-day life while also improving your social status.

2. Gold Bangles

Gold bangles in Malaysia play an important part in Indian culture and signify a woman’s beauty while also helping to enhance her identity. They symbolize luck, health, and prosperity in the culture and are popular to young and old alike. Gold bangles also come in a variety of designs and colours, so the possibility of matching with different styles is endless.

3. Gold Cuban Link Chains

Gold cuban link chains are a specific design of chains formed from interlocking circular gold rings. They offer a sleek, chic, and unison appearance and hold up their appeal all over the world and to both sexes. Due to their huge market and demand, they make for one of the best gold jewellery investments.

Is Gold Jewellery a Good Investment for You?

Gold has and will always remain a long-term investment, so to those who are looking at making quick returns, this is not the investment option you should be looking for. However, the key to building wealth is through consistent investment in long-term assets as famous investor Warren Buffet puts it: “Always invest for the long term.”

In this regard, gold jewellery is a great addition to your investment portfolio and acts as a strong hedge against inflation, helping to smooth out the growth of your wealth. With consistent returns, it is a staple amongst savvy investors; and as jewellery, you’ll be able to wear it around with you. Talk about two birds with one stone!

Summary

As an investor with a focus on building long-term wealth, gold should be one of your top considerations. Whether you are looking for gold cuban link chains, gold hoops and stud earrings, or gold bangles in Malaysia, Jin Huo Gold & Jewellery strives to provide high-quality gold jewellery at competitive market prices.

What You Should Know Before Investing In Gold Jewellery?