Title of this article says fashion jewelry, but the same thing is true for every other type of jewelry as well. Buying jewelry and thinking of it as an investment in precious metals is not a good idea at all. The markups that exist on regular jewelry, and not to mention fashion jewelry, are just incredible and if you had invested and bought jewelry of some sorts with the intent of picking up huge amounts of money off of it, you’re in for a surprise, because you will have to wait for one of the more horrific predictions for the precise of gold and other precious metals to come true.
If you had purchased a gold ring, 14K for example, paid for it 400$ and thought of it as an investment in precious metals, you’re in for a long wait before you’ll be able to have a return on that investment. On average rings are only a few grams heavy, specially if its womens ring. And since this is 14K ring, only half of it is actually gold, so let’s say that you are only dealing with 3 grams of gold in total. When you take the current price of gold, you’ve over paid your gold ring for over half of what the spot price of gold was per gram, over 70$ per gram high will the price of gold have to be if you would have expect any kind of return on your investment.
Now you could take into account that the time that the jewelry was worn into the account, as part of the cost equation, and then you might be in a better position, but without that, there’s just not profit from investing in gold content of jewelry, or any precious metal for that matter. You’d only make a profit when the price goes over 3500$ dollars per troy ounce, which will happen who knows when.