What is better to buy: gold bar or jewellery?
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Emotions or long-term benefit?

Preserving and accumulating capital with the help of gold is a very ancient practice that is still popular not only in India, but throughout the world. And there are many good reasons for this. However, when it comes to choosing between buying a gold bar and jewellery, many people wonder: which is more profitable? In this article, we will analyse both options to help you make an informed decision.


Pure gold. Which option contains more of it?

The bars are known for their purity and strict standardisation. They contain 99.5% to 99.99% pure gold. This provides a direct link between the value of the bar and the market price of the precious metal.

A gold bar weighing 1 gram is much more valuable than gold jewellery of the same weight because jewellery requires the addition of other metals to gold to create alloys that improve strength, durability and facilitate further processing. Therefore, jewellery contains less gold. For example, the decorations of the very popular 585 (14K) fineness contain only 58.5% percent of gold.

What determines the price of gold bars and jewellery?

Bars are valued primarily for the gold they contain. Their value depends on the market price of the noble metal, supply and demand. This makes it easy to track the price of gold bars based on current world prices.

The price of gold jewellery includes not only the cost of the noble metal itself, but also additional expenses such as craftsmanship, design, branding and retail markup. This makes its final cost significantly higher compared to the net value of the gold contained in the item. The price of jewellery may fluctuate depending on fashion trends, unique design and brand status. This makes their value less predictable compared to gold bars.

Which one of them has higher liquidity?

The liquidity of jewellery is subject to a number of restrictions. The fact that their price also includes artistic value greatly complicates the valuation process. Finding a buyer interested in a particular brand or design can take quite a long time. Therefore, getting cash for gold in the form of jewellery can be tricky.

Bars, in turn, are characterized by high liquidity. Their purchase or sale does not require additional valuation costs, as is the case with jewellery. This means that you can sell gold in this form much faster.


Bars and jewellery: what to choose?

The choice between gold jewellery and gold bars depends on your goals and preferences. Gold jewellery certainly has attractiveness and special aesthetic value. If you want to emphasize your uniqueness, then jewellery may be the subject of your interest. However, for those who care about their Financial Security and want to preserve and accumulate their capital, gold bars are the most preferable option.

Become the owner of a gold bar


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Published: 13.03.2024
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