anybody know anything about buying gold jewelry as an investment instead of coins? this way i can kill 2 birds with 1 stone, ie, buy gift for gf and also buy something that has intrinsic value....does anyone know what kind of turnaround transaction costs i will deal with here? i mean if it costs more than 10-15% on the buy and sell side combined, i am better off sticking to coins
And start shopping pawn shops, coin stores, where ever. Free Ad Papers ubiquitously spread hither and yon. You'll figure it out. Learn the difference between pennyweight, ounces, and grams.
We got lots of good stuff several years ago at just over melt when gold was 650 to 900. Same with Sterling when it was in the teens.
I just found a brand new (worn 2 times allegedly) 14K rope chain necklace on craigslist. I paid 150 for it, it melts currently for $250. Total weight is 8.5 grams. Its really nice! So yes, there are good deals out there, and the wife is very happy :) If I buy any jewelry it MUST be stamped its purity somewhere or I won't buy it. If you buy new, you will always pay 2-3x what its worth in gold value. With people running out of money, they will try to sell their stuff first before they go to cash for gold because they know those places won't offer as much as a private party.
To calculate value, take total weight of the piece x purity.
8.5 x .585 = approx 5 grams pure gold
Then figure out the gold per gram price.
gold at 1600 / 31 (grams in t-oz) = $51.6 / gram
Times the 2 together.
$51.6 x 5 g = $258
Of course you can find a weight calculator and it will do it for you.
If you are trying to keep it simple coins are your best bet. If you go to a jewelry store it can cost you twice as much as the gold content. You can find some items that are used for close to spot or even below spot but you have to calculate what you are buying. 24k is 100% so 14k is .5833 pure and so on. Just remember to
weight / purity = total gold content.
Personally I do buy some gold in jewelry form but only 10k plain rings and only because I have a friend that buys gold so he will sell it to me for 98% of spot. Just as a worst case barter item so i only have 17 rings.
Most good places will only offer you 90-93% if you are lucky.
We buy gold places 30-50%
Maybe not directly related to your question, but an interesting fact: FerFAL has said that, in the Argentina situation, gold jewelry (especially chains and other jewelry with links) is useful since one can sell/exchange a small amount of gold by separating the links. So having a few chains and necklaces around might not be a bad idea.
I buy some gold chains. I stick to 22k gold. There are stores that cater to the Asian market where it is priced by the gram, e.g. goldpalace.com. I view it as an important diversification: It is wearable, easy to transport, not as noticeable as coins when traveling (wear it under clothing, obviously), and divisible into links in a pinch with simple hand tools. 22k gold is soft enough that it is comfortable to wear 24/7.
They really do have a place in this "new world" we are experiencing. I remember a couple of years ago, on KWN, there was a discussion of how big money was moving into diamonds (in addition to gold). The whole jewelry idea makes so much sense in this environment. Great way to transport wealth without the hassles or fears associated with currency declarations when crossing borders. Of course the Middle Eastern and Asian folks have known this forever, but us Westerners for the most part don't.
Basically, I have my IRA entirely in gold because if it goes up I keep my wealth and if it goes down I keep my wealth. I honestly would prefer gold to drop to $50/oz so I could pull my IRA with almost no tax/penalties.
I started investing in my IRA after an stint running a pawn shop. I took only gold and platinum and palladium jewelry (scrap too) I loaned $1.00/g and figured that no one would let it go for that ridiculous price. So when no one ever came back to pick their stuff up, I just draped myself in gold - coins in bezels, men's and women's jewelry, you name it. The scrap I had my jeweler melt and refine to 18K or 22K and set with precious stones.
If you want to buy gold on the cheap, set yourself up as a pawn shop - that has been my experience. Now that I am on welfare and Medicaid I can't do this anymore but yesterday a guy at the post office called out and asked if I still bought gold and I told him I bought 14K at 8$US/ gram. He said fine but I might have lost my benefits plus I didn't have the money because it was a pretty massive man's chain with an anchor.
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