Gold and Jewelry as an Investment

Jewelry can be a good investment, but it depends on the type, quality, and purpose behind the purchase. High-quality, fine jewelry—especially pieces that feature precious metals like gold or platinum and high-grade gemstones like diamonds—can retain or even appreciate in value over time. Vintage or antique pieces or those with historical significance often become more valuable as they age due to their rarity and the timeless appeal of their designs.

To ensure jewelry is a sound financial investment, focus on pieces that have intrinsic value, such as higher carat weights and type of gemstones, or pieces from reputable brands. Additionally, while jewelry can be a beautiful and wearable asset, it can also be considered a part of a diversified investment portfolio and adds to personal net worth. With the right choices, jewelry can be both a beautiful addition to your collection and a valuable heirloom or financial asset.

Gold Defined

Every real piece of jewelry should have a so-called embossing. This embossing is also called hallmark or gold stamp. The stamped number gives information about the value of the precious metal used. The number indicates the gold content in percent, i.e., 585 gold has a gold content of 58.5 percent (this corresponds to 14 carats) and 750 gold has a gold content of 75% (this corresponds to 18 carats). The purest and highest quality gold available on the market has a gold content of 99.9% (this corresponds to 24 carats). This gold is called fine gold and is what is used for gold coins, gold bars, and fine jewelry.

Gold can be "mixed" with other precious metals and is then referred to as an alloy. This does not represent a reduction in value. On the contrary, the mixing of different precious metals is necessary to obtain different shades and qualities. Depending on the proportion of gold, not only the color changes, but also the hardness, malleability, and resilience. For pieces of jewelry that are to be worn permanently, such as wedding rings, and thus experience increased abrasion, 750 gold or gold-platinum alloys are suitable.

The higher the gold content, the higher the quality of the jewelry. So, if you are thinking about gold jewelry as an investment, you should buy at least 14-karat gold jewelry or even 18-karat jewelry. Here, the color alloy does not matter. Both a noble chain from rose gold, a timeless bangle from yellow gold, and a ring from white gold are good investments.

Historical Gold Price increases

Gold is still a guarantee for stable purchasing power and has proven to be an inflation-proof and risk-free investment. Over the past two decades, gold has seen significant appreciation, largely driven by economic uncertainties, currency fluctuations, and market demand. In the early 2000s, gold was priced at around $300 per ounce. Currently, gold is trading at around $2,755 per ounce, marking an increase of over 500% in twenty years.

Several factors contributed to this appreciation. During the 2008 global financial crisis, investors sought gold as a safe-haven asset, driving up its price significantly. In the years that followed, factors like inflation fears, U.S. dollar fluctuations, and geopolitical instability continued to sustain demand. More recently, in 2020, the COVID-19 pandemic again pushed gold prices to new highs, as economic uncertainty and low-interest rates boosted its appeal.

In addition to being a hedge against inflation and currency depreciation, gold’s limited supply and physical durability make it a popular choice for long-term investment. This consistent appreciation over the last two decades has reinforced gold's reputation as a reliable store of value in an unpredictable financial landscape.

Gold and Gemstones

Adding gemstones to gold can enhance its value significantly by combining the intrinsic worth of gold with the rarity and desirability of precious stones. Gemstones like diamonds, sapphires, emeralds, and rubies have their own market value, which depends on their quality, size, and cut. When set in gold, these stones elevate the overall piece, adding both aesthetic appeal and value.

Gemstones can also increase the rarity and exclusivity of a piece, particularly if they’re unique stones with exceptional clarity, color, or size. For instance, a gold ring set with a high-carat diamond or a rare sapphire can be much more valuable than the gold alone. Gemstones add a level of craftsmanship to jewelry as well, with intricate settings, custom designs, and unique cuts adding to its value.

Many consumers who follow jewelry trends are not only interested in gold but are also looking for visually stunning, one-of-a-kind pieces. Ultimately, the union of precious metals and gemstones creates a product that holds and can even increase in value over time, offering both aesthetic enjoyment and greater investment potential.

Morganite & Diamond Halo Earrings 14k Rose Gold

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At Palacio Jewelers in world-famous St. Thomas, the jewelry capitol of the Caribbean, we sell gold in many forms. From gold chains to bracelets to rings, we custom make our pieces individually from the raw gold which we source ethically from suppliers around the world. We buy our raw gold in bulk from these wholesale suppliers, allowing us to pass our savings on to you. We sell all our gold at the exact gram weight of each piece, measured on our precise jewelry scales, so you know exactly what you are buying. We often add diamonds and colored gemstones to our gold jewelry, an addition that adds significant value to each piece.

Let us show you the latest trends in gold jewelry and gold and gemstone jewelry. We know our customers are looking for stunning jewelry at good value great prices and that is what we provide.

Sonny and Carolina, owners of Palacio Jewelers, warmly welcome you to their jewelry store, a long-time fixture in the heart of St. Thomas in the United States Virgin Islands. Since 1998, Palacio Jewelers has been a beloved part of the local community, serving tourists and residents alike with a commitment to excellence and a passion for the art and design of fine jewelry.

To learn more, call 340-775-7009 or visit their new website at www.palaciojewelers.com. They will be happy to share with you why it makes sense to buy jewelry in the Virgin Islands. Click here to read more blogs and learn more about buying jewelry, and specifically buying duty-free, tax-free jewelry on the USVI.

If you’re planning a trip to the St. Thomas, plan to visit Palacio Jewelers, 5333 Raadets Gade, Suite 11 for a personalized experience in an inspiring setting. Inquire about their ability to design a special piece of custom jewelry based on your personal style, story, and sophistication.