Gold is one of the precious metals favored by jewelers. Especially when making expensive jewelry and ornaments
The gold chain is especially a timeless jewelry that can be worn with almost any outfit. Unless you think about the price you have to pay, it’s hard to resist its sheen.
Real gold chains are quite expensive, so it’s normal to ask yourself if it’s worth buying.
We’re here to help you decide. Here, we will discuss whether a gold chain is a good investment, its actual cost, and its pros and cons.
Is Buying a Gold Chain a Good Investment?
Gold chains are a good investment from a durability standpoint because they don’t depreciate over time or inflation.
As a result, central banks around the world classify gold as a Class A investment. However, the value of gold is affected by market demand and supply. Keep in mind that buying an expensive gold chain doesn’t mean it’s valuable. The value of gold lies in its quality, not its price.
Therefore, when buying a gold chain as an investment, you need to be involved in every step of the way. The quality of the gold is checked and evaluated by a trusted expert or jeweler. In addition, when considering buying a gold chain for investment, first consider the following three golden rules:
1.Make Sure It Is Visually Appealing.
This means that before considering buying a gold chain to invest, make sure it’s an item you don’t mind wearing.
So that you can be sure that you will like it.
In the worst-case scenario, you won’t be able to sell it later, at least you’ll enjoy keeping it.
2. Measure the Value of Design and Materials.
Sometimes, the price of a gold chain may exceed the price of the gold used to make it. The value may also depend on the design of the chain and the quality of the gemstones it may contain.
Therefore, it is best to get a proper assessment from a trusted jeweler. Learn about the purity of gold and the value of design.
Also, consider the buyback terms of the reseller from which you purchased the chain. If this is not possible, you can use websites such as Goldcalc.com or Meltvalue.com to determine the scrap value of the chain.
3. Consider the Degree of Volatility of the Gold Chain Price.
As a precious metal, the value of a gold chain may fluctuate randomly depending on its availability and demand.
You may have to pay a premium to buy a solid gold chain.
So, if it’s a chain you can wear, it’s worth it, at least until its value goes up and you can sell more.
How Much Should a Real Gold Chain Cost?
There are many factors to consider when considering the cost of a real gold chain.
However, the cost of a gold chain includes the melting price of the gold content and the cost of other metals or gemstones contained in the chain. Labor costs and jewelers’ profits must also be taken into account. These factors make it difficult to predict, so there is no clear rule of thumb that can help you determine the exact cost of a true gold chain.
However, as a guide, you can use the double rule to help you understand what to expect. This means that if the chain costs $500, you can expect to pay $1,000.
But keep in mind that the cost of a mechanical chain includes the cost of gold, alloy metals, and labor.
For handmade jewelry, the cost can be higher because the manufacturing process involves more steps. The same principle applies to custom chains and other jewelry.
Advantages and Disadvantages of Investing in Gold Chains
While the gold chain is indeed a good investment, it has both advantages and disadvantages. Here are some important advantages and disadvantages of investing in gold chains:
Advantages
- It is durable, which means it will not deteriorate or rust over time.
- You can wear it or sell it at the right time for a profit.
- You can save it for emergencies and then cash it out for cash.
- It has a variety of uses, including electronics manufacturing.
- It never goes out of style in the fashion industry.
- Its value does not depreciate due to inflation.
Disadvantages
- Having a gold chain comes with the need and cost of safety and insurance.
- Unlike other investments that offer dividends throughout, the gold chain will only pay you when you sell.
- The rise in the value of gold will only occur as the dollar depreciates.
- After the bubble effect of investor panic and excessive gold prices, gold chains can lose value.
What Should I Pay Attention to When Buying a Gold Chain? (Tips)
Once you decide to buy a gold chain, there are a lot of things you need to consider before buying. To make sure you buy the gold chain that’s right for you, here are some tips you can use:
1. Understand what types of gold chains are.
Gold-plated chains are the cheapest, but the plating fades over time and is therefore not durable. Hollow gold chains are also cheaper and lighter than solid gold chains. However, hollow gold chains are more likely to break or dent, and they are impossible to repair. Therefore, the safest option is to buy a solid gold chain.
2. Select the carat number of the gold chain.
Low-karat gold is considered more durable than high-karat gold, but is more problematic for those who are sensitive to metals. This is because low-carat gold may contain nickel content, which may cause allergic reactions. Therefore, choosing the right carat for your gold chain is 14-18k. They are less allergenic and have a higher value and durability.
3. Decide the type of link you need.
The type of chain links you choose will determine whether they are prone to kinking or breaking. Omega chains and round snake chains are links that are easy to twist and break. Therefore, your best options are wheat chains and box-shaped links. They’re fairly flexible and sturdy enough in case you decide to add a charm or pendant. Other good options are curb chains, anchor chains, rope chains, sailor chains, and Figaro chain links.
4. Check the quality of the buckle.
Most chains have ring clasps because it is the cheapest. But it cracks easily and is not durable. The best option for the clasp that fits your gold chain is the lobster clasp. It is durable and will not open easily no matter how hard the zipper strip is.
5. Know how to value a chain.
You can use the gold jewelry calculator to calculate the exact gold value of this chain. Also, keep in mind that the value of a chain lies in its weight, not its length or dimensions.