Centuries before the first gold coins were struck…There was another form of money: pure gold jewellery.
Gold jewellery was used as savings, currency, and even as a form of barter. In fact, the tradition is so tied to our idea of money that modern currencies like the Thai Baht are named for the jewellery that preceded it. In that case, one could even break off detachable gold links to pay for goods and services.
Even today, in India, jewellery is the primary form of gold within the country. They buy pure gold necklaces and bracelets instead of coins and bars. For every ounce of gold in coin or bar form bought in India, roughly another three ounces are bought in jewellery form – it’s their preferred form of investment gold.
Throughout much of history, individual wealth has been denominated in jewellery form. Because in the past, you couldn’t leave your wealth in your home – even if you had a coin or bar — it just wasn’t safe. People lived very close together, in community homes, huts, etc. Storing gold at home wasn’t as secure as it is today.
As a result, most people wore their wealth for security reasons. Thus, gold jewellery quickly evolved into one’s “wallet.” People wore jewellery as a way of carrying their wealth. They kept their money draped around their neck or wrist, which amounted to a form of portable wealth.
Wearable Wealth: Jewellery with as Much Pure Gold Content as American Eagle Coins
This brings us to today… Most jewellery sold in stores doesn’t contain that much actual gold.
The jewellery you find in malls, and even high-end places like Cartier or Tiffany’s is typically 14-karat gold or less. That means, almost 50% of the metal composition consists of alloys including brass and steel. But mall jewellery still costs a pretty penny — typically selling for 3x to 4x the amount that its gold content would warrant.
Why the huge markup? People are buying the brand as a fashion statement. When it comes to gold, we believe only pure gold is gold. And when you buy it, you should pay reasonable premiums now and then be able to recoup its market value later.
That’s why all our real gold jewellery has the same purity as sovereign coins — 22 karat (91.6%), the same as an American Eagle or Krugerrand. Of course, there’s no substitute for owning gold bullion coins and bars. But for those seeking diversification, pure gold jewellery offers portability and discretion, all in wearable form so that you can enjoy it.
Most ordinary people have no idea how much gold is in a single piece or what it’s really worth. And while an individual piece’s intrinsic value may be nearly impossible to guess at a glance, there’s no denying the beauty of real gold. Each piece is designed to be worn daily, with many timeless styles to choose from. This makes it easy to give the gift of gold to loved ones this holiday season.
Article courtesy of Jeff Clark from GoldSilver
