A Guide To Investing In Your Gold Jewellery Collection

Priya Faith is the founder of Umara Jewellery. Punjabi for ‘lifetime’, the ethos of Umara is simple; to offer timeless jewellery that will last a lifetime… and beyond. Their designs are lovingly handcrafted in India from 14, and 18-karat gold and natural diamonds before being hallmarked in London. 

While many people choose to invest in gold jewellery for its beauty, it can also be a valuable commodity. The trick? Understanding what you're buying so, you can enjoy the best of both worlds. In this article, I'm sharing the things you should know when buying gold jewellery and my golden rules of building & styling a timeless collection for generations to come. So, let's get into it! 

Why invest in gold? 

Thanks to a solid history, gold is often considered a reliable option compared to other popular investments. The primary reason for this is that gold prices rarely decrease significantly. The price of gold increased in the 2008 financial crisis and during the 2020 global pandemic, increasing in value by over 25%. As you don't need much upfront capital to invest in gold, it's a great option that you can build over time. 

Plus, who wouldn't want an investment you can wear? 

Important considerations when buying gold jewellery

With so many options on the market, choosing which jewellery is best for you can take time and effort. While many factors come into play, there are three things you should always consider.

Know your gold. The three most common types of gold jewellery are gold plated, gold vermeil and solid gold. So, what's the difference? 

Gold-plated jewellery contains 0.05% actual gold or less: a very thin layer of gold is plated on top of base metal, typically copper or brass, to achieve a gold appearance at a very low cost. 

Gold vermeil jewellery is a thicker gold plating over sterling silver. The gold plating must be at least 2.5 microns thick in the UK and the US, while in Canada, the requirement is 1 micron. To offer some perspective, a micron is 0.0001 of a millimetre. So, while vermeil plating is thicker, vermeil jewellery contains minimal gold. 

Solid gold jewellery is crafted entirely from gold. However, this is not to be confused with pure gold (24 karats), as it's rarely used for jewellery. As pure gold is highly malleable, gold is alloyed with other metals to make it more durable and suitable for jewellery. As a result, jewellery is commonly made from 18, 14 and 9-karat gold. 

From an investment perspective, solid gold jewellery is the option that is truly worth its weight in gold. Of course, the higher the karat, the higher the gold value. 

Check authenticity. Verifying the quality of gold-plated and vermeil jewellery is difficult for consumers. So, you should always opt for a reputable brand and check its reviews. 

Authenticating solid gold jewellery is sometimes more straightforward, depending on the country. In many countries, including the UK, hallmarking is a legal requirement for all gold jewellery weighing over 1 gram. A hallmark certifies the purity of the gold used in your jewellery as it is usually a number such as '18' or '14' followed by symbols. 

When investing in gold, check the legal requirements in the retailer's origin so you know what you're looking for.

My third and final tip is to consider the weight when purchasing solid gold jewellery. If you check the weight of the jewellery, you'll be able to calculate the value of the gold. Of course, finished jewellery pieces are valued significantly higher than pure gold weight, particularly if it's an intricate or rare design. 

Building your dream jewellery collection 

Now that I've covered the need-to-knows, I wanted to share some advice for building your dream jewellery collection, so I called on celebrity stylists Nico and Alice Monica. 

For many of us, jewellery holds sentimental value as much as it does monetary. Striking a balance between finding a beautiful piece and making smart investments is simple once you know what to look for. From the perfect gift and family heirlooms to celebrating a milestone achievement or an ode to a special memory, jewellery tells a story. Beyond practicality, jewellery should bring you joy. 

Alice explained, "there's no hard and fast rule for how much you should spend on jewellery. But you should probably figure out your upper limits before you start shopping. Before you buy anything new, take a good look at everything you already own." 

My golden rule for every purchase is to calculate cost-per-wear. Just imagine the cost-per-wear on gold earrings you can wear daily, forever. Think about how you'll style each piece and how it complements your collection 

Alice recommends creating a collage of influences, "pull from photos of fashion bloggers, models, advertisements, fashion editorials, or whatever else inspires you." She added, "taking care of the basics is important, but trends will update your look. Do some research on runway trends. Off-the-runway looks might be daunting, but there are ways to incorporate the trendiest items and motifs into any wardrobe."

 For Nico, styling jewellery is about having fun, "I'm always saying fashion is an expression of self. So, my main tip for wearing gold jewellery is to have fun with it! There's no wrong way of self-expression".

She added, "styling gold works best when paired with warmer colours such as pink, purple, yellow, red etc. Gold jewellery can be worn as minimally or as busy as you'd like. I'd suggest keeping it simple for new jewellery lovers, but after a while, most become intrigued with layering and mixing lengths, sizes and textures."

Alice explained, "like your clothes, each piece of jewellery should help you express your true beauty. Choose jewellery that enables you to embrace your skin colour. Opt for metals and gems that can lend some shine to your natural skin tone. Silver is the favourite metal for many of us, but gold can be beautiful, too, if you have matte skin and dark hair. There is no right jewellery for the right skin tone. Instead, whatever lets you be yourself and be beautiful in your skin."

Finally, once you begin building your collection, prioritise taking care of it. Proper storage, regular cleaning and maintenance will ensure its longevity. Additionally, investing in insurance for valuable items will offer you the peace of mind to confidently wear your jewellery. 

Happy shopping!