Gold Jewelry as an Investment

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Preciousmetal

New Member
I am intending to switch from silver to gold at a somewhat later stage. Of course we all know that the most ideal way to invest in gold is through coins and bullion. I want to move some of my precious metals position to a country that unfortunately does not allow the purchasing of precious metals, at least not in investment form. This leaves me with about the only remaining option to ride out the later waves of this bull cycle; gold jewelry. I see that there are quite a few articles on the net that advise that this is fine to do, but according to this one, it's not (at least in America):

http://www.slate.com/id/2139518/

Knowing that I am looking to exit into some real estate and agricultural land in my wife's country, my question is: If gold does make it to the high prices that analysts such as James Turk and Mike Maloney speak of, do you think I will still be able to sell gold jewelry at those prices, in a country that does not allow for precious metal investment? I ask this because I am afraid that when gold hits these types of high numbers, that it will be dangerous to wire rapidly depreciating fiat currencies over there. I would much rather exit some of my silver position soon and purchase some gold there - even if it be in jewelry form - in order to catch the final waves of this great bull cycle later on.

Therefore, should I:

(A) Forget about buying gold jewelry and wait for silver to get into triple or quadruple digits and then wire the fiat money over there and immediately buy into real estate and land

or

(B) Wait for some time to allow the gold to silver ratio correct itself a bit (i.e. make some wealth!), and then wire the money over to my wife's country and transfer the fiat to gold jewelry and sit on it until we start peaking, and then buy real estate and land?

Your advice and input is appreciated.
 
Why would you want to store your PMS in a country that doesn't allow you to buy them. In my opinion that would affect their liquidity. Also markup on jewelry is huge be better to buy old gold coins like eagles and sovereigns as said above it would probably be exempt from whatever law prevents you from buying bullion given their status as collectibles.
 
In many countries in Asia like India, Thailand or even Eastern Europe gold is traded in jewellery form according their weight.
Pay only gold price instead of jewellery price and you are even better off in your situation because you can sell your gold easily eve in your own country. If you are selling gold in most countries around the world you will be paid according the gold content of the items, and a MS70 AGE will not give you better return than a 14K broken necklace with the same gold content.
 
Thanks guys...

Shiney, I already have my metals stored in another country. That's the whole thing; I am afraid that when things get real bad and the prices of metals are really spiking, that I will not be able to liquidate into real estate and land as nobody will want to be wiring currencies at that point. Correct me if my understanding is a bit off on this one.

As far as coins are concerned, since I am talking about Morocco, they do have gold numismatics there, but I've been warned off numismatics. I would think jewelry keeps its price better in such a scenario.

But I guess you're right Shiney, that it'll be better to keep my metals outside and do my best with the wiring of funds at that time...
 
Preciousmetal said:
Thanks guys...

Shiney, I already have my metals stored in another country. That's the whole thing; I am afraid that when things get real bad and the prices of metals are really spiking, that I will not be able to liquidate into real estate and land as nobody will want to be wiring currencies at that point. Correct me if my understanding is a bit off on this one.
Click to expand...

That is something I have no idea about. :)
 
@ Preciousmetal
Morocco is very close to Gibraltar. Do you have any experience buying silver in Gibraltar as they have 0 VAT system?
 
projack said:
In many countries in Asia like India, Thailand or even Eastern Europe gold is traded in jewellery form according their weight.
Pay only gold price instead of jewellery price and you are even better off in your situation because you can sell your gold easily eve in your own country. If you are selling gold in most countries around the world you will be paid according the gold content of the items, and a MS70 AGE will not give you better return than a 14K broken necklace with the same gold content.
Click to expand...

This is so true. My aussie/vietnamese partner sometimes give me sh=t for buying lunars/gold coins (only 'cause i think she thinks i pay 50% premium or more ), tells me instead buy a gold ring or some jewelery, that way what ever country i go to and need to sell i won't lose money ( for arguments sake, if price stays stable) because there is little or no premium on gold jewelery you buy over here (for simple designed rings like typical male wedding band) 'Fancy' jewelery like a flash chain or detailed ring cost more, will check them out in a day or so.

Found an awesome site http://www.dyjewels.com/luxe_gold_chains/traditional_collection that have range of gold, platinum and palladium chains, but yeah prices are more than spot.. rather have ring closer to spot so no loss if need to sell in future, we all know the prices dealers offer.
 
Thanks Loving the Silver (and so am I! Ok, I love gold too, but I'll get back to gold a bit later down the line. Need some wealth creation first!).So the jewelry idea is not a completely bad one, provided you can find it from a reliable source, and try to eliminate any fancy work on the item which would mark up its premium.

Projack, Gibralter would be fine, but how to get it into the country, and Sargeant Argent (probably the best name on the forum) brought up the very valid point that you need to wonder about just how good liquidity will be in a country that does not officially allow investment forms of precious metals.

Here's another question: If gold goes up to the $8,000 plus area as many of us believe might happen, will anyone want to buy a piece of jewelry from you at that point?

Just wondering...
 
I still think that bullion (non-numismatic) sovereigns for example will be accepted and somewhat liquid just about anywhere, any time.
 
could you just buy olde world 1oz gold coins and then get them mounted in a 9 carat gold bezel and on a 9 carat gold chain? investment form disguised as jewellery.
 
Blockhead said:
could you just buy olde world 1oz gold coins and then get them mounted in a 9 carat gold bezel and on a 9 carat gold chain? investment form disguised as jewellery.
Click to expand...

Not a bad idea.. Going up a couple of notches, how about a bezel mouted 10oz Pamp Lady Fortuna hanging around your neck, Mr T style? Might be a bit heavy though :), but if you only wear it for the purpose of going through customs might not be so bad.. spray the bastard silver to get less attention, problem is finding a paint that is 'silvery' enough, not aliminium looking.
 
My jordanian friend's father mentioned that they use to take turkish gold coins, possibly 7.2g or 3.6g, and drill a hole in it and put on a gold chain as a means of storing it like jewellery. I've even seen the same turkish coin with the added pendant hook part so there wouldnt be any need to drill. :)

Indians normally buy gold bangles as a means of jewellery because they have the lowest making costs/premiums.
 
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