Gold is arguably the most reliable investment go-to on the planet. In 2020, when the unthinkable happened – that’s the price of oil plummeting – gold performed well. In fact, the price of gold went up during the first few months of the coronavirus pandemic and was one of the only ‘traditional’ stocks that performed well.
Let’s take a look at just why gold makes such a solid investment – for 5 millennia, gold was common currency. Used as money for thousands of years, gold was used to back the paper money that we used in our pockets.
Gold is a great bet in terms of an investment but there are golden rules (what else) to making sure that your investment works for you.
1. Don’t buy gold in principle
Buy it for real. There are many clauses, fees and conditions with the purchase of gold and buying big bullion is one of the quickest ways to ensure that you will never actually catch sight of your investment. The simplest and most straightforward way to buy your gold in person is to buy gold jewellery.
2. Keep it liquid
Selling gold bullion and coins isn’t always as easy as it might seem – or as reliable. When you invest in gold jewellery from a reputable jeweller, such as Cartier or Bulgari, you are buying their hallmark standards with it. Buying from a big brand gives you the automatic assurance that your carat count will be on point and your re-sale value assured.
3. Pure and simple
When investing in gold it can be tempting to believe that, the more you throw at a piece of jewellery, the more it is worth. While this can be true of diamond or precious stones, it is not always true of gold. It is a slight distinction, but one to bear in mind when deciding what you are choosing to invest in. For every gemstone set into your piece of gold, the cost of labour goes up accordingly. This means that you are paying for the craftsmanship and the gemstones, rather than the gold content. While your gold will hold its value, it is always useful to keep the option of having your gold melted down open. Remember, this is not a purchase of the heart, but a head-led investment. While Cartier produces many sparkling pieces, the brand counts solid gold LOVE bracelets and rings and the fabulous Juste De Clou nail-inspired collection in solid gold.
4. Brand buying power
As with buying jewellery from one of the big luxury houses to wear as jewellery, some of the brand magic and romanticism sticks to the piece and can boost your return on your investment. Unlike gold bullion, the jewellery’s brand will add to its value and can increase in value as time passes. Value can increase with renewed interest in any big brand and it may only take a key connection – a notable celebrity patronage or Royal support – or a big screen blockbuster – think of Pretty Woman’s ruby and diamond necklace – to generate the sort of buzz that adds value to any brand.
5. Accessing your investment
Investing in gold jewellery means that you have easy access to your funds at any given moment. This is especially true when considering Suttons and Robertsons. As luxury pawnbrokers since 1770, Suttons and Robertsons work with you, if you are looking to sell your gold, and will give you an expert valuation of your gold asset. Unlike unlocking other investments in property or art, our gold pawn shop offers competitive rates and cash on the spot. What makes the best pawnbrokers in London such an attractive option for a gold loan is that it can be a short-term loan agreement and you can retrieve your jewellery at the end of the loan term. Suttons and Robertsons offer fast gold loans up to £2m.