Why Buy Gold Jewellery?
As a British Asian living in North West London I would spend countless days as a child with my parents going from gold jewellery store to gold jewellery store on Ealing Road. These were all day outings with my mum eagerly inquiring about the numerous pieces which caught her eye while my dad would be asking the sales(wo)man about the price of gold that day. All the while I would be thinking about which restaurant to eat at on the road 😊
Being more interested in food than gold jewellery as a child is quite telling and probably a common theme amongst us 2nd/3rd generation British Asians. In fact would rather purchase luxury clothing brands than buy gold the way our parents did but I hope by reading this blog, some of you may reconsider your buying habits.
If the below has got you thinking about buying real gold jewellery, you may find it helpful to read about how to buy gold jewellery here. Feel free to browse our store as you may find something you like, or come visit us in store where you can check out our entire catalog.
Tradition and culture
The world mines about 2,500-3,000 tonnes of gold each year. About 25% of that goes to South Asia. Why? Well…
Weddings. Weddings. Weddings. South Asian weddings are dripped in gold where tradition and culture play a central role (along with the bride and groom of course). It was similar for our parents, and probably for our children too, we do weddings BIG in our community inviting everyone our parents have ever spoken too, and gold is always the number one gift.
It is said to bring good luck to the couple, help them through rainy days, and one day even passed onto their children on their wedding day. There are very few gifts that can do all that!
Religion also plays a big role in why we care so much about gold. In Hinduism, Goddess Lakshmi, the Hindu goddess of prosperity, is often shown dropping gold coins on the ground representing spiritual and material prosperity. In Islam, the colour gold symbolises Paradise, when paired with green. The beautiful Golden Temple located in Amritsar, Punjab, is a place of pilgrimage for the Sikh community. Gold is also referenced in similar fashion in Buddhism, Jainism and even Christianity.
Real gold jewellery can be perceived as expensive but that is because the metal used, gold, is a finite resource. In fact, it is estimated that ‘new gold’ (ie mined from the ground at the determinant to the planet) is likely to stop in the next 30-50 years.
However, gold is soft and mouldable (which is why you see such fine design work incorporated in gold jewellery) therefore most gold jewellery is made from recycled gold, mined from the ground long ago.
Unlike imitation gold and gold plated jewellery which is typically made from copper, zinc, sterling silver and nickel, real gold jewellery will never be associated with fast fashion.
Instead, real gold jewellery is to be purchased with the view of keeping it for years and generations to come ideally as a family heirloom or thoughtful gift. However, if you did want to change the design, it can always be melted and re-designed really easily which offers great flexibility.
Long term value
The purchase of real gold jewellery has been popular with many generations because not only is it beautiful and elegant, but it keeps it value.
Typically when you buy a piece of real gold jewellery the amount you pay is determined by the weight and purity. For each gram of gold bought, there is a mark-up added (anywhere between 100%-200%) to compensate the jeweller for their design work and time. However, if in three years you wanted something different, you would always be able to recover the value of gold used to make that item.
That means you could recover anywhere between 50%-100% of the amount actually spent on that item depending on what happens to the price of gold during that time.
In fact, over the last 5 years, the price of gold has increased by 115% (latest price as at 26th September 2020). Which means if you purchased real gold jewellery 5 years ago and sold it today, it is likely it would have cost you nothing! By comparison, the resale value of imitation gold and gold plated jewellery is little to nothing.
So it may mean you spend more today, but ultimately real gold jewellery arguably costs less and offers better value over the long term.