Why Gold Jewellery May Not Be a Smart Investment: Experts Explain the Hidden Costs
Gold has historically been considered a safe and dependable investment in indian households. Families across generations have relied on gold jewellery not just as a symbol of wealth and tradition, but also as a way to store value. However, financial experts warn that investing in gold jewellery may not be as lucrative as it seems due to hidden costs and limitations.The Hidden Costs of gold Jewellery1. Making Charges:o When purchasing gold jewellery, buyers pay making charges, which can range from 5% to 20% of the total price depending on design and craftsmanship.o These charges are non-recoverable when selling the jewellery, reducing your effective returns.2. Purity Concerns:o gold purity is measured in karats, and jewellery often contains alloys to increase durability.o Lower purity can affect resale value, and buyers may not always get the full market price when selling.3. Storage and Security Costs:o gold jewellery requires secure storage, often in lockers or at home, which may involve additional costs or insurance fees.4. Market Price Fluctuations:o While gold is generally considered stable, its short-term prices can fluctuate. Jewellery sold during price dips may yield lower returns than expected.5. Illiquidity:o Unlike gold ETFs or sovereign gold bonds, jewellery is not instantly tradable. Selling involves finding a buyer or pawn shop and may incur additional charges.Better Alternatives for gold InvestmentExperts suggest that if your goal is wealth creation, there are more efficient ways to invest in gold:1. Gold ETFs (Exchange-Traded Funds):o Traded on the stock exchange and reflect real-time gold prices.o Lower transaction costs and easy to buy and sell.2. Sovereign gold Bonds (SGBs):o Issued by the government with annual interest in addition to price appreciation.o Safe, long-term investment with capital gains tax benefits.3. Digital Gold:o Platforms allow you to buy gold in grams with low premiums.o Can be redeemed physically or in cash based on market prices.ConclusionWhile gold jewellery carries cultural and emotional value, it may not be the most efficient investment due to making charges, resale losses, and liquidity issues. For investors focused on financial growth and wealth preservation, options like gold ETFs, sovereign gold bonds, or wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital gold are often smarter alternatives. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.