By John McDonald
Deric Scott, vice president and senior analyst at Metals.com, said purity is not in question for bullion bars as they come with an assay certificate, while bullion coins are rated based on fineness of purity, and jewelry is stamped based on the karat system.
“It’s the most wonderful time of the year!” is echoing through shopping malls, and gold investors are happy to agree as 2019 nears its end. Thanks to the holiday shopping season, more investors than ever are placing investment capital in the yellow metal while also gaining valuable safe-haven assets.
“This type of gift has the most amazing lasting value,” one grandmother explained. “I feel great about giving my adult grandchildren gold items that I know they could sell if things ever got really tight and they needed money.”
While most recipients of these types of gifts say they would have a very hard time selling an heirloom-quality present – as most gifts of gold are – they admit the possibility gives them great peace of mind. “Who has the heart to sell a family heirloom?” asked one, immediately following up with, “I can’t say it hasn’t crossed my mind.”
If the idea of giving your loved ones a gift of gold this holiday season appeals to you, make sure that you are giving a gift that will literally keep on giving as long as the recipient retains ownership. Check out these three surprisingly ways serious investors are buying (and gifting) gold this holiday season:
1. They are buying artisan-quality investment jewelry.
If you want to invest in jewelry as an asset vehicle as well as a gift from the heart, then you will want to work with a company that is able to certify its jewelry as “investment grade.” This means that the jewelry is 24-karat, which can make it difficult to work with as a jeweler. Only very skilled jewelers working with specific chemical processes can make jewelry out of otherwise very soft, malleable 24-karat gold. The jewelry generally will not contain diamonds or gems in order to keep the process of estimating value simple.
A word of warning: Custom-designed gold jewelry comes at a premium cost when commissions are added to the equation. You can give a gift with lasting value when you give a gift of artisan-quality investment jewelry, but if you sell it in the near future you are unlikely to break even.
2. They are gifting bullion and valuable gold bars.
For the loved one in your life who has an affection for the classics, consider giving the gift of gold in classic form: gold bars or bullion. Not only are you giving the gift of financial security; you are also making a statement about the tangible value of the relationship with the recipient. No one can mistake the sentiment behind this straightforward holiday gift, and everyone can appreciate it.
3. They are upgrading current precious-metal possessions.
If you or a loved one already owns a valuable item of jewelry, you may wish to “add on” to the current possession by gifting a complimentary item, such as a ring shield or anniversary band, or another piece of jewelry, such as matching earrings or a necklace.
If you decide to make this type of investment, you may want to consider buying your investment piece from a company that also buys gold and gold items based on current market value. Many companies that sell gold will also buy it back, under certain conditions, which can add to the value of your gift in the event that the recipient is ever forced to sell.
Love Comes in Many Different Packages
Of course, the holiday season is not just about gift-giving. It is about love for family and friends. However, one of the best ways to demonstrate that love while also making a valuable investment is to give a gift of gold. Every time the recipient wears that piece of jewelry, they will remember just how much they mean to you.