Monday, 19th December 2005 (4315 views)

Jewellery shoppers are being urged to think of gold items such as necklaces, bracelets and rings as gifts and not investments.

Consumers, particularly in the US, are now being told that it is better to buy pure gold for investment purposes, than buy items such as gold jewellery.

Dan Ballard, national sales manager of Precious Metals West, feels that money spent on gold jewellery goes more towards the cost of design, manufacturing and retail of the item, than towards its weight in gold.

As a result, investors should avoid purchases of gold jewellery if their main intention is to make a big return on their investment in the future.

Many people in India continue to buy jewellery such as gold bracelets rather than investing in the stock market.

However, for Indian buyers, this can prove profitable, since Indian bracelets tend to be simply designed and quite heavy in gold, unlike American ones.

Prices in gold recently hit a 24 – year high of $554.50 (£312.71) an ounce, prompted by increasing investment in gold from developing economies.

 

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