Gold jewellery and gold bullion are both gold, and that is roughly where the similarity ends. They are priced differently, made differently, and sold back differently.
Neither is a substitute for the other, and this is not an argument that jewellery is a poor choice. It is an argument that they are different purchases serving different purposes, and that confusion between the two costs people money.
What you are paying for
With bullion, the price is metal plus a relatively small, transparent amount covering minting, freight and dealer margin. The metal is most of what you pay for, and that share is easy to calculate.
With jewellery, the price includes design, craftsmanship, brand, retail overhead, and often stones. The gold content can be a modest fraction of the retail price, particularly on branded or intricate pieces. That is not a criticism, since you are buying a made object with real skill in it, but it means the gold content and the price are only loosely connected.
Purity
Bullion gold is typically 9999 fine, or 99.99 percent pure.
Jewellery is almost never that pure, because pure gold is too soft to hold a setting or resist daily wear. It is alloyed for hardness, most commonly at 18 carat, which is 75 percent gold, 14 carat at 58.3 percent, or 9 carat at 37.5 percent.
The practical consequence is that a jewellery piece contains considerably less gold than its total weight suggests. A 20 gram 9 carat chain contains about 7.5 grams of gold.
Selling it back
This is the difference that surprises people most.
Bullion sells back against a published spot price at a spread you can ask about in advance. The process is quick because the product is standardised.
Jewellery, unless it has genuine designer or antique value in its own right, is generally bought back on scrap gold terms. That means the buyer calculates the fine gold content, applies a discount for refining and handling, and offers on that basis. The design, the craftsmanship and the brand contribute little or nothing.
Someone who paid retail for a piece and sells it as scrap will usually recover a fraction of what they paid. This is the single most common source of disappointment.
So which should you buy
The honest answer is that it depends on what you want the object to do, and there is no conflict in wanting both.
Buy jewellery to wear and enjoy. It is a made thing with craft in it, meant to be worn. Choose it because you like it. If it happens to hold some gold value, that is a bonus rather than the point.
Buy bullion to hold metal. It is standardised, transparently priced, and straightforward to sell. It is not decorative and is not meant to be.
The mistake is buying jewellery primarily because it is gold, expecting it to behave like bullion. It will not, and the gap shows up at resale.
Buying jewellery with resale in mind
If you do want jewellery that retains more of its gold value, a few things help. Higher carat means more gold per gram. Simple, less branded pieces carry less of a premium to lose. Plain gold holds value more predictably than pieces where stones make up much of the price, since stones are valued on their own separate and often less liquid market.
Keep any certification and receipts, which matter far more for jewellery than for bullion.
Frequently asked questions
Is gold jewellery a good way to buy gold?
It is an inefficient way to hold gold, because much of the price covers design, craft and retail margin rather than metal. It is an excellent way to own something to wear.
What carat is gold jewellery?
Commonly 18 carat at 75 percent gold, 14 carat at 58.3 percent, or 9 carat at 37.5 percent. Bullion is typically 99.99 percent.
Will a dealer buy my gold jewellery?
Many will, usually on scrap gold terms based on fine gold content rather than on what the piece cost.
How much gold is in a 9 carat item?
37.5 percent by weight. A 20 gram 9 carat piece contains about 7.5 grams of gold.
Should I buy bullion or jewellery?
Buy jewellery to wear. Buy bullion to hold metal. They are different purchases.
Browse bullion
We stock gold in coins, rounds and bars from one gram upward. See the range or visit the showroom at 124 Peterborough Street, Christchurch.
This article is general information comparing bullion and jewellery and is not financial advice.