To be sure, these are difficult times that we live in. Unemployment is up, home values are down, retirement funds are decreasing in value, how then do you insure that your investments increase in value? In times like these it's best to turn to the enduring value of fine gemstones and high Karat weight precious metal jewelry. In an age of artificial values, over hyped, feel good products of the month and trinkets designed for throw away mass market consumption one of the few things that continues to create lasting value is fine jewelry crafted in 24K gold.
The popular misconception that pure 24K gold is not suitable for jewelry couldn't be farther from the truth. While it is certainly true that 24K gold is quite malleable, it is not too soft for use in pendants, earrings and necklaces if crafted and handled correctly. The secret to making 24K gold "wearable" is to anneal the gold by bending and shaping the material thereby compressing the crystalline structure of the metal and making it harder. After the jewelry is formed into its final shape, the gold is burnished, further increasing the strength of the gold and giving it the deep yellow color and brilliant luster that is characteristic of pure 24K gold.
When buying any high Karat weight gold a common question is just how much gold is in the piece of jewelry? How does the weight vary between 14K, 18K, 22K or 24K gold? For thousands of years the purity of gold has been defined by the term Karat, a percentile unit of measurement with a base of 24 units. One Karat gold is 1/24th pure gold with the remaining material a mixture of other metals. 100% pure gold (really 0.9999% or more) is defined as 24/24ths or 24 Karats of gold. The Federal Trade Commission mandates that all gold jewelry sold in the United States be marked with a designation of Karat fineness (K) and vary in purity by no more than +/- 0.003%.
When an item is identified as 18 Karat gold, it means that there are 18 parts gold and 6 parts of metal alloy (75% pure) per unit measure of gold. An item identified as 14 Karat gold is 14 parts gold and 10 parts alloy (58.5% pure) per unit measure of gold. It's interesting to note that jewelry marked less than 10K (41.7% pure) is not legally considered to be gold in the U.S. and can not be sold as such.
According to a recent study by the independent research firm GfK, gold has a perceived longevity, purity and value that set it apart from other luxury goods. Differentiated by its relatively transparent investment value, gold's aesthetic qualities are acknowledged as versatile and suitable for everyday use. In contrast, other luxury consumables such as electronics or clothing are viewed as having short-term appeal and lack the investment value and longevity of gold.
In countries all around the world, political, economic and civil uncertainties are woven into the fabric of everyday living. People are accustomed to wearing or carrying portable wealth, typically in the form of high Karat weight gold jewelry. It's the "insurance policy" of choice throughout much of the world.
As an investment vehicle, 24K jewelry has one more distinct advantage. The purchase of high Karat weight gold jewelry is exempt from the U.S. 1099-B reporting requirements that burden other forms of gold ownership. For example, individuals selling (25) 1-ounce Canadian Gold Maple Leafs are required to disclose their name, address, and social security number to the purchasing dealer. There are no such 1099-B reporting requirements for 25 ounces of 24K jewelry.
Giving gold can be both a beautiful gesture and a wise investment. But while gold coins or bullion typically end up in a safe deposit box, never to be enjoyed in any practical way, 24K jewelry can be both a treasured keepsake that is enjoyed daily as well as a secure source of value should an emergency arise.
Copyright © 2011 Du Lyon Fine Jewelers.
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