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Gold Jewellery as Investment: Smart or Just Sentimental?

Your grandmother's gold chain, that wedding ring, the heavy bracelet from the 80s — is gold jewellery actually a good investment?

Paystreak Team2025-08-15Updated 2026-01-086 min read

In many cultures — particularly Indian, Middle Eastern, and Mediterranean — gold jewellery isn't just decoration. It's the family bank. Portable, divisible, and beautiful wealth that can be worn, gifted, and liquidated when needed.

The Case for Gold Jewellery

There's wisdom in this approach. Unlike a bank account, gold jewellery can't be frozen, inflated away, or require a password to access. In a crisis, you can literally walk out the door wearing your savings.

The Problem: Retail Markup

Here's where it gets tricky for Kiwi investors. When you buy gold jewellery from a retailer, you're typically paying:

  • +Gold value: The actual gold content
  • +Manufacturing: 10-30% for craftsmanship
  • +Retail margin: 50-200% markup
  • +GST: 15% in NZ

Total: You could be paying 2-3x the gold value

And when you sell? A jeweller will typically pay you scrap gold value — which is 90-95% of the actual gold content. You lose the craftsmanship premium entirely.

When Jewellery DOES Make Sense

Good Reasons

  • • Buying 22K or 24K gold (not 9K or 14K)
  • • Buying from wholesalers or gold souks
  • • Inheriting family pieces (already paid for)
  • • Cultural significance + store of value
  • • Portable emergency fund

Bad Reasons

  • • Buying retail for "investment"
  • • Buying gold-plated (no gold value)
  • • Expecting to profit on resale
  • • 9K gold (only 37.5% actual gold)
  • • Designer brands (paying for name)

The Better Alternative

If pure investment is your goal, consider this approach:

The Smart Kiwi Gold Strategy

  1. 1Buy investment bullion for your core gold position (low premiums, high liquidity)
  2. 2Buy high-karat jewellery (22-24K) for wearable/portable gold
  3. 3Keep receipts and certificates for all purchases

Where to Buy in New Zealand

Gold Jewellery

Ethical gold and silver jewellery

Beyond Bling NZ

Investment Bullion

Pure gold at 3-5% premiums

MyGold NZ