Gold Bars or Jewellery: Which Is Better for Investment?

The dilemma people who want to save in gold face most often is whether to buy bars or jewellery. The pieces in the window may look tempting, but once savings are the goal, the criteria change. Choosing the product that fits your purpose is the most effective way to reduce losses when you sell.

Gold is priced differently depending on the form it takes. On one side are bars that carry the value of pure gold; on the other, jewellery with handwork and design added. To decide which is right for you, you need to understand the cost structure of each.

What a gold bar is

A gold bar is 24 karat gold (995 or 999.9 fineness) produced by refineries. It is sold in various weights starting from 1 gram, usually in sealed packaging. It carries no design, stones or handwork; it is made purely for saving.

The very low craftsmanship cost means that almost all of the money you pay goes into the gold itself. The spread between the buying and selling price is also among the narrowest of any product. You can follow current 24 karat prices on our market page.

What jewellery is, and how it is priced

Jewellery is made to be worn. Because pure gold is very soft, jewellery uses 14, 18 or 22 karat gold mixed with metals such as copper and silver. When you buy a necklace, ring or pair of earrings, workshop costs, design and handwork are added to the value of the gold.

This is called the craftsmanship fee. With jewellery set with stones or made with intricate work, it can be quite high. As we explain in what is the gold craftsmanship fee, these pieces are more about personal use and taste than about saving.

How craftsmanship affects the selling price

The real difference between jewellery and bars appears when you want to turn them into cash. When you sell a necklace, it is valued by the amount of pure gold it contains. Craftsmanship, stones and design are not included.

Because the craftsmanship fee you paid is not refunded, there is a good chance you will lose money when selling jewellery, even if gold prices have risen. Bars carry no craftsmanship loss, only the buy/sell spread. To be in profit with a bar, the price just needs to rise enough to cover that spread. You can run the numbers in our tools section.

22 karat bangles

There is one group of jewellery often chosen for saving: plain 22 karat bangles. Plain bangles such as the twisted burma and the flat ajda are jewellery in form, but their craftsmanship cost is low.

This makes plain bangles something you can wear that also loses relatively little when sold. If you want to both wear and save, they offer a middle way. You can see bangle models in our catalogue.

Gold bars and jewellery compared

Short-term and long-term goals

How long you plan to save matters when choosing. If you plan to sell within a few months or a year, a 24 karat bar that carries no craftsmanship loss is the more sensible choice. Selling a crafted piece after a short time means losing the craftsmanship fee you paid.

For savings you plan to keep longer, plain bangles or Turkish gold coins such as the quarter and the Ata Lira are also worth considering. Whatever you choose, make sure you store your physical gold safely.

This article is for general information only and is not investment advice.

Frequently Asked Questions

Is a gold bar the same as packaged gram gold?

Yes. Packaged gold of 1, 5 or 10 grams is simply small 24 karat bars. The only difference between them is weight and size.

Is it possible to buy jewellery without paying for craftsmanship?

If you buy a 14 or 18 karat necklace, pair of earrings or ring, paying for craftsmanship is unavoidable because work went into making it. With packaged gram gold and plain 22 karat bangles, the craftsmanship cost is very low.

Is a bank gold account different from buying physical gold?

Gold in a bank is a book entry that appears in your account; there is nothing to store, but the spread can widen when markets are closed. Physical gold is in your hands and can be sold at a jeweller.

Can gold bars be sold at any jeweller?

Sealed packaged gram gold and bars can easily be sold at jewellers at the current buying price.