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3. Gold in Uncertain Times: Jewelry vs. Bullion

In times of crisis, gold stands as the ultimate pillar of stability. Timeless, reassuring and resistant to passing trends, it shines brighter as financial markets falter. But a critical question remains: which form of gold offers better protection in turbulent times — jewelry or bullion? And is resale truly profitable?

Historically, when markets tumble, gold prices rise. Yet not all gold is created equal in terms of purity, liquidity and tax treatment. Jewelry can be attractive, blending aesthetic appeal with cultural and familial significance — especially for women, for whom it often holds deep emotional value. But as an investment, it has clear limitations.

Jewelry: Elegant but Not Bankable

Most jewelry is made from 18-karat gold — 75% pure — compared to the 99.9% purity of bullion. In addition, production costs such as labor, design and branding inflate the purchase price, but are largely irrelevant at resale.

As a result, jewelry usually resells at a significant discount. Value is further reduced by melting costs, wear and tear or failure to meet investment gold standards. Appraisals are often required, slowing the selling process and adding uncertainty compared to bullion. While jewelry offers discreet portability, its resale value rarely matches its purchase price.

How Is Resale Value Calculated?

The process is straightforward but meticulous:

1. Weight: A 10g 18-karat piece contains 7.5g of pure gold (10 × 0.75).
2. Valuation: The market price per ounce (in USD or EUR) is converted to grams.
3. Discount: A margin of 8–15% is deducted to cover dealer fees and transaction costs.

Only the pure gold content is reimbursed — minus commission. Craftsmanship, design and branding are effectively written off.

A Lebanese jeweler, speaking anonymously to This is Beirut, said fabrication costs range from $5–6 per gram for local gold and up to $8–10 for imported gold from Italy or Turkey. He added that daily price fluctuations of $2–3 per gram have dampened consumer interest. “Today, only Lebanon’s wealthiest can still afford gold — and they’re focusing on bullion,” he noted.

Bullion and Coins: The Investor’s Solution

Gold bars and coins — such as Napoleons or Krugerrands — are classified as investment-grade gold. With certified purity (typically 99.9%) and weight, they are highly liquid and easily tradable on international markets. They also benefit from tax advantages in many jurisdictions, including VAT exemptions. However, they require secure storage and insurance.

The Golden Rule: Diversify

In uncertain times, diversification is key. A balanced mix of jewelry, coins and bullion can provide portability, security and long-term value.