I get why Gold is a good long-term investment, but buying Gold Jewelery can be a terrible 'investment' in the short-term

[helenen]

The other day, I accompanied my wife to buy a small earring set for about Rs 58 K -#my2cents on the experience

Scanning through the bill, I saw

• Rs 12,800 making charge (seems high) and
• CGST+SGST of about 843 each
• So, a 'loss' of Rs 14,500 (about 25%) right out of the door that would take a few years to recover from

Of course, one can't put a price on the 'satisfaction' of owning and flaunting jewelry, but as a short- term investment, it sucks.

So, why do Indian families continue to 'invest' in Gold Jewelery ?

 

[anthonys36593]

@helenen True shock comes when you try to sell and recover your investment.

IMO, everyone is lowballing when you try to sell.

 

[helenen]

@anthonys36593

True shock comes when you try to sell and recover your investment.

This!

One can't understate the shock, especially when we have been conditioned to think "price goes up"

 

[abbkaz]

@helenen 2nd hand jewellery should make much more sense

 

[frances69]

@anthonys36593 Duh, that's how business work, they lowball while buying and highball when selling, it's up to you to negotiate
Go to your trusted local jeweller and buy only HUID jewellery with making charges less than 400 per gram ideally

 

[golfnut1913]

@helenen Anybody calling jewelry as investment are fooling themselves.

 

[helenen]

@golfnut1913 Perhaps not these guys: https://www.deccanherald.com/india/...ng-10-government-officials-in-da-case-2872333

 

[yuliza]

@helenen head reach money sulky axiomatic unite marry march oatmeal squeal

This post was mass deleted and anonymized with Redact

 

[puert0rican]

@golfnut1913 Not really but depend my grandma would never do any investment other than gold, she’ll buy rings every now and then since 30 years with local jewellery shop very small making charges and one day I saw that she is in a lot of profit not as high as equity , though she won’t sell it ever but just telling

 

[rasmus2]

@puert0rican When its time to sell that jewellery, you'll understand. Most old jewellery isn't 916, so the jewellery shops will deduct whatever price they deem fit. And on top of that, they'll deduct dirt weight, sweat weight, bullshit weight etc. Gold jewellery is just a big scam targeting gullible people.

 

[ttcusm]

@helenen gold coins and gold bars are good ?