Gold is one of the highly favored precious metals by jewelers. This is especially when making expensive jewelry and ornaments
Gold chains especially are a timeless piece of jewelry that goes with almost any outfit paired with it. It’s difficult to resist the lustrous shine it has until you think of the cost you’ll have to pay.
Real gold chains are quite expensive, so it’s normal to ask yourself whether buying is worth it.
We’re here to help you decide. Here we will discuss whether gold chains are a good investment, their real cost, and their pros and cons.
Is Buying a Gold Chain a Good Investment?
From a durability point of view, gold chains are a good investment because they do not depreciate over time or with inflation.
For this reason, Central Banks around the world categorize gold as a Class A type of investment. Gold’s value is however affected by the demand and availability in the market. Keep in mind that buying an expensive gold chain doesn’t make it valuable. The value is in the quality of the gold and not the price.
Therefore, when buying a gold chain as an investment you need to be involved every step of the way. Examine the quality of the gold and have it assessed by a trusted expert or jeweler. Also, when thinking of buying a gold chain for investment, here are three golden rules to consider first:
1.Ensure it’s visually appealing.
This means that before considering buying a gold chain for investment, make sure it’s a piece you wouldn’t mind wearing.
That way you can be sure you’ll enjoy having it.
In a worst-case scenario where you’re unable to sell it off later, at least you’ll enjoy keeping it.
2.Gauge the value of the design vs the material.
At times the price of a gold chain could go beyond the price of the gold used to make it. The value could also depend on the design of the chain as well as the quality of gems that may be included in it.
As a result, it’s best to get a proper appraisal from a trusted jeweler. Find out the purity of the gold as well as the value attached to the design.
Also, consider the buyback terms of the dealer you buy the chain from. If that’s not possible, you can use sites like Goldcalc.com or Meltvalue.com to determine the scrap value of your chain.
3.Consider how volatile gold chain prices can be.
As a precious metal, the value of gold chains can fluctuate randomly depending on their availability and demand.
You may have to pay a premium price for purchasing a pure gold chain.
So, it’s worth it if it’s a chain you can wear, at least until the value goes up and you can sell it for more.
How much should a real gold chain cost?
When considering the cost of a real gold chain, there are a lot of factors to keep in mind.
The cost of the gold chain, however, includes the melting price of the gold content as well as the cost of other metals or stones included in the chain. The cost of labor and jeweler’s profit also have to been factored in. These factors make it difficult to predict, so there is no definite rule of thumb to help you determine the exact cost of a real gold chain.
As a guide, however, you can use the rule of double to help you know what mark-up to expect. That means that you should expect to pay $1,000 if the cost of the chain is $500.
Keep in mind, however, that the cost of machine-made chains includes the cost of gold, alloyed metals, and labor.
For hand-made jewelry, the cost could be higher because there more steps involved in the making process. The same principle goes for customed made chains and other jewelry.
Pros and cons of investing in gold chain
While it’s true that gold chains are a good investment, there are benefits and disadvantages to it. The following are some of the significant pros and cons of investing in a gold chain:
Pros
- It’s durable, meaning it doesn’t deteriorate or rust over time.
- You’re able to wear it as well as sell it for a profit at the right time.
- You can save it for a rainy day and liquidate it for cash.
- It has numerous uses including in the manufacture of electronics.
- It’s never outdated in the fashion world.
- Its value isn’t depreciated by inflation.
Cons
- Owning a gold chain brings about the need and cost for security and insurance.
- A gold chain will only pay you when you sell it, unlike other investments that offer dividends throughout.
- An increase in the value of gold only happens with the devaluing of the dollar.
- A gold chain could lose its value after a bubble effect where investors panic and gold become overpriced.
What should I look for when buying a gold chain? (Tips)
Once you have made up your mind to buy a gold chain, there’s a lot you need to consider before making the purchase. To ensure that you buy the right gold chain for you, here are a few tips you can use:
1.Know what type of gold chains there are.
Gold plated chains are the cheapest but the plating fades over time hence not durable.
The hollow gold chain is also cheaper and lighter compared to the solid one.
It is, however, easier to break or dent a hollow gold chain, and repairing it can be impossible.
So, your safest bet would be to buy a solid gold chain.
2.Choose the karat for your gold chain.
Low karat gold is considered more durable than high karat gold but more problematic for those with metal sensitivity.
This is because low karat gold may have nickel content that could cause an allergic reaction. The suitable karat to pick for your gold chain therefore is 14-18k.
They are more hypoallergenic and have more value and durability.
2.Decide what type of link you want.
The type of link you choose will determine how easily they kink or break. Omega and round snake chains are an example of links that easily twist and break.
Your best choices, therefore, are the wheat and box chain links.
They are fairly flexible and sturdy enough in case you decide to add a charm or pendant.
Other good choices are the curb, anchor, rope, mariner, and Figaro chain links.
3.Check the quality of the clasp.
Most chains have a ring clasp since it’s the cheapest kind. It however breaks easily and is not durable.
The best choice of clasp for your gold chain is a lobster clasp.
It’s durable and doesn’t open easily regardless of how hard the chain is pulled.
4.Know how to value a chain.
You can use a gold jewelry calculator to calculate the exact gold value of the chain. Also, keep in mind that the value of a chain is its weight and not its length or size.
5.Find a trusted place to buy the chain from.
Online platforms like Amazon are the best places to buy real gold chains.
Jewelry stores especially big ones specialize in diamonds more than gold therefore have limited choices.
Small jewelry stores could even rip you off if you’re not educated about gold chains. Moreover, the prices are cheaper online.
Does Amazon sell real gold chains?
Yes, Amazon does sell real gold chains. It is one of the most trusted platforms when buying gold jewelry.
This is because Amazon has put up security measures that do not allow selling knock-off, replica, or vintage jewelry. The jewelry has to be authentic and brand new.
Additionally, the description of the product is always provided on Amazon, so you know exactly what you’re getting.
Conclusion
Gold chains are a great decorative piece that you can always choose to sell on a rainy day when you need cash.
Their value is not affected by inflation but by their demand and availability.
Before investing or buying a gold chain ensure you’ve done your due diligence and considered all your options.
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Tiger is a fashion&jewelry lover. He is also a fashion jewelry manufacturer that help thousands of small business to grow and also do business with some big fashion jewelry brands. He is a truly metal expert and he will share some information you are looking for.