Why gold still glitters
There’s never a bad time to invest in gold as its value continues to appreciate despite market fluctuations. Earlier this week, the price of gold rose by 0.4 percent as Iran-Israel tensions escalated. According to a report from Reuters, spot gold was up at $3,382 an ounce or $119.5 per gram. Spot gold represents the real-time market price for buying or selling gold.
For Anita Bustamante (not her real name), buying gold is something she has been doing for decades. Her adult son has also taken up his mother’s interest, and purchases pieces of his own.
Bustamante said she only buys from jewelry shops where she either knows the owner or which are recommended to her by trusted friends. “I always make sure what I buy is Saudi gold rather than Chinese gold or Bangkok gold.”
Asked why that is so, her only reply was that Saudi gold is “different,” adding that she doesn’t follow any schedule when she wants to add to her collection. “When I have extra money, that’s when I buy. I set the pieces aside, put them in a safe so if I need to pay my mortgage or quickly invest in something, I can easily dip into my cache.”
The arbitrary, almost haphazard way she treats the commodity is not uncommon among Filipinos who are aware of the metal’s material value and the fact that its price can only increase.
Jewelry shop owner Frank Peña distilled gold’s importance. “It’s like money. If you have gold—wherever you are—you can convert it immediately into cash,” he said.
The owner of Happy Gold Jewelry has been in the business of buying and selling gold for 16 years—12 years as an employee and four as proprietor. Diamonds might be a girl’s best friend, but they are much harder to dispose of should the need arise. Even diamond-encrusted jewelry is less favored over plain gold.
“You can’t easily sell diamonds because there are already many lab-grown diamonds. Gold, even if it’s just a few pieces or amounts to a few grams, increases in value,” Peña said.
Like Bustamante, he said there’s no wrong time to buy gold. “If you look at the market, when the price of gold goes down, that’s the best time to buy. When it goes up, it’s still a good time to buy,” he said.
Buying, storing tips
Peña shared a few tips for those considering investing in gold, starting with choosing pure gold over the ones with stones. “You can sell the jewel-encrusted ones to people you know but you might have a hard time pawning it. The stone has no value unless the owner can prove its authenticity.”
He also said that the quality of the gold is also important, hence the need to buy only from trusted sources. He said neophytes should err on the side of caution “because there are greedy vendors who claim the gold they’re selling is 18K but when you have it appraised, it turns out to be 14K or even 10K.”
He added that while most 24K gold is reddish in color, with the lower quality ones less red, one still can’t be entirely sure unless they have the gold properly appraised.
“You should always keep your gold jewelry clean and dry in a box, but not a plastic one because it can get hot. Keeping it in a safety deposit box in a bank is also an option because you’re sure it’s secure,” Peña said.
“People still say that land or property is a good investment, but if you’re in a rush or need money ASAP, it’s really gold.”
In the many years that Bustamante has been collecting gold, she has amassed quite a stash. She has friends who do the same and who bring them out for big occasions.
“Me? I just keep my gold in the vault. When I go out, I only wear my ‘fancy’ pieces,” she said.
