Wednesday , 22 March 2017


Give Your Valentine Some Physical Gold – Instead of Jewelry (or whatever) – For Feb. 14th. Here’s Why

…They say you can’t put a price on love, but at this time of year many have acrowne-gold-silver-bullion_l darn good go at it. It’s February which means Valentine’s Day is here and…many don’t know what to buy the person they love. [We do! Read on!]

The comments above and below are excerpts from an article by Mark O’Byrne (GoldCore.com) which has been edited ([ ]) and abridged (…) to provide a fast & easy read.

A whopping 80% of Americans who are dating, engaged, or married celebrate Valentine’s Day, according to time.com and like (I suspect) their European counterparts, they go all out when it comes to celebrating.

According to the U.S. National Retail Federation, spending this Valentine’s is estimated to fall this year, estimated to be down to $18.2 billion from $19.7 billion. 2016 was a 10-year high, whilst this year is expected to be a 3-year low…[which] isn’t so surprising when you look at the climb in prices, year on year. ([Incidentally,] the average…[spent] on Valentines in the United States in 2016 was $196 by men and $100 by women.)

valentines-gold

If you want to see a real example of inflation, look no further than the By My Valentine Index created by bankrate.com. It shows that this year the cost of buying a basket of Valentine’s gifts will cost you $580.98. The price has climbed significantly from the 2016 Index of $512.02 so it is not surprising that less of us are spending this year, but a three year low is quite a drop. So what happened? Are we not feeling the love, or are the harsh facts of reality setting in?

Times are tough both politically and financially and lovers are perhaps realising there’s no money to waste and instead things of real meaning and value should be bought – like unforgettable holidays, precious hours with loved ones and beautiful memories.

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What if you’re reading this and thinking that you’re way ahead of us and already planning on buying precious metals for your loved one and have a nice ring or necklace in mind. To that I would say not so fast, jewellery, or jewelry for our American friends, is not the answer here.

Fundivo.com estimates that $19.7 billion was spent by Americans on Valentine’s Day last year, $4.5 billion of this was on jewellery, the most spend in any category…

valentines-day-gold

You may be thinking that compared to other items in the Valentine’s basket, jewellery is a win-win. Not only will your loved one be delighted but you will also have made a wise-investment…[but,] as much as it breaks my heart to write this…jewellery is actually not a great investment. I would argue that you would be far better investing your money into physical gold than a trinket that happens to be made from it.

My reasons for this are three-fold:

  1. demand for gold jewellery is declining,
  2. the jewellery industry is under threat and, perhaps most importantly,
  3. the resale value of jewellery is always appalling…

We talk about gold as a form of insurance. During times of inflation, and especially hyperinflation, you will be looking for the financial insurance to protect your wealth. In both economic and political times of difficulty, gold is the best form of financial defence. Making an investment in jewellery is a false economy given you won’t see a financial return and there is no protection from economic dislocations as it is not liquid and there is no liquid market to sell jewellery at a fair and transparent market price.

The price we put on jewellery is not just based on the original price that we paid for it, but also the sentimental price. This is unfortunately not appreciated by the buyer – should you ever come to resell it – and, let’s be honest, you are going to be far more willing to sell your gold coins and bars than the engagement ring that is valuable only to you and your family.

…Unlike other components of jewellery, gold has remained a safe haven for thousands of years. It has repeatedly shown its value and worth through countless financial and geopolitical crises.

What better expression of love than to give actual gold – something that has stood the test of time, weathered all problems and continues to be desired around the world?…When it comes to making the decision of a life time we argue your wealth is better placed in something simple and time-tested such as a bar or coin of pure gold…

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