April 21, 2025 | 06:17 pm
TEMPO.CO, Jakarta - Gold bullion and jewelry are both valuable assets, but they differ significantly in form, purity, and profitability. Understanding these distinctions is key for investors looking to maximize returns from precious metals.
Gold is universally recognized as one of the most stable investment instruments, with a tendency to appreciate in value over the long term. While gold prices can fluctuate daily, they generally trend upward over a period of five to ten years. This makes gold one of the public’s favorite investment assets.
But how do bullion and jewelry gold differ in value? According to Pegadaian, the two types of gold differ in several critical aspects:
1. Shapes
Bullion gold comes in bars, plates, or chips—designed primarily for investment. In Indonesia, popular brands include Antam and UBS. Jewelry gold takes the form of wearable items like rings, necklaces, and bracelets, offering both aesthetic and functional appeal.
2. Production Cost
One important aspect of gold investment is production cost. Bullion has relatively low manufacturing costs since it only requires basic casting. Jewelry gold, by contrast, demands more elaborate design and workmanship—especially for intricate pieces—resulting in significantly higher production costs.
3. Purity Levels
Purity is another key differentiator. Bullion typically has a purity level of up to 99.99 percent, meaning it is nearly free of other metals. Jewelry gold usually contains less than 70 percent gold, mixed with other metals to increase durability so it can withstand daily wear.
4. Resale (Buyback) Ease
Bullion is generally easier to resell, especially when accompanied by an authenticity certificate. It can be sold back at gold shops or to the original seller. Jewelry gold can also be resold, but typically requires supporting documents specifying the model, gold content, and weight.
5. Purchase and Resale Locations
In Indonesia, certified bullion can be purchased from Antam, Pegadaian, or trusted retailers, and resold at those same places. Buybacks for certified bullion can usually be conducted at the original place of purchase.
Per DataIndonesia, is widely available at gold shops across Indonesia, with resales usually handled by the original seller, bringing along documentation that details the jewelry's design, weight, and gold content.
So, Which Yields Better Returns?
Both forms offer advantages, but bullion is generally more favorable for long-term investment. Bullion like ANTAM LM products have 999.9 purity and are internationally certified by the London Bullion Market Association (LBMA). They also use CertiCard technology to verify authenticity, making them secure and globally recognized.
Jewelry gold, while appealing, often suffers from lower resale value due to alloy content and non-refundable making charges—typically 15 to 20 percent of the original price. During resale, only the pure gold is calculated, reducing potential returns.
In summary, while jewelry serves as both ornament and asset, bullion is a more reliable choice for those prioritizing investment returns.
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