Thursday 23 August 2012

Why Buy Gold Jewellery?

A staggering U S dollars 160 billion of gold jewellery is bought last year. India alone accounts for a large chunk of the global sale in gold jewellery. What mesmerises people to buy gold jewellery? Aesthetic value apart, there are several features that make gold jewellery an integrated part of the human culture. Here is a canvas where I paint why people buy gold jewellery.

Mystique of jewellery lies in its design is the chorus of many jewellers who manufacture most of the branded or designer gold pieces. It is true that, in the value addition ladder branded jewellery finds top notch followed by designer products. But even the mass market jewellery is embellished with design and decoration. So like in the adage beauty lies in the eyes of beholder gold jewellery dazzles buyers by affording aesthetic value that perhaps cannot be valued adequately.

One way of differentiating the value and reason for buying gold jewellery lies in twin aspects of owning and wearing. When it comes to the question of owning people tend to give emphasis for the monetary value of the gold jewellery. By the same token in dealing with the matter of wearing it is the cultural value that matters most.

Jewellery is owned as assets need not be declared to authorities like Inland Revenue provided that these are for personal use; no taxes or levies are loaded on possessing jewellery. Neither any tax is charged when it passes hand to hand by way of sale or gift. In most countries rich families pass their gold jewellery holdings to their progeny without any inheritance tax or estate duties. Although initial sale of gold jewellery is properly receipted, subsequent transfers from one to another does not require such documentation. Moreover, no trails are left when gold jewellery changes hands. Even travelling from one country to personal jewellery is not subjected to custom duties and tariffs if the quantum is modest and does not imply any commercial purposes.

Owning jewellery is concomitant to finalizing marriage proceedings in countries such as India where the bridegroom or his family insist a specific quantum of gold jewellery as part of dowry. In most part of Asia gold jewellery is associated as a source for emergency funding. It can be re-sold at gold value to jewellers for scrapping or in exchange for newer jewellery products. Booming pawning industry in South Asia lends credence to yet another safety value; under this scheme gold jewellery is used to raise loans and advances. In other parts of the globe gold jewellery continues its functions of cash and liquidity. It is medium of exchange and store of value, both these aspects have built around gold jewellery an aura of solid investment value. More to it: as the price of gold continues to soar, the value of investment grows year after year.

If part of the gold jewellery is owned and held in safety lockers other part is worn and exhibited. Wearing gold jewellery is part cultural and part prestigious. A lady adorned with assemblage of gold jewellery is quintessence of fortune. Her presence alludes beauty, aesthetics and more than anything someone adorable. In the eyes of men she means many things from goddess of love to goddess of fortune. Cultures do not stop with bedecking jewellery on humans alone. In India, for example deities are ornamented with mounds and mounds of gold jewellery. More jewellery a deity wears it is believed more miraculous the powers of the deity would be. In Sri Lanka we witness another twist to the story. Caparisoned elephants with beads of jewellery parade in fascinating style to the accompaniment of undulating music. All said, wearing gold jewellery may be the only medium we can traverse the kingdoms of animal, humans and the gods.

Muthu Ashraff

Business Adviser

Mobile: +94 777 265677

E-mail: cosmicgems@gmail.com

Web: http://www.cosmicgemslanka.com

Blog: http://cosmicgemslanka.com/blog/

 

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