Gold Bars, Gold Jewellery, or Paper Gold: Which to Choose? Here's Your Guide to Smart Buying and Selling!

From the perspective of the ‘price-purity ratio’ and ‘bid-ask spread’, gold bars most closely track international gold prices, making them suitable for long-term value preservation. Jewellery gold, incorporating craftsmanship premiums, commands the highest prices but incurs significant discounting upon liquidation, rendering it more appropriate for adornment than investment. Paper gold, lacking physical delivery costs and offering flexible trading, requires bearing platform-related fees and is best suited for short-term speculation or convenient allocation. Below we dissect the pricing details of these three gold categories.

I. Gold Bars: The Most ‘Pure’ Pricing with Maximum Preservation of Value

Bullion pricing centres on the international gold price, with only minimal processing fees and brand premiums added. This makes it the category closest to gold's intrinsic value among the three. Taking common investment bullion bars as an example, their price typically exceeds the international gold price by 10-50 yuan per gram (varying by brand and specification). When liquidating, the discount rate is extremely low, generally only 5-20 yuan per gram below the current gold price. Regarding purchasing channels, gold bars are available through banks, designated institutions of the Shanghai Gold Exchange, and branded gold retailers. Banks offer guaranteed purity (typically Au9999) and standardised buying/selling procedures, making them the preferred channel for long-term value preservation. Note that larger bar specifications (e.g., 100g, 500g) incur lower unit processing fees, making them more suitable for substantial capital allocation.

II. Ornamental Gold: High Craftsmanship Premium, Low Investment Value

The price of jewellery comprises three components: ‘raw gold cost + craftsmanship fee + brand premium,’ with craftsmanship and brand premium being the primary drivers of inflated prices. Ordinary jewellery typically commands a premium of 80-200 yuan per gram above the international gold price. Complex craftsmanship (such as 3D hard gold or antique-style gold) commands even higher premiums, with some designs exceeding the international gold price by over 300 yuan per gram. When liquidating, decorative gold suffers substantial depreciation: dealers first deduct 10-20% for craftsmanship depreciation, then settle at a ‘buyback price’ below the current gold rate – equating to a ‘double loss’ for investors. Thus, decorative gold suits consumers prioritising aesthetic appeal; for pure value preservation, gold bars offer far superior value. When purchasing jewellery, opt for reputable gold retailers (such as Chow Tai Fook or Chow Sang Sang) to ensure purity and craftsmanship standards. For resale, prioritise brand-specific trade-in services to minimise depreciation losses.

III. Paper Gold: Zero Physical Costs, Flexible Trading with Risk Management Required.

Paper gold represents a ‘virtual gold’ investment product offered by banks or securities firms. Investors hold only ownership certificates without physical gold delivery, meaning prices largely track international gold rates without incurring physical costs like processing or storage fees. Its core advantages include flexible trading—supporting T+0 transactions, bidirectional operations (buying on both rises and falls)—and low entry thresholds, with investments starting from tens of pounds. However, the ‘hidden costs’ of paper gold warrant close attention: most banks levy a bid-ask spread of 0.5-1 yuan per gram, while some platforms also charge transaction commissions. Furthermore, paper gold does not generate interest, and its price volatility is highly correlated with international gold prices, making it significantly susceptible to geopolitical events, US dollar exchange rates, and other factors, resulting in higher risk than physical gold. Paper gold suits investors with some experience seeking short-term gains or convenient gold asset allocation. It is advisable to trade via regulated banking platforms to avoid compliance risks associated with niche providers.

For long-term value preservation (e.g., 3-5 years), prioritise bank-issued investment bars, which offer the lowest transaction costs and highest security. For jewellery purposes, select branded gold pieces according to budget, favouring trade-in when liquidating. For those seeking short-term exposure to gold price fluctuations and flexible trading, paper gold is the more suitable option, though strict position management and close attention to transaction costs are essential. Regardless of the gold product chosen, it is crucial to use legitimate channels to avoid falling into traps of insufficient purity or fraudulent transactions due to ‘low-price temptations’. Only then can the true goal of preserving and increasing value through gold investment be achieved.