I get asked this on the phone all the time. “If I buy 18k gold rather than silver, am I making an investment?” The honest answer fits in one sentence: no, not in the financial sense. A piece of jewellery is not a gold bar. But recycled 18k gold holds a value that silver and vermeil do not, and that value can be calculated. Here is the calculation, with no flattering rounding.

Investment or not: asking the question properly

An investment is an asset you buy in the hope of selling it for more. A gold bar fits that definition. A piece of jewellery does not.

The difference is not the metal. It is everything you pay for around the metal.

When you buy a gold bar, you pay for gold and a small premium. When you buy a ring, you pay for gold, a stone, a design, casting, polishing, stone setting, quality control, hallmarking, a box, a warranty and the work of a workshop. When you sell by weight, all of that disappears. Only the metal is left.

This is not a scam. It is the very nature of a manufactured object. A new car loses value the moment it leaves the dealership, and nobody is surprised. A piece of jewellery, at least, keeps a floor: its metal.

What the gold really represents in the price of a piece of jewellery

First thing to understand: 18k gold is not pure gold. Its fineness is 750 parts per thousand, meaning 75% fine gold and 25% other metals that give it hardness and colour. That is what the number 750 stamped on your jewellery tells you, and our article on the 750 hallmark explains how to read it.

Second thing: a ring weighs very little. A slim band set with a stone often weighs between two and five grams. A bracelet or a necklace weighs more, but is still light.

Third thing, and the most important: on a piece of fine jewellery, the gold accounts for a minority share of the selling price. Most of the price is the stone and the human work. On a set ring, the setting alone represents hours of bench work.

The consequence is mechanical. Even if the gold price rises, the share of your jewellery linked to that price remains small. A doubling of the gold price does not double the resale value of your ring.

What a gold buyer actually pays for your ring

Here is how it works, step by step.

Step 1. The buyer weighs the piece and checks the fineness. They count the weight of fine gold, which is 75% of the total weight for 18k.

Step 2. They apply the day's gold price to that weight of fine gold. This is the theoretical value of the metal.

Step 3. They deduct their margin and refining costs. Depending on the buyer, the price offered is well below the theoretical value. This is where most of the gap comes from, and it is why you should ask for several quotes.

Step 4. The stones. A standard gold buyer does not pay for stones. They buy metal destined for the melting pot. The stones are removed and usually treated as having no commercial value to them, whatever their nature.

The result: a ring bought for a thousand euros never fetches a thousand euros at a gold buyer's counter. It fetches a fraction of the weight of gold it contains.

There is another route, often a better one: rather than selling by weight, have the piece remodelled. The gold is melted down, the stones are reset, and the value of the metal stays in your hands instead of going to a third party.

French tax rules on selling gold jewellery

This section applies to France. If you are reading from another country, your local tax rules are different.

In France, the sale of precious items by a private individual is subject to a flat-rate tax levied on the sale price, not on the gain.

For precious metals, the flat-rate tax is 11%, plus 0.5% CRDS, and it applies from the very first euro.

For jewellery and works of art, the flat-rate tax is 6%, plus 0.5% CRDS, and it only applies above a sale price of €5,000. Below €5,000, the sale is exempt.

There is an option. If you can prove the date and price of purchase, you can ask to be taxed on the actual capital gain rather than on the sale price. This regime provides a full exemption after twenty-two years of ownership.

Two practical conclusions. Keep your invoices: without proof of purchase, the actual capital gain option is closed to you. And be aware that how the piece is bought back, as jewellery or as metal for melting, does not fall under the same regime. Get this clarified before you sign, and check the rates in force at the time of your sale.

What about lab-grown diamonds? Their resale value is close to zero

Let us say it plainly, even though we are the ones selling them.

The price of lab-grown diamonds has fallen sharply since 2020. That is excellent news when you buy: a beautiful stone now costs a fraction of what it cost five years ago. It is bad news when you sell: nobody will buy a second-hand stone from a private individual at an attractive price when the same stone, new and certified, costs little.

And there is no organised secondary market for these stones. No price list, no auctions, no structured buyback. A lab-grown diamond is bought to be worn, not to be resold.

Does that mean you should buy natural? No, for a simple reason: a natural diamond of an ordinary size does not resell at its purchase price either. The markdown on leaving the shop is steep, and a professional buys it back well below the price paid. The difference between the two is that the natural market keeps up the illusion of an investment, and the lab-grown market does not.

Our position is this: buy a piece of jewellery because you are going to wear it. If you are looking for an investment, buy a gold bar. It is more effective and far less pretty.

Gold bar, gold jewellery, vermeil, silver: the honest table

Item	Metal value	Resale	What it gives you
Gold bar or gold coin	Full	Organised market, public price	An investment, nothing more
Recycled 18k gold jewellery	Real but a minority share	By weight, at a discount	A piece that lasts and can be passed on
Vermeil jewellery	That of the silver; the gilding does not count	Next to nothing	The look of gold at a mid-range price
925 silver jewellery	Low	Next to nothing	The best entry price
Lab-grown diamond	No resale price	Close to zero	A beautiful stone at an accessible price

A word on vermeil, which is often misunderstood. Vermeil is 925 silver covered with a layer of gold. That layer wears away, and it weighs almost nothing: it adds no metal value. Our comparison of vermeil and gold plating explains what sets them apart.

When recycled 18k gold makes complete sense

None of this says you should give up on gold. It says you should buy it for the right reasons.

Because the colour does not wear off. On a solid gold piece, the colour is the metal itself, not a layer. A recycled 18k gold ring worn for twenty years stays the same colour as on the first day. Vermeil does not.

Because gold jewellery can be repaired indefinitely. A prong can be rebuilt, a band soldered back together, a ring resized. A workshop can give a tired piece a second life. With plated jewellery, the question does not even arise.

Because it can be passed on. It is the only one of the three options that you hand down. A recycled 18k gold ring passed on to a daughter or a niece is still a piece of jewellery, not a worn-out keepsake.

Because there is a floor. It is not a return, but it is not nothing. A gold piece is never worth zero. That is the fundamental difference with silver and vermeil, costed out in our comparison of silver, vermeil and recycled 18k gold.

And if you want to start small, a lightweight piece does the job very well.

Key takeaways

A recycled 18k gold piece is not an investment. Selling it by weight covers only part of its purchase price, and the stone does not count in that calculation.

What it is, on the other hand: the only metal in the range whose colour does not wear off, that can be repaired indefinitely, that can be passed on, and that keeps a floor value. Those are four good reasons to choose it. Financial return is not one of them, and we would rather say so.

Browse our bracelets and our necklaces, or tell us about a bespoke project. We also remodel family gold.

FAQ

Is 18k gold a good investment?

As a bar or a coin, gold is a recognised investment. As jewellery, it is not. You pay for the stone, the design and the workshop's work, and none of these can be resold. Buy jewellery to wear it, not to speculate.

How much is an 18k gold piece worth when you sell it?

Its buyback value is calculated on its weight of fine gold, which is 75% of its total weight. The buyer applies the day's gold price, then deducts their margin and refining costs. Stones are generally not paid for. Always ask for several quotes, as prices vary widely between buyers.

What tax do you pay in France when you sell gold jewellery?

In France, the flat-rate tax is 6% plus 0.5% CRDS for jewellery, and it only applies above a sale price of €5,000. For precious metals, it is 11% plus 0.5% CRDS from the very first euro. With proof of purchase, you can opt to be taxed on the actual capital gain, which is exempt after twenty-two years of ownership. These are French rules and should be checked at the time of sale.

Can you resell a lab-grown diamond?

Very poorly. There is no organised secondary market, and the price of new stones has fallen sharply since 2020, which crushes second-hand value. It is the flip side of good news: the same stone now costs far less to buy.

Does a natural diamond resell better?

Slightly better for exceptional stones, not really for ordinary sizes. A professional buys back well below the price paid in the shop. The main difference with lab-grown is that the natural market keeps up the idea of an investment.

Why choose recycled 18k gold rather than vermeil?

For longevity. On solid gold, the colour is the metal: it does not wear off. On vermeil, the gilding is a layer that eventually comes off, especially on a ring that is constantly rubbing. If the piece is worn every day for years, recycled 18k gold works out cheaper over time.

Should you keep the invoice for a gold piece?

Yes, absolutely. You need it for insurance in case of theft, it proves the date and price of purchase if you ever sell, and it makes any appraisal easier. Keep it with the stone's certificate.

Fiona