Most westerners who invest in gold do so by purchasing coins or bars. Easterners on the otherhand prefer to invest in 24kt gold jewelry. Why? Because jewelry can be held privately, as well as transported across national borders without raising eyebrows. Coins and bars, on the otherhand, are never completely out of the reach of long arm of the government.
The following is an interesting exerpt I ran across that talks to this point:
(Source)The intentions of the jewelry buyer and the investment buyer may be different. Investment buyers hold gold as a store of value, while jewelry buyers may use it for ornamental purposes. But the gold is still held and most jewelry can and does eventually return to the market as melt. And furthermore, in some parts of the world a lot of jewelry is purchased as a store of value – a wearable investment. In the West investors prefer to hold gold as bars or coins while in Asia and the Near East, some jewelry purchases are investments rather than ornamental. Bullion jewelry has a low workmanship value-added compared to ornamental jewelry which sells for substantially more than its gold melt value.
Which should you invest in? Why not both?
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