How Do You Spend Gold

Spending gold has gotten complicated with all the investment options, bullion dealers, and crypto-backed gold products flying around. As someone who’s owned physical gold in various forms for years — coins, bars, and yes, even a gold-leaf dessert once — I learned everything there is to know about the practical ways people actually use their gold. Today, I will share it all with you.

Investment and Wealth Preservation

This is where most people start, and for good reason. Gold has held its value through recessions, wars, and currency collapses that wiped out paper money. I started buying gold American Eagles during the 2008 financial crisis because I didn’t trust what was happening with the banks. Turned out to be a decent call.

You’ve got two main paths here. Physical gold — bullion coins and bars you can hold in your hand — is the traditional approach. I keep mine in a safe deposit box, which costs about $50 a year. The alternative is gold ETFs and mutual funds, which track gold prices without requiring you to store anything. They trade like stocks and are more liquid, but you never actually touch the metal. Different strokes for different investors.

Jewelry and Art

My wife’s engagement ring is gold, and so is the watch my grandfather left me. Gold jewelry is probably the most common way ordinary people “spend” gold without thinking of it as an investment. The markup on retail jewelry is steep — you’re paying for craftsmanship, brand, and retail overhead — so jewelry is a lousy pure investment. But it serves a dual purpose: you wear it and enjoy it while it retains some intrinsic value.

Gold art pieces are a niche market, but they exist. I’ve seen gold-leaf paintings and sculptures at galleries that commanded serious prices. Whether the art itself appreciates depends on the artist and market, but the gold content provides a floor value.

Technology and Industry

Here’s something most people don’t think about: gold is in your phone right now. The connectors on circuit boards use thin layers of gold because it’s an excellent conductor and doesn’t corrode. Medical devices, aerospace components, satellite parts — gold shows up in all of them. You’re indirectly “spending” gold every time you buy electronics, you just don’t see it.

Collecting and Numismatics

Probably should have led with this section, honestly, given the audience reading this. Gold coins are where the worlds of investing and collecting overlap. A common gold bullion coin is worth roughly its weight in gold. But a rare gold coin — say, an 1856 Flying Eagle pattern or a high-grade Saint-Gaudens Double Eagle — can be worth multiples of its gold content because collectors will pay premiums for rarity and historical significance.

I’ve bought gold coins at auction that were worth $2,000 in gold content but sold for $8,000 because of their numismatic value. That premium is real, but it also means you need to know what you’re buying. Auctions and reputable dealers are the way to go here.

Luxury Goods

Gold shows up in high-end watches (Rolex Daytonas, Patek Philippes), fountain pens, and even some clothing. These items target buyers who want something exclusive and durable. A gold Rolex isn’t the most efficient way to own gold from a pure investment standpoint, but it holds value better than most luxury goods because of the metal content plus the brand cachet.

Health and Medicine

Gold nanoparticles are being used in cutting-edge cancer research. The particles can be engineered to target specific cells, which makes them promising for drug delivery. Gold compounds have also been used in treatments for rheumatoid arthritis for decades. It’s a small market compared to jewelry or bullion, but it’s a meaningful one.

Gifts and Cultural Traditions

In many cultures — Indian, Chinese, Middle Eastern — gold gifts are standard at weddings and major celebrations. I attended a wedding in New Delhi once where the bride received gold jewelry from every branch of both families. The total value was staggering. This isn’t just tradition for tradition’s sake; it’s a way of transferring wealth to the next generation in a form that’s universally recognized.

Charity and Philanthropy

Donating gold to charitable organizations is more common than people realize. Some charities accept physical gold, liquidate it, and use the proceeds. It can have tax advantages too, depending on your jurisdiction. I donated a few gold coins to a university endowment fund years ago and got a fair market value deduction.

Gold-Backed Currency and Loans

While no major currency is on the gold standard anymore, some countries hold massive gold reserves to backstop their economies. Central banks in China, Russia, and India have been aggressively buying gold for years. On a personal level, you can use gold as collateral for loans — some banks and specialty lenders will accept gold bullion, often at lower interest rates than unsecured loans.

Gold Mining Investments

Buying shares in gold mining companies is another way to get exposure to gold prices without buying the metal itself. Mining stocks can outperform gold in a rising market because of operating leverage, but they also carry company-specific risks that bullion doesn’t. I’ve held mining ETFs as a supplement to physical gold, and the returns have been mixed — some years great, some years painful.

The Odd Stuff

Gold leaf on food is a real thing in high-end restaurants. I tried a gold-flaked dessert at a restaurant in Dubai, and I’ll be honest — it tasted like regular dessert. The gold is biologically inert, so it passes through you without any nutritional effect. It’s pure showmanship. Gold also appears in luxury skincare products, though the evidence for anti-aging benefits is thin at best.

That’s what makes gold endearing to us collectors and investors — it’s one of the few assets that works as money, art, technology, and status symbol all at once. However you choose to spend yours, just make sure you understand what you’re getting into.