Time to value your jewelry? The price of gold puts owners at risk of losing a small fortune
- The value of gold has increased by more than 100% in the past ten years
- Watches, engagement rings and gold chains could all have increased in value
- If you make a claim based on an old insurance valuation, you could suffer a loss
Jewelery owners could risk losing thousands of pounds to theft or damage if they do not have their assets revalued, data shows.
Many Britons could unknowingly be sitting on a gold mine, following a decade-long trend of growth in the value of the precious yellow metal.
And the value of engagement rings, watches and gold chains will all have risen in value over the past decade, with the value of some pieces rising by thousands of pounds, according to Admiral Home Insurance.
The insurer said the average price of a gold chain, for example, has risen to £2,631, up by a whopping £485, compared to £2,146 in 2018.
Current appraisals are important to ensure you receive an accurate payout when you make an insurance claim
The price of gold has risen by 112 percent in the past decade, according to Admiral, and will be worth £575 by 2023 alone, according to Admiral.
Gold reached an average of £2,401 per ounce in 2023, up from an average of £1,826 in 2022.
Many people may not realize the value of some of their possessions. Not only does this mean they are likely to incur a loss if they plan to cash in, but it could also put them at risk of paying thousands of dollars out of pocket if their items are stolen, lost or damaged.
“Watches and jewelery are often valuable, both financially and sentimentally, so it is very important that people make sure they are properly covered if the worst happens and they need to make a claim,” said Noel Summerfield, head of household at Admiral Insurance.
The price of gold has risen dramatically over the past ten years
What to pay attention to when revaluing
However, when it comes to insuring your valuables, it is important that you ensure that the valuation you use to purchase your policy is up to date.
If you make a claim based on an old appraisal, you may only recover part of the value of your assets due to rising prices.
‘The price of gold has been on the rise over the past decade, so if your jewelry and watches have been insured for a long time and you’ve never thought to check whether the value has increased, now is the time to make sure you have the level of coverage you need,” Summerfield added
‘In fact, we have even received claims from customers who have not updated the value of their items since the 1980s, with some jewelery having increased in value by more than 700 per cent.’
‘Providing up-to-date item values to your insurer is critical to ensuring that if you do need to make a claim, you are covered for the full value of your items.’
If you want to have your gold appraised, it’s best to shop around for the best price – don’t just rely on the first offer you receive.
The Institute of Registered Appraisers, regulated by the National Association of Jewellers, is a good starting point to find a reputable appraiser in your area. Alternatively, the Association of Independent Jewelry Appraisers is also a good place to start.