SITTING ON A GOLD MINE: Brits urged to check value of jewellery & watches as the price of gold increases by 112%

SITTING ON A GOLD MINE: Brits urged to check value of jewellery & watches as the price of gold increases by 112%
 

 - With the price of gold increasing to near world record highs, up 112% in a decade, Admiral Home Insurance urges Brits they could be at risk of losing thousands if they don’t check their cover -

• Gold has continued to rise in value to nearly record levels, increasing by 112% compared to 10 years ago
• The value of gold jewellery has risen by over £500 in just ONE YEAR
• Gold chains are now worth £2,631 on average
• Admiral warns Brits to check they have up-to-date valuations, to make sure their jewellery is fully covered, in case it is stolen or damaged

Admiral Home Insurance is urging Brits to check their cover for gold jewellery and watches, as new data reveals that the value of gold has almost reached a world record high, which means they could be at risk of being underinsured.

As the value of gold has increased by 112% in a decade, treasured items like engagement rings, gold chains and luxury watches will have increased in value, potentially by thousands of pounds.

In 2023, the value of gold jewellery increased by over £500 when compared to 20222. In addition, Admiral data shows that gold chains could be valued at an average of £2,631, compared to £2,146 in 20183, a hefty increase of £485 in just five years.

Admiral is warning Brits to check the value of their gold items and ensure they have provided their insurer with the correct valuation for their insurance policy. If the worst was to happen due to theft, damage or loss and the item was undervalued, it would mean that the insurer would be unable to pay out the item’s full value.

Noel Summerfield, head of household at Admiral Insurance, says:

“Watches and jewellery are often valuable, both financially and sentimentally, so it’s really important that people make sure they are properly covered should the worst happen, and they need to make a claim.

“The price of gold has been on an upward trajectory for the last 10 years, so if your jewellery and watches have been insured for a long time and you’ve never thought to check if the value has gone up, now is the time to make sure you’ve got the level of cover that you need.

“In fact, we’ve even received claims from customers who haven’t updated the value of their items since the 1980s, with some pieces of jewellery increasing in value by over 700%. Providing up-to-date item values to your insurer is vital for making sure that if you do have to make a claim, you will be covered for the full value of your items.”

Expert advice to make sure valuable jewellery is properly covered:

• Update valuations – It’s important to make sure you know how much your gold is worth, as it can change over time. The best way to do this is with a valuation. Valuation services are offered by most high-street jewellers and specialist providers such as The Guild of Valuers & Jewellers. If there are any changes to an item’s value, you can share an updated valuation document with your insurer, and amend your cover if needed.
• Keep all receipts – Where possible, make sure you keep any receipts and documentation relating to your items after purchase. If the item is a gift, include the gift receipt to allow the recipient to keep track of the item’s value.
• Create an inventory – It’s important that you keep an updated inventory of your gold items in the event any are lost, damaged or stolen. An inventory should include good-quality photographs which are stored somewhere safe, such as online on the Cloud.
• Check your policy – With Admiral Home Insurance, you will need to declare any jewellery as a ‘specified item’ if it’s worth more than £1,000. If your jewellery is worth £1,000 or less, then it will be automatically covered in the home, if you have contents cover. To be covered away from your home you’d need personal possessions cover. If you only have buildings insurance and don’t have contents cover, then you might want to consider taking out a contents policy. Check the details you have with your insurer to be clear on what’s covered.
• Store your items safely – Make sure your items are stored safely when they’re not being worn, such as in a lockable box.

Find out more about gold jewellery insurance and cover for your jewellery and engagement ring.