The value of jewellery is increasing, are you adequately insured?

Recent trends and market fluctuations have caused the value of jewellery and some watches to increase significantly. This shift in the jewellery market has prompted insurance companies to urge customers to ensure sufficient protection for their precious pieces. With Christmas, Valentine’s Day and Mother’s Day having not too long gone by and the influx of special purchases that we know come with these occasions now is a good time for people to review their protection.

The Rise in Jewellery Theft

In recent years, there has been a noticeable increase in reports of jewellery theft incidents, leaving victims emotionally and financially devastated. Aviva, one of the UK’s leading insurance companies, warned of a 43% increase in high-end jewellery theft* and has urged customers to take the necessary steps to protect themselves against such unfortunate events. One of the key factors contributing to the impact of these thefts is underinsurance, where individuals fail to provide insurers with an accurate value for their jewellery or watch or fail to update their insurance policy to reflect the true worth of their pieces.

We recommend individuals have their jewellery appraised by a professional and maintain proper documentation, including photographs, descriptions, and purchase receipts wherever possible. By having this information readily available, you can provide the necessary evidence to support a claim you may need to make should your item be damaged, lost or stolen, which can also be very helpful in expediting the claims process.

Underinsurance of Jewellery

The value of jewellery and watches has significantly increased in recent years, with gold seeing a 112% increase in value over the last 10 years alone**, meaning people may be at risk of underinsurance if they haven’t kept their insurance up to date with accurate valuations. By updating appraisals to reflect current market values, individuals can ensure that their jewellery is adequately protected and not underinsured, providing peace of mind in the event of loss, theft, or damage. Furthermore, this significant price increase emphasises the importance of protecting and insuring high-value jewellery from a monetary perspective.

Many individuals underestimate the worth of their precious pieces when acquiring insurance cover in the first instance, while many others fail to update their valuations over a long period of time; there are numerous factors that the value of jewellery over time, such as inflation, market trends and escalating prices of valuable metals so it is always important to stay on top of regular valuations.

Data shows a one-ounce gold chain has almost doubled in value from £1,150 in 2013 to £2,240 in 2023 – an increase of 95 per cent***. If someone were to have insured their gold chain all those years ago, their policy would need to be updated with its current valuation for them to be fully covered for the amount the chain is worth should it be damaged, lost or stolen. Without updating their cover, that person could risk their settlement for the gold chain being substantially lower than what they ought to have received had they insured it accurately.

Understanding the Growing Value of Jewellery

To fully understand the importance of protecting high-value jewellery, it is essential to comprehend the current market scenario and the factors driving the increase in value; jewellery owners can then make informed decisions regarding insurance, maintenance, and investment opportunities for their beloved pieces.

The Current Market Scenario

As we’ve touched on above, the jewellery market is influenced by several factors, including the price of gold, consumer preferences, and evolving fashion trends. Global events, economic conditions, and changes in consumer behaviour all contribute to the dynamic nature of the jewellery market. For example, during times of economic uncertainty, the value of gold tends to increase as individuals seek safe investments. Similarly, cultural shifts and the demand for sustainable and ethical jewellery can cause fluctuations in value.

Jewellery auctions and online platforms have made it easier to track the value of jewellery, providing valuable insights for both buyers and sellers. These platforms showcase the demand and value of pieces, allowing individuals to stay updated on market trends.

Types of Jewellery Experiencing Value Increase

Here, we look at how some materials and types of jewellery are changing in value.

Gold Jewellery

As discussed, gold jewellery in particular has seen a significant rise in value.. One popular variation of gold that has gained traction in recent years is rose gold; this elegant and subtle hue appeals to the changing tastes of jewellery enthusiasts, contributing to the value increase of rose gold jewellery specifically.

Formed by blending pure gold with copper alloys, rose gold acquires its characteristic blush complexion, creating a warm and romantic aesthetic. This distinct coloration adds a touch of elegance and sophistication to jewellery pieces, making them stand out amidst more conventional options.

Diamond Jewellery

Diamond jewellery has long been associated with luxury and timeless elegance. Custom-designed diamond jewellery holds high value due to the unique craftsmanship and attention to detail often applied. White gold settings with sparkling diamonds offer a modern twist to classic styles, making them increasingly sought after.

Platinum Jewellery

Platinum jewellery, with its rarity and hypoallergenic properties, has experienced a steady increase in value. Modern designs in platinum jewellery cater to the discerning tastes of luxury-seeking consumers, further driving the value of these pieces. The versatility and longevity of platinum make it an attractive choice for those seeking high-end jewellery with a growing value.

Antique Jewellery

Antique jewellery, with its historical value and unique craftsmanship, holds a special place in the jewellery market with vintage pieces, adorned with intricate details and rare gemstones, having the potential to command higher values, again dependent on materials, condition and so on. As the appreciation for the historical significance of these pieces grows, so can the value associated with them, meaning collecting antique jewellery can be a rewarding passion.

Protecting Your High-Value Jewellery

Protecting high-value jewellery requires a combination of preventive measures and proper insurance cover. By adopting safe storage practices, you can help to prevent the loss or theft of high-value jewellery. Read our blog which outlines some of the different benefits that having a safe in your home can bring.

Here are some key considerations when it comes to insuring jewellery:

Look to insure your jewellery for its current appraised replacement value to ensure adequate protection and update your policy to reflect current market values to continue ensuring that the value of your jewellery is correctly covered.
Review your insurance policy to ensure it covers scenarios such as theft, accidental damage, and loss of valuable jewellery, and if you’re a traveller, consider obtaining cover on a worldwide basis Seek the advice of an insurance broker who specialises in high-value insurance to obtain cover that best suits your needs and offers comprehensive cover so that you can have peace of mind around your protection.

How McClarrons Affinity can help

With gold prices soaring and theft concerns increasing, safeguarding your high-value jewellery is crucial. By considering insurance options and adopting safe storage practices, you can mitigate risks and enjoy your valuable jewellery pieces with peace of mind.

If you would like to discuss any element of your jewellery insurance, valuations, security or safes, or would like a complimentary review of any of your other insurances, please do not hesitate to get in touch with our specialist Art & Private Client team at affinity@mcclarroninsurance.com or on 01653 602634.