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The Increasing Value of Jewellery
28th January 2013

Jewellery can not only be a delight to wear, it can also be a wise investment depending on the provenance, rarity, quality, style and period chosen. For example, art deco pieces from 1920 to 1935 are currently popular and those made by master jewellers such as Cartier and Van Cleef & Arpels are highly collectible.

Yet over the past two years, many items of jewellery have risen in value for more fundamental reasons. As a result of recent economic uncertainty, investors have been opting to purchase gold, leading to a dramatic increase in its value. In January 2000 the value of an ounce of gold was US$280. By August 2011 the price had risen to over US$1,900 an ounce, although this has since fallen back slightly. In the last year alone, the value of gold has increased over 40%. Although less dramatic, the value of silver, gem stones and diamonds have also been increasing, with the rough diamond market seeing, for example, price rises of up to 35% in the first half of 2011. As a result, the replacement cost of jewellery has risen noticeably.

Historically we have recommended that clients carry out a thorough review of the sums insured of their ‘valuable items’ every three to five years. However, in the current circumstances, we would urge clients who have not considered the value of their jewellery in the last 12 months to seek professional guidance. 

An insurer recently gave us an example of one of their clients who had purchased a ring for £11,000 in 2009. The ring was stolen and the jeweller who supplied the original item advised that an exact replacement would today cost £17,500. Unless the client had obtained a re-valuation since the ring was purchased, replacing the ring with an identical piece would have left the client some £6,500 out of pocket.

The majority of insurers specify items of jewellery with a value in excess of £10,000 on clients’ Policy Schedules. In the event of a total loss, this specified figure will be the maximum amount that they will settle for. Hence it is critical that the specified sum insured is adequate.

We would urge you to carefully consider the value of your jewellery, and would recommend that you approach a jeweller or valuer for advice who is a member of N.A.G. (the National Association of Goldsmiths) and / or holds a qualification from Gem-A (the Gemmological Association of Great Britain).



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contacting the FCA on 0800 111 6768. Our FCA register number is 307515.

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