Going for Gold

July 11, 2013

With the world’s economy continuing to face ever-increasing turmoil, the market for precious metals and gemstones continues to hold its own with commodities such as gold and diamonds experiencing repeated leaps in value over recent years.

Traditionally, in times of economic uncertainty, investors will turn to sectors such as gold as a secure investment and with that increase in demand comes an increase in value. Silver is now worth about nine times more than it was ten years ago, and the price of gold has risen by 50% in the last year alone (Source:, 3 September 2011).

This could mean that the diamond ring or gold pendant sitting on your dressing table could well be worth more than you thought.

The effect of change
This is all great news if you are looking to sell. If this is not the case, then it is vital to ensure that you have the appropriate insurance cover in place to protect your assets. Unfortunately, many forget or do not realise these fluctuations in price can affect your insurance and, should a claim be made, replacing that article to its current worth may be difficult.

When calculating the value of their contents, many will use the original purchase price or have a rough guess. With items like jewellery this leaves individuals open to underinsurance. If a high value piece is underinsured, in the event of a claim, the insurer may only pay the amount that the item was originally valued at. If, with gold for example, the price has increased substantially it could leave the claimant significantly out of pocket.

Understanding the value
Providing an accurate assessment of the cost to replace all your personal possessions can be a challenging aspect of arranging insurance for your home. Here are some tips to make the process easier:


If you suffer a loss, you may never be able to replace the sentimental value or significance of an article. But by insuring them correctly, you can replace their current and correct financial value, ultimately providing peace of mind.

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