In the past few years, the price of fine metals has fluctuated with gold prices currently at an all-time high. The price of gold has increased by 40% in the past year alone. This in turn impacts the value of luxury jewellery and watch collections.
For many people, jewellery is deeply sentimental and often tied to cherished memories or loved ones in their lives. Beyond its emotional significance, gold is also becoming increasingly valuable financial asset.
Based on the current marketplace, it’s important to regularly review your jewellery’s value and insurance coverage.
The impact of gold prices on jewellery owners
The price of gold has been steadily rising for years with a single ounce of gold now valued at more than $3,100 USD (or $4,500 CAD) – a record high. With economic uncertainty dramatically affecting the stock market, gold has traditionally been viewed as a safe investment which has contributed to its rising value.
Gold’s increasing value can have a direct impact on your insurance coverage, especially if you have a specialized product like jewellery insurance. Since gold-heavy items may now be worth significantly more than they were a few years ago, routine appraisals are key to making sure that you’re not underinsured.
Understanding your jewellery coverage
Certain policies may offer automatic inflation protection, but this is not the norm. The advisors at Signature by Acera Insurance suggest taking the following steps to ensure you’re properly covered:
- Have your jewellery appraised every two to three years, or after significant market changes.
- Keep a detailed record of your collection that includes receipts, appraisals and descriptions of each item.
- Review your limits with your Signature client executive to ensure your jewellery is being covered at its current appraised value.
- If you acquire any new pieces, remember to review and update your policy limits.
Questions?
Connect with a Signature advisor at Acera Insurance. Our dedicated, experienced team of specialists is here to provide professional guidance and personalized advice to help you make well-informed decisions on protecting your assets.
Information and services provided by Acera Insurance, Acera Benefits and any other tradename and/or subsidiary or affiliate of Acera Insurance Services Ltd. (“Acera”), should not be considered legal, tax, or financial advice. While we strive to provide accurate and up-to-date information, we recommend consulting a qualified financial planner, lawyer, accountant, tax advisor or other professional for advice specific to your situation. Tax, employment, pension, disability and investment laws and regulations vary by jurisdiction and are subject to change. Acera is not responsible for any decisions made based on the information provided.