According to the World Gold Council, gold is the most sought-after precious metal in the fine jewelry industry. While you can track the price of gold day-to-day using resources like Kitco, understanding why that price changes is key.
Why precious metal prices fluctuate
It’s complex, but here’s a bit of insight. When conflicts, trade disputes, or political unrest happen globally, investors flock to traditional or “safe haven” forms of investments (like gold and silver) and pull their funds from more volatile investments. Other factors include cost of living, inflation, interest rates, and constraints on supply and demand.
These can all increase the price of gold and silver (and your wedding ring), as these other factors change.
Appraisal increases: how rising gold and silver prices affect jewelry
So what do these changes mean for you, the casual gold jewelry owner? The answer lies in the value of your assets.
When Adam, a member of our Customer Care team, bought his wife’s engagement ring, he did his due diligence and had it appraised and insured.
One day, he was looking through paperwork and saw that four years had passed since his last appraisal.
When Adam had the ring re-appraised, he was shocked at how much the value increased.
Not only was the diamond more valuable, but the white gold setting was too.
When he bought the ring, gold prices were around $1421/oz. Today, his updated appraisal noted a gold price of almost $4,000/oz.! That dramatic increase made the substantial change in the rings overall value clear.
Insurance Value Adjustments: the change in value still matters
Even if you’re not planning to sell your jewelry or heirlooms anytime soon, you still want to know if its value has changed, particularly for insurance.
Had Adam’s wife’s ring been damaged or lost before he had it re-appraised, his insurance coverage would have fallen thousands of dollars short. He wouldn’t have been able to get a same kind and quality replacement.
Read more about why regular appraisals are so important and more about Insurance Value Adjustments here.
Since market conditions can change so dramatically from year to year, Adam’s now paying extra attention to appraisal dates to help make sure their most valuable asset is properly protected.
Insuring high-value gold and silver jewelry
Most jewelers and appraisers recommend getting a new appraisal every other year, if not annually.
To maximize your insurance coverage, inquire into getting a qualified appraisal and immediately update your policy accordingly.
While watching gold markets can be riveting, updating your appraisal every other year should be enough to keep you covered.
Looking to insure your gold jewelry with specialized jewelry insurance? Check your rate by using button below!
