Precious Metal Surge Means Your Fine Jewelry May Be Woefully Underinsured

If it’s been a few years since your fine jewelry was last appraised, your insurance coverage may no longer reflect what it would actually cost to replace your pieces today.

The reason is simple: precious metal prices have surged dramatically. Gold is now trading around $5,235 per ounce, up from $2,040 just two years ago — a 157% increase. Platinum has climbed from $905 to $2,165 per ounce (+139%), while silver has jumped from $23 to $87 (+278%).

For consumers, those increases translate directly into higher replacement costs — and a growing risk of being underinsured.

Jewelry insurance is typically based on a specific appraised value, known as the retail replacement value. If that appraisal is several years old, the amount listed on your policy may fall far short of what it would cost to replace the piece today.

For example, a ring insured for $5,000 a few years ago might now cost significantly more to recreate due to higher metal prices and rising labor and material costs. If the piece is lost, stolen or damaged, your insurer will generally pay only up to the scheduled amount — leaving you responsible for any shortfall.

That gap could mean the difference between replacing a piece “like kind and quality” or settling for something smaller or less valuable.

Some insurance policies include automatic inflation adjustments, often in the range of 1% to 5% annually. While helpful during stable markets, these increases rarely keep pace with the rapid swings seen recently in gold, platinum and silver.

Even policies that apply broader “Insurance Value Adjustments” may not fully capture sudden spikes in specific metals or the unique characteristics of your individual piece.

Most jewelers, appraisers and insurers recommend updating jewelry appraisals every two years — or even annually in periods of significant market movement.

You should also consider a new appraisal if (1) Your piece has been repaired, resized or redesigned; (2) You’ve added stones or changed the setting; (3) Precious metal or gemstone prices have risen sharply.

Your trusted jeweler or certified gemologist can provide an updated retail replacement value based on current market conditions.

Here are a few steps to protect your coverage: (1) Check the date on your most recent appraisal. (2) Schedule a professional reappraisal if it’s more than two years old. (3) Submit the updated valuation to your insurance provider. (4) Confirm your policy covers full replacement value, not cash value or a capped amount.

Precious metals are often viewed as “safe haven” assets, which means their prices can rise quickly during periods of economic uncertainty, inflation or global instability. While that may increase the intrinsic value of your jewelry, it also raises the cost to replace it. Regular appraisals will help ensure your coverage keeps pace with the market.

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