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As a result, your current insurance coverage may no longer be adequate. Consider having your jewelry reappraised and adjusting your limits as needed.

The Recent Spike in Gold Prices

The value of gold – like everything else – tends to fluctuate in response to various economic factors. Recently, the value of gold has been going up as central banks buy it as an inflation hedge. According to Investopedia, gold prices reached a new all-time high in early March, when the price for spot gold hit $2,141 per troy ounce. Over the last year, the price of gold has increased by 16%.

The Impact on Gold Jewelry

If you own gold bars, they are now worth more than they were a year ago. Alternatively, if you own gold jewelry, its value has likely increased as well.

You might not think much about the value of your belongings unless you’re planning to sell them, but having an accurate appraisal is important for insurance reasons:

• If you have to file an insurance claim, having an accurate appraisal will ensure you receive the correct compensation.

• You need to know the value of belongings to insure them properly. Whether you are scheduling your jewelry on your homeowners insurance policy or securing a separate policy, having an accurate appraisal enables you to obtain adequate limits.

When’s the Last Time You Had Your Jewelry Appraised?

If you haven’t had your gold jewelry appraised recently, the surge in gold prices makes this a good time to do it. Once the appraisal is complete, contact your insurer to see if you need to increase your limits.

Before paying for an appraisal, make sure the appraiser is qualified. Go through an association like the National Association of Jewelry Appraisers or ask your insurer for guidance on where to get an appraisal done.

Do you need help insuring your gold jewelry? Century Risk Advisors is here for you. Contact us.