Are diamonds your best friend?

We regularly talk about the risk of being underinsured. The value of both your home itself and your contents should be reviewed regularly to make sure you have sufficient cover in place.

Here, we focus on jewellery and the rise in the value of diamonds and other precious stones. If you have expensive jewellery items – particularly with precious stones , it is highly likely that the value of these items will have increased.

The following article from Covea Insurance explains more.

Gold is generally seen as a stable investment market, but in October 2018 the price of gold dropped to its lowest point in over 2 years. This was immediately followed by a rapid increase in value, with gold prices topping the £1,000 level just a few months later. This rapid increase continues to be fuelled by uncertainty over Brexit and world-wide political unrest.

This table below shows a snap shot of last six months:

 
DateGold £ per ounce$ to £1.00ct rb H SI1 at average retail in £s
01/01/20191008.241.279985
01/12/2018955.651.289940
01/11/2018950.471.309775
01/10/2018907.941.309725
01/09/2018927.211.309780
01/08/2018932.471.319660

Since the announcement by Rio Tinto that the Argyle Mine, which produces more than 90% of the world’s pink diamonds, is due to close in 2020, the price of coloured diamonds has continued to rise and this has had an effect on other coloured gemstones as they increase in popularity.
Are diamonds your best friend?
During 2018 sapphires remained the most sought-after coloured gemstone. However, the current prices of sapphire, ruby and emerald have led to an increase in the demand for more affordable gemstones. Some of the most popular gemstones include aquamarine, morganite and spinel with a renewal of interest in tanzanite.

The engagement and wedding of Prince Harry and Meghan Markle had an effect on jewellery trends during 2018.

Three stone diamond engagement rings representing past, present and future is a traditional choice and the demand for this design has significantly increased since the royal engagement. Prince Harry broke tradition by having a platinum wedding ring, choosing a slender brush finished band. Whilst the retail price of platinum rings remains high against other metals, its close relative, palladium has seen an increase in popularity.

Patek Philippe, Audemars Piguet, Vacheron Constantin, A Lange & Söhne and Rolex continue to be amongst the most sought after luxury brands. A number of watch houses, including Rolex, Chanel, Chopard, Gucci, Tag Heuer, Nomos Nomos Glashütte, Audemars Piguet, Breitling and IWC increased their prices selectively across their ranges by approximately 5% – 10%.  The reasoning behind the increase was the need for the watch houses to align UK prices with the worldwide market.

In light of this information, please do ensure that if you have purchased any of these gemstomes, that they have been valued and added to your policy schedule.

If you have any questions or concerns about the insurance cover for your jewellery, please do not hesitate to get in touch.

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