Yesterday on the BBC news they ran a piece about the fact that over 6 million households in the UK have jewellery that is under-insured. This is around 25% of all households which is a huge percentage and you can guarantee its same in Ireland if not higher. This is certainly not news to me as I have mentioned it a number of times in previous blogs. The BBC does have the advantage however of a slightly larger audience than myself so I was very happy to see they decided to report on this worrying trend.
The first issue is the value of precious metals. Gold has risen 500% in 10 years while silver has risen an astonishing 900% in the same period. That gold chain you’ve had since you were a teenager that you thought was worth around €500 could be worth over over €2,000.
Secondly, diamonds have bucked predictions and have risen too. Some analysts have predicted they will rise an average of 25% this year. Not all diamonds have risen in value by that degree, but some colours and clarities have risen more than others so its essential that you get an expert to appraise them.
The BBC report also brought up the issue of deliberate under-insurance. Regardless of what you pay for something or where you buy it, the item should be insured for what the ticket price of a similar item would be from a retailer in your geographic area. A valuer will study market trends very carefully and constantly check the retail price of items from a number of retailers in his area to ensure his values reflect theirs. Many people are under the illusion that the insurance company will hand them a cheque. They won’t. They will most likely replace the item or if they can’t, give vouchers. But not everyone is aware of this and they try to insure items for less than they are worth to reduce their premium, thinking that if they get a cheque they will be able to go to somebody who offers generous discounts on retail prices and replace the item (or just buy a new car). An insurance will consider this an attempt to defraud it and they will dismiss the claim altogether… let me say that again so it hits home… they will dismiss the claim altogether!
Jonathan Lambert, the chairman of the Institute of Registered Valuers, was interviewed for the report and advised people to have their jewellery revalued at least every five years. Personally I’d advise at least every three years (certainly in the current climate) but if its been five years you need to have it done now.
If you would like to view the BBC report please click on the link below.
http://www.bbc.co.uk/news/business-14772910
For more a more in-depth analysis from the BBC please click on this link.
http://www.bbc.co.uk/news/business-14766383
If you want to know more about having your jewellery valued click on this link http://www.irishvaluations.com or email me at info@irishvaluation.com or call me on (01) 4416365.
David Dupuy
Irish Jewellery Valuation Services
