Gold prices have surged to record highs in recent months. Driven by global economic uncertainty, inflation fears and geopolitical tensions, investors have turned to gold as a safe haven — significantly pushing its value up. While this is good news for anyone holding gold assets, it also comes with an important caveat: many households may now be underinsured when it comes to their luxury gold jewelry, watches and heirlooms.
If you haven’t reviewed your insurance policy lately — or worse, you’ve never had your high-value items appraised — now is the time to take action.
Why the Spike in Gold Prices Matters to You
Jewelry isn’t just sentimental — it’s a financial asset. When gold prices rise, so does the value of gold-based pieces, especially those with high purity. A gold necklace purchased five years ago for $5,000 may now be worth significantly more. But unless you've had it professionally reappraised and updated your insurance policy accordingly, your coverage might only reflect its original, outdated value.
This is where many policyholders fall short. Standard homeowners or renters insurance policies often include limited coverage for jewelry — typically capped at around $1,000 to $2,500 unless you’ve added a specific rider or scheduled item coverage. Without up-to-date valuations, you risk being underinsured in the event of theft, damage or loss.
The Hidden Risk of Being Underinsured
It’s easy to assume your valuables are protected, especially if you’ve held the same insurance policy for years. But coverage that seemed sufficient even a few years ago may no longer be adequate given current market conditions. And it’s not just about the raw gold value — inflation, craftsmanship, brand recognition (think Cartier or Rolex) and historical significance all influence an item’s worth.
The average policyholder tends to underestimate the true value of their luxury items, especially when sentimental attachment overshadows a realistic appraisal. If you’re relying on outdated valuations — or no documentation at all — you could be left footing the bill if something goes wrong. Having the right documentation also helps streamline the claims process in the unfortunate event of loss or theft.
Tips for Protecting Your Gold Jewelry
If you haven’t reviewed your jewelry coverage recently, here are a few steps to take:
Inventory Your Collection: Start by documenting each piece — photos, receipts, certificates, serial numbers and any previous appraisals. Even items stored in a safe or safety deposit box should be accounted for.
Get a Professional Appraisal: Look for a certified gemologist or a reputable jewelry appraiser, preferably one affiliated with a professional organization such as the American Society of Appraisers (ASA). Ask for an insurance replacement appraisal that reflects current market values.
Update Your Insurance Policy: Share your updated appraisals with your insurance agent and discuss whether your current policy offers adequate protection. If not, explore scheduled personal property coverage or a separate valuables policy.
Reappraise Periodically: Gold and other precious materials fluctuate in value. As a rule of thumb, items should be reappraised every three to five years — or sooner if market conditions shift dramatically, as they have in 2025.
Secure Storage and Documentation: Insurers often offer lower premiums for valuables kept in secure storage, such as home safes or bank deposit boxes. Keeping digital backups of receipts, appraisals and photographs in cloud storage can also help support any future claims.
A Rising Market Shouldn’t Be a Liability
Whether you wear your gold or keep it locked away, it has monetary value that deserves the same attention as your home, car or other high value items. By being proactive, you can protect yourself from the emotional and financial stress of discovering too late that your treasured possessions weren’t properly insured. As gold continues to climb, your jewelry is becoming more valuable by the day. Make sure your insurance coverage reflects that reality.
Questions About Gold Jewelry Insurance Coverage?
Contact Wallace & Turner in Springfield (937) 324-8492 or Urbana (937) 652-8492 to review your existing policies and ensure your gold jewelry and heirlooms are fully protected.
