Simon Johnson from Marmalade Fine Jewllery on the importance of checking your precious jewellery insurance cover regularly (Ad)
Registered jewellery valuer and owner of Marmalade Fine jewellery, Simon Johnson FGA MIRV discusses the importance of checking your insurance cover for your precious jewellery items regularly, and probably more regularly than you’d expect.
However boring or humdrum insurance may appear to be, it might well be time to have a look at your precious jewellery items, check the values with a qualified registered valuer and update your findings with your insurer.
If you are the type of person that likes to have the peace of mind associated with having adequate insurance, then having the value of your items checked regularly is vital. When getting an item valued it’s important to not only get a valuation that is acceptable by your insurers but also to not assume that somehow it will keep pace with the market in the subsequent years.
We see clients regularly who think that the valuation provided to them when they purchased an i
tem will provide sufficient cover many years, sometime decades later. In 99% of instances this simply isn’t the case and will lead to an ‘insurance cover gap’ and if there is an unfortunate need to claim, this gap will leave the claimant short by the amount covered and the current market value. Some people of course may be able to meet this shortfall but if it is simply too much, the item becomes irreplaceable.
Historically a valuation for insurance purposes for a jewellery item or more specifically a re-valuation was considered valid for approximately 3-5 years. Sadly, in many situations however this is no longer the case, as global economic forces are currently contriving to drive prices up much more quickly than previously.
Take for instance recent global events.
In 2021 ( the most recent figures available) Russian diamonds accounted for approximately 33% of the global supply (source www.statista.com/topics) , since the invasion of Ukraine in February 2022 and the application of international sanctions, the supply of these Russian diamonds into the global market has become less reliable or indeed desirable for many consumers.
As a consequence of this reduction in supply, there has been corresponding upward pressure on prices, which has forced a global overnight rise in diamond prices – allied to this is the fall in the value of the dollar against the pound and the increase in the price of gold.
For example, a year ago the pound bought $1.39 which fell to a low of $1.18 in July this year – a drop of 15% - since all diamonds globally are priced in dollars this factor alone made all diamonds 15% more expensive over the past 12 months.
In the year to August 2022 gold peaked at £1553 per ounce in February, against a 12 month low of £1244, a 20% increase in the raw material price. It would appear that the jewellery industry is not immune from the global cost of living crisis and all raw materials and costs of production are on the increase.
In 2 recent cases we had clients with significant diamond rings who had valuations produced by
ourselves less than 24 months ago that due to these external factors beyond anyone’s control were between 42% and 47% short of the current replacement values. That’s in less than 2 years!
If you have any diamond jewellery which contains any single stone of over a carat in weight with a valuation over 24 months old, now is the time for a re-valuation. – no question about it. It is time to check your insurance cover, talk to your insurance company, read the small print on your exclusions and get a re-valuation.
At Marmalade we have 3 fully qualified gemmologists and 2 qualified jewellery valuers on site who are members of the countries leading jewellery valuing association ‘ The Institute of Registered Valuers’
All valuations are prepared in our on-site facility The GemLabW4 and with our drop-off service typically take a week to produce.
Alternatively, we hold monthly ‘Valuation Event Days’ where, by appointment, you can have your items valued while you wait and take them away with you the same day.
Our next events are one the 27th September, the 25th October and the 22nd November, please book early to avoid disappointment as these popular event days fill up really quickly.
For more information and full price list please click here www.thegemlabw4.co.uk/jewellery-valuations
Please call 0208 7421178 to make an appointment.
September 23, 2022