Gold prices are on the up, and more and more British consumers are specifying precious metals such as gold on their home insurance policy.
MoneySupermarket has found that recordings for gold items in home insurance quotes has more than doubled in the last two years (over 103%). With the cost of gold rising by more than 40% over the last two years, the average insured value of gold has only risen by 5.8%. These facts suggest that the majority of households are probably under-insured.
Further findings by MoneySupermarket revealed a third of UK adults have bought items of gold recently. More than 15% buying it as an investment but only 1/5th of those have specified it on their insurance policy as a specified item.
With Gold being considered a “Safe Haven” asset during these extremely challenging economic times, the cost of gold has seen a large rise. However Goldealers recommend that if you are to go down this route of investing in precious metals, the general public need to factor into consideration the cost of insuring it also.
For example, where a Krugerrand may have cost £700 in 2010, you would be looking at a value of over £1030 now.
Goldealers offer a precious metals calculator. Although this calculator offers the sale price, it is extremely close to the market value. Simply adding 5% to the valuation will give an accurate insurance valuation for investment gold.
Upon yearly renewal of your household insurance, Goldealers Ltd would always recommend that you re-value your items of jewellery if you are planning to keep them in a safe at home. If you are not insuring your items to their full value, it is almost not worth insuring them at all as insurance companies could decide not to pay out.
For Jewellery, Goldealers Ltd recommend that you seek a professional valuation. Please call 01206 585 000 and we can always point you in the right direction.