As a gemologist and fine jewelry appraiser, I frequently encounter concerns from clients regarding rising and volatile metal prices, how it is impacting their insurance coverage, and the importance of protecting their valuable pieces. In addition, all the talk has been about how the popularity of lab-created (factory-made) diamonds is impacting natural diamond values. In today’s market, these issues are intertwined, and it’s vital to understand how they affect the jewelry you own and intend to purchase.
Understanding Rising Insurance Rates
In the last few years, the cost of insuring jewelry has seen notable increases. This trend can be attributed to various factors, including inflation, rising repair costs, and increased jewelry values. Insurers often adjust rates based on rising replacement costs, which means the premiums you’re paying may no longer reflect the true value of your gems and precious metals.
To ensure you’re adequately covered, it’s essential to have your jewelry appraised regularly by a certified professional – we recommend revieing every 5 years or so. Remember, most people working in a jewelry store are NOT gemologists or trained appraisers. An updated appraisal can help reflect the current market value, potentially preventing you from overpaying for insurance or, conversely, risking being underinsured.
The Lab-Created Diamond Phenomenon
Lab-created diamonds have emerged as a compelling alternative to natural diamonds, offering a similar aesthetic and chemical composition at a more accessible price point. However, it’s important to recognize that the rise of lab-created diamonds may also influence insurance values.
While lab-created diamonds are less expensive than their mined counterparts, they still hold value. If you own lab-created diamonds, it’s essential to understand that their appraisal should be distinct from natural stones to ensure accurate valuation. Some insurance providers may differentiate between lab-created and natural diamonds, which could affect your premium based on the overall content of your policy.
Protecting Your Jewelry Investment
With rising insurance rates and varying values due to lab-created stones, protecting your jewelry has never been more crucial. Here are some steps you can take to safeguard your treasured pieces:
- Regular Appraisals: As mentioned, regular appraisals can help keep your insurance accurate. It’s prudent to have your jewelry appraised every few years, particularly when market conditions fluctuate or when significant changes occur in your collection.
Overall Slide of Natural Diamond Prices Over Past Two Years
Graph courtesy of Idexonline.com
- Store Properly: Use a designated jewelry box with compartments to avoid scratches and damage. Consider using fabric pouches for individual pieces, especially those with delicate features.
- Avoid DIY Repairs: While it may be tempting to fix minor issues at home, professional repairs are always recommended. A skilled jeweler can maintain the integrity of your piece while ensuring that any necessary repairs preserve its value.
- Keep Records: Maintain an up-to-date inventory of your jewelry collection. Have appraisals for the better items, and at least a photograph and brief description of lesser items – they can add up. This documentation will be invaluable in case of loss or theft. Know the limitations of your insurance policy, especially when it comes to unscheduled jewelry.
- Consider Specialized Insurance: Depending on your collection, you might want to explore specialized jewelry insurance rather than relying solely on homeowner’s insurance. These policies often provide better coverage tailored to your needs.
Your jewelry deserves to be protected, and Gemcorp, Inc. is here to help you every step of the way. Please call for an appointment 404-851-9489.