The price of gold, much like any other stock, changes day-to-day. You can follow these changes with trackers from companies like Kitco.
Why Jewelry Owners Should Keep an Eye on Gold Prices
Since you don't buy and sell gold for a living (or even a hobby), what do these changes mean for you, the casual gold jewelry owner?
Listen to this:
When Adam, a member of our Customer Care team, bought his wife’s engagement ring, he did his due diligence and had it appraised and insured.
One day he was looking through paperwork and saw that four years had passed since his last appraisal.
When Adam had the ring re-appraised, he was shocked at how much the value increased.
Not only was the diamond more valuable, but the white gold setting was too.
When he bought the ring, gold prices were around $650/oz. Four years later, his updated appraisal noted a gold price of $1,421/oz. Knowing that, it certainly made sense why there was such a substantial change in the ring’s value.
If Adam's wife wanted to upgrade her ring, she could potentially get more than they paid for it, and be able to upgrade without paying any extra!
Not Planning to Sell Your Jewelry? The Change in Value Still Matters
Even if you're not trying to sell your jewelry, you still want to know if its value has changed, particularly for insurance.
Had Adam's wife’s ring been damaged or lost before he had it re-appraised, his insurance coverage wouldn’t have been enough to cover the full value of the ring and he wouldn’t have been able to get an equal replacement.
This is why it's so important to keep jewelry appraisals up-to-date.
Since market conditions can change so dramatically from year to year, Adam's now paying extra attention to appraisal dates to make sure their most valuable asset is properly protected.
How to Protect Against Fluctuating Gold Prices
Most jewelers and appraisers recommend getting a new appraisal every other year, if not annually.
To be sure your insurance coverage is worth its weight in gold, ask your jeweler about getting a qualified appraisal. Then, update your coverage accordingly.
While watching gold markets can be riveting ... updating your appraisal every other year should be enough to keep you covered.
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