February, the month of love, often inspires the gifting of diamonds, be it for engagements or anniversaries. With the allure of these gems being timeless, it’s crucial to ensure their protection and value retention.
Recent financial insights from De Beers indicate a surge in diamond prices, attributed to heightened demand. The company’s sales in January soared to $650 million, marking their highest in three years. This trend, driven by a shift in consumer spending from travel to tangible assets like diamonds, underscores the importance of informed purchasing and safeguarding of these precious stones.
It is necessisary to insure high-value items like diamond rings, in some cases, specialized insurance is often required for such expensive pieces, as not all insurers are willing to cover them.
Statistics reveal that a significant percentage of engagement rings exceed the $2,500 mark, with the high-end market in South Africa showcasing rings that could cost up to R5 million to replace. However, a common oversight is the underinsurance of these items, leading to significant financial losses in case of damage or theft. The replacement value of jewellery fluctuates with market conditions, making regular insurance reviews essential.
Here are a few tips to protect your precious diamond investments:
- Be Cautious with Social Media: Avoid sharing images of your expensive jewellery online. High-profile cases like the robbery of Kim Kardashian West, who lost $10 million in jewellery, underline the risks of online exposure.
- Maintain Proof of Ownership: Always keep purchase receipts, warranties, or certificates that authenticate your ownership and details of the jewellery. This is crucial for insurance purposes, especially for inherited or antique pieces.
- Check Your Insurance Coverage: High-value jewellery items are not automatically included in standard home contents policies. Be sure to specify these items in your policy, and understand the terms, especially if you plan to travel with them.
- Proper Storage: Ensure that your jewellery is stored in a locked safe when not in use, as per your insurance policy’s requirements. Improper storage can lead to limited compensation in the event of loss.
While it might seem unromantic, insuring your high-value items from the start is a crucial step in protecting your investment from potential accidents, damage, or theft, which are unfortunately common occurrences.
Ask your broker to speak to Ami for a solution that best suits your unique needs.