For many it may mean a chance to make money by selling old gold for scrap, and for others it may mean their gold jewellery is under-insured, following jumps in the price of the precious metal to record levels.

Admiral Home Insurance is urging households to review their cover for gold jewellery and luxury watches.

Luxury watches surge in value

Insurers tend to have limits on cover for valuables and some may need specific cover. Admiral said items worth more than £2,000 must be individually listed on its home insurance policies.

Luxury watches can be particularly valuable – rapidly outpacing inflation, with Cartier soaring by 35%, Omega by 31.5%, and Rolex by 6.5% in just two years.

But as prices rise, so do thefts – £60 million worth of luxury watches were reported stolen in the UK in 2024, while Admiral alone dealt with more than 300 claims for watches stolen outside of the home in 2023 and 2024. Of these, two thirds were valued over £2,000 and specifically listed on policies – underscoring the need to regularly check valuations.

Royal Mint prices rise

As prices rise, The Royal Mint has seen a shift in people investing in gold, with a younger demographic making up a larger portion of its customers. In 2020, Millennials made up just 11% of its customer base – today, that figure has nearly tripled to 29%. 

Market Insights Manager Stuart O’Reilly says: “Millennials are actually overrepresented in our database versus the wider UK population, suggesting strong future demand as they reach peak earning years. UK gold buying has traditionally lagged behind the USA, Germany, and Australia, but record bullion coin sales and our highest-ever number of customers indicate a major shift in attitudes.”

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Over the past year, nearly 90% of The Royal Mint’s online buyers have opted to have gold delivered to their home, rather than storing at a facility. With a 1oz gold Britannia coin now surpassing £2,000, many may not realise the insurance implications. As is the case with gold jewellery, coins or bullion bars worth over £2,000 will only be covered if specified on your insurance policy.

Can you sell white gold or rose gold for scrap?

Yes, white and rose gold contains pure gold mixed with other metals. In general, the value of a piece of jewellery is based on the cost of the materials it is made from plus the value of labour involved in making the piece.

When you sell for scrap, you only get the value of the materials, not the work that went into making it, as it will be melted down.

If your jewellery isn’t broken, just not to your taste, you might be better selling it as a second-hand piece, not to a scrap dealer.

How to make sure your gold is properly insured

With many at risk of being underinsured, Admiral recommends customers  ensure gold items and luxury watches are fully covered:

• Keep receipts – Store purchase documentation to track an item’s value. 

• Create an inventory – Maintain a secure, up-to-date record, including high-quality photos stored safely, such as in the Cloud. 

• Check your policy – With Admiral Home Insurance, any item worth over £2,000 must be listed as a ‘specified item’, and if you take the item out of your home, make sure you have selected appropriate cover.  Personal possessions cover is needed for protection for any item, below £2,000, to be covered away from home. Other insurers may have their own thresholds and requirements. 

• Store valuables securely – When not in use, keep items in a lockable box. Some insurers require items over a certain value to be stored in a safe. Admiral requires jewellery, items containing gold and watches worth over £10k to be stored in a safe. 

• Update valuations – Most high-street jewellers and specialists like The Guild of Valuers & Jewellers offer valuation services. If an item’s value changes, submit an updated document to your insurer. 

Noel Summerfield, Household Director at Admiral Insurance, emphasises the risks of underinsurance: “Gold jewellery and watches hold both financial and sentimental value, so you want to ensure they’re fully insured. Providing up-to-date valuations to your insurer is essential so if you do have to make a claim for theft, damage or loss, you will be covered for the full value of your items. If something is undervalued, insurers might not pay out its full worth.

“Gold prices have tripled in a decade – if your valuables haven’t been revalued in years, now’s the time. Depending on the value of your item, your insurer may need you to provide proof of how much it’s worth when you add it to your policy.

“However, it’s also important to make sure you check the value of your item regularly and if it changes, you should update your policy to make sure you’re fully covered. It’s easy to get an updated valuation, some high street retailers will offer it as a service and the National Association of Jewellers website has a find a valuer page.

“We don’t want anyone caught off guard by rising prices. Our Contents Calculator can help determine the right level of cover, and it’s always best to have an expert revalue your gold – especially since items worth over £2,000 must be specified on Admiral Home Insurance policies.”