For the jewelry industry, 2011 was a record year, with U.S. sales expected to reach $68 billion—an 11% increase over 2010—and global jewelry sales anticipated to hit $175 billion (18% growth).
What this means for you, in a nutshell, is it will cost more to purchase new jewelry or replace lost, stolen or damaged items. Jewelry insurance protection from Chubb is more important than ever.
Three factors are driving overall jewelry sales:
- Rapid growth of luxury markets—Explosive growth of luxury markets in general is driving the global jewelry market. The growth leaders in 2011 were emerging markets with new-found wealth to spend: China, Latin America, the Middle East and Russia. Lifestyle changes in these markets have fueled the sale of luxury items, especially jewelry.
- Unprecedented jewelry auction sales—The 2011 Collection of Elizabeth Taylor auction at Christie’s is further proof of consumers’ desire to spend big. The $116 million sale of Taylor’s jewelry more than doubled the previous record for single-collection sales. The surprise of the sale was $11.8 million paid for a 16th-century natural pearl pendant originally owned by Mary Tudor of England.
- Rising production costs—As the costs of precious metals, diamonds and gems have increased, costs to produce new jewelry or replace existing pieces have increased, too.
- Precious metal pricing has fluctuated dramatically over the past five years, with record highs in gold and silver. For the first time, gold prices surpassed platinum. The 2012 forecast for gold is a 19% gain.
- Diamonds increased as much as 50% in some categories, depending on the size and quality of the stone. The price for a one-carat polished diamond rose 19% in 2011. Diamond prices are expected to surge 20% over the next four years.
- Gemstones such as sapphires, emeralds and rubies saw price increases in 2011 and are still very popular.
Keep pace with rising jewelry costs:
- Appraise jewelry collections every 3 to 5 years.
- Items scheduled on a policy for $100,000 or more or pieces containing diamonds of three or more carats should be reevaluated at least every 1 to 2 years.
- Use a professional jeweler with a Graduate Diamond or Gemologist certification.
- Call the Masterpiece® Protection Network at 1-877-60CHUBB (1-877-602-4822) for a complimentary referral to prequalified jewelers and appraisers.
How Chubb can help
To help ensure that our coverage stays in line with rising jewelry costs, Chubb automatically applies a 5% annual “inflation guard” increase to Masterpiece® Valuable Articles renewals. However, due to unprecedented price fluctuations in recent years, customers may request additional jewelry insurance protection, up to 25%, upon renewal.
Call 513-985-3600 to discuss jewelry insurance protection. Check out the Chubb Valuable Articles videos on YouTube.
Sources: www.thegemguide.com, www.diamonds.net, www.idexonline.com, www.bloomberg.com, www.forbes.com.
|Chubb refers to the insurers of The Chubb Group of Insurance Companies. Not all insurers do business in all jurisdictions. This literature is descriptive only. Actual coverage is subject to the language of the policy as issued. Chubb, Box 1615, Warren, NJ 07061-1615.|