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The Meghan Markle effect

 The price rise of coloured diamonds, most notably blue diamonds, was predicted back in 2016 when Bonhams auctioned a 3.81 carat blue diamond for £2.32 million – almost twice its estimated pre-sale value1.

While the value increase in this case was most likely down to rarity, Harry’s gift of Diana’s aquamarine ring to Meghan on their wedding day is likely to have a similar effect on demand for aquamarine jewellery. How will demand affect value?


How Harry marrying Meghan has seen the value of aquamarine soar

Meghan has already been seen to have a profound effect on the fashion industry, with everything the Duchess of Sussex touches selling out2. Couple this with the recent statistic that women’s average spend on jewellery at auction has risen by more than 50% in the last five years, means an increase in the value of aquamarine seems almost guaranteed3.

There is much to consider when investing in trending gemstones. From knowing the type of stone to purchase, to being able to determine the true value of a piece. It’s important to do your research.

Key things to consider when buying collectors’ jewellery

With the rise in value and popularity of a product, so increases the temptation to create counterfeit replicas. You must always be wary when looking to invest in trending jewels, to ensure that you are not paying more than the true value of the piece.

Here are a couple of things to remember when buying any collectors jewellery:

  • Don’t trust the appraisal
    Different to a grading report, an appraisal contains the perceived paper value of a piece of jewellery. These are important for insurance purposes; however, they should not be taken at face value when it comes to purchasing. Appraisals are routinely abused in the selling process, stating over-inflated worth values to make a piece appear discounted. It is always advisable to find your own appraiser who has no affiliations with the dealer. This will enable you to establish the true value of the piece you are looking to purchase4.
  • If it’s too good to be true, it probably is
    Jewellery is big business. And like any business, it needs to make a profit. No jeweller will sell you a gem below the current market value or for less than what it originally cost them. Bangkok’s infamous gem scam is an example of a scam that takes advantage of trending gemstones. Every year thousands of Bangkok tourists are fooled into paying what seems like reasonable prices for coloured gems, only to get home and find they are worthless5. Never pay out for high-value gems or jewellery without grading certificates or independent valuations. You should always ask to see documentation to certify a gem’s origin.

How an increase in the value of your jewellery could affect your insurance

If predictions noting the increasing popularity of coloured gemstones are correct, collectors already in possession of trending jewels could see a rise in the value of their collections.

It is worth getting your precious items appraised regularly to ensure each piece is still covered under the single article limits within your policy and or to check the specified values you have declared are adequate.



Underinsurance is a common problem. And, in the case of jewellery, antiques or other high-value collectables, could lead to substantial losses.

When you buy jewellery, it is important to hold on to the documentation, valuations and certificates.

If you have any questions or concerns about your Home and Contents Insurance, why not get in touch with the Jelf Private Clients team.

1 - https://www.londonde.com/blogs/2017-predictions-for-the-diamond-coloured-gem-and-jewellery-market/

2 - https://www.vogue.com.au/fashion/trends/everything-you-need-to-know-about-the-meghan-markle-effect/news-story/17c24d0c29747971a64ae322370100a1

3 - https://www.londonde.com/blogs/2017-predictions-for-the-diamond-coloured-gem-and-jewellery-market/

4 - https://beyond4cs.com/wp-content/uploads/2017/DontGetRippedOff.pdf

5 - https://www.into-asia.com/bangkok/gemscam

6 - http://www.cityam.com/215599/beware-under-insurance-insurance

Tags
  • high net worth
  • underinsurance
  • jewellery-fine art-antiques
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