Gold is often seen by many as a cautious investment safety net, and kept aside from their investable wealth. However, the majority of people have not considered re-valuing their gold for insurance purposes, most of which is in the form of personal items such as jewellery.
The replacement cost of lost or stolen gold jewellery has risen dramatically as the price of gold has climbed, but their insurance is likely to be based on a 5 year old valuation and vastly underinsured, leaving the client with an unexpected, and avoidable, expense to replace the loss.
Simon Bonnett, of Fiducia Wealth Management in Colchester, observes ‘When we create a financial strategy for clients, it is important to consider their non-investable wealth from both a value and replacement cost perspective. We have observed that clients often underestimate value, and many simply have not considered the true, current cost of replacing a gold item. We believe in providing a regular total wealth assessment, which means considering an individual and their wealth (in whatever form it comes) at their true, current value, and insuring appropriately.’
Fiducia are keen to make sure clients insure their wealth (including gold items) correctly.