Gold prices hitting record levels is leading some Brits to look at buying gold as a better investment than putting their hard earned cash into savings accounts.
Research from esure home insurance, reveals that nearly 40% of Brits consider buying gold a better investment than saving cash.
In fact, some 14% have bought an item of gold as an investment in the past year and 6% have swapped treasures for cash at a “bling and buy” party.
Of concern though is that the majority of homeowners have never had their valuable gold items valued and consequently run the risk of being uninsured should their jewellery or valuable items be lost or stolen.
Some valuable items, including gold rings and necklaces have of course been bought by the wearer but many valuable items have been received as gifts or indeed inherited from friends and family.
Even when received as gifts or inheritance, items are often not valued and owners frequently significantly undervalue their worth.
Gold prices have in fact soared by more than 300% over the last decade – a fact that only 10% are aware of.
The survey also revealed that 57% of homeowners admited they had no idea how the rising value of gold may impact their home contents policy. Over half of Brits have never had their engagement or wedding rings valued, with those who have waiting an average of eight years before having their valuable possessions revalued.
Nikki Sellers, Head of home insurance at esure, comments: “Dealing with lost or stolen possessions is stressful and upsetting at the best of times but finding out you are underinsured for your Aladdins Cave makes the situation even worse.
“To avoid unnecessary hassle, homeowners should ensure that they revalue precious jewellery or costly household items- whether they are made from gold, silver or diamond – to avoid any disappointment should anything unfortunate happen.”
MoneyHighStreet comments: “Whether you opt for gold as an investment or have valuable gold items for the love of them, ensure you do have adequate insurance to cover them.
“And consider that in the contest between better coverage and lower premiums, the best home insurance is the policy that provides you with the level of cover you need to meet your requirements and mean that you have the appropriate cover in place should you need to make a claim.
“Being underinsured will invariably cause you problems if you need to make a claim. So don’t risk it – if you need advice, speak to an insurance broker.
“And finally, if you do have cash in savings accounts, do make sure you regularly check the interest rates being paid to make sure you’re continuing to get the best deal you can – if need be move your money to another account to get improved returns.”