The value of gold and diamonds have always moved in response to changing global conditions. Gold, long seen as a safe-haven asset, typically rises during periods of economic uncertainty, while diamonds respond more to consumer trends, supply availability and shifts in the luxury market. These natural market fluctuations mean that jewellery values do not remain static for long — and keeping valuations up to date is essential to ensure accurate protection and replacement cover.
GOLD & DIAMOND PRICES: WHAT THE LAST FIVE YEARS MEAN FOR YOUR JEWELLERY VALUATIONS
Over the past five years alone, the UK market has seen notable shifts in the value of precious materials — particularly gold and diamonds. These changes directly affect the replacement values used for jewellery and watch insurance purposes, which is why many owners are now discovering that their policies are out of date leaving the client over or under insured.
GOLD: A STEEP CLIMB
Gold has risen sharply in price over the five-year period, driven by global uncertainty and strong investor demand. For jewellery owners, this means that pieces containing significant gold content — such as chains, bangles, engagement rings and gold-cased watches — may now be worth considerably more than when they were last valued.
Even small increases in the gold price can have a meaningful impact on insurance replacement figures, especially for heavier items.
In the UK, the price of 24-carat gold (per troy ounce) has climbed significantly over the past five years:
In January 2021 the gold price was £2134 per troy ounce, increasing to £3232 in January this year. To give a sense of scale: that’s roughly a 50% increase in gold’s value over five years, which reflects both rising metal demand and changes in global markets including currency fluctuations.
Above: Gold Price Chart from Cooksongold referencing January 2021 – January 2026.
DIAMONDS: A MIXED PICTURE
Diamond values have been far less predictable. While prices surged during the post-pandemic rebound and then sharply declined. The rise and availability of laboratory grown diamonds, due to manufacturing advances in production techniques, meant there was an increasing supply which flooded the market, whilst the demand for natural diamonds reduced, this in turn led to lower trade prices (for natural stones).
- Unlike gold, diamonds are not a uniform commodity — their price depends heavily on shape, weight (carat), quality (cut, clarity, colour) and market demand. Over the past few years, diamond prices have been volatile.
- The post pandemic surge peaked in 2022, but this peak didn’t last. By 2023, many natural diamond prices began falling — reportedly by as much as 30-40% from 2021 highs for some stones.
On the whole diamond trade prices have dropped, often meaning that an item we value today is less than 10 years ago. In short: diamond valuations have been less stable than gold and depending on when and what kind of diamond you have, its “replacement value” may have dropped but likely with more variation than gold.
Below: Graph representing the percentage change in diamond prices since 2012. This is based on a range of carat weights, shapes and diamond qualities and gives a general market overview, created by GVJ as a visual guide only.
WHY UPDATED VALUATIONS MATTER
Insurance replacement values reflect today’s market, not the price you paid years ago. With gold trending upward and diamonds fluctuating and often decreasing outdated valuations can leave you exposed:
- Under-insurance if gold items have increased in value
- Over-insurance if certain diamonds have softened in price
- Claim complications if documentation doesn’t reflect current market conditions
Regular, professional valuations help ensure your policy is accurate and that you’re fully protected should a claim arise.
THE BOTTOM LINE
Jewellery values are not static. If it’s been more than a few years since your last valuation, now is the ideal time for an update. A current assessment offers peace of mind — and ensures your most treasured pieces are properly covered.