As featured in the Birmingham Business Journal.
As anyone who follows the financial markets closely knows, precious metals have experienced a notable period of price appreciation. Not surprisingly, I have gotten a lot of questions, from a wide array of people, about whether it is “too late” to hop aboard the proverbial gravy train.
Trust me, there is no way I am going to fall into that compliance nightmare. So, I take a different approach and give them something along the lines of: “you know, it is hard to say. Arguments could be made both ways, and prices can move in either direction. What, I will suggest is this: if you have itemized any jewelry on your homeowners’ insurance, it might be a good idea to have someone reappraise it.”
Frankly, I should follow my own advice.
My wife and I will celebrate 32 years of marriage come this July, and gold is a lot more expensive now than it was back then.
On January 7, 1994, which was the day I walked into jewelry store on Howard Street in Baltimore, the so-called ‘spot price’ for gold closed at $387.10/ounce.1 The jeweler, Sam, told me how much gold he was going to use, how much the gemstones would cost and then essentially doubled the total in order to make the ring I had described.
While I have no clue what the going rate for the gemstones today, I do know the ‘spot price’ of gold has changed dramatically, closing at $4,987.49/ounce on January 23, 2026. I also know how much gold he used, and the value for which we have had it insured.
I am, of course, but one person who bought that one ring over 3 decades ago. There are millions of others who have purchased fine jewelry since. Wedding rings, necklaces, bracelets, earrings—all of them contain precious metals whose value may be materially higher than when they were acquired. In many cases, that value sits quietly in a drawer, on a wrist, or around a neck, largely unexamined.
Hey, I am not trying to run up your homeowners’ premium, and I do not work for a property & casualty insurance company. There is no benefit to me in any way. I simply can intuit that the cost to replace whatever you have insured will likely cause your eyes to water.
Jewelry is not the only valuable worth revisiting. Look at silverware, platters, serving trays and small keepsakes that you have accumulated over the years. Shoot, even items like the little baby cups and rattles well-meaning aunts, uncles, godparents and grandparents gave you or your kids may warrant a second look.
When my kids were born more than 24 years ago, the ‘spot price’ of silver fluctuated in the range of $4-5 per ounce.2 If you think gold has shot up, take a look at silver, whose ‘spot price’ closed at $103.19 per ounce on January 23, 2026.3 As a result, that silver baby rattle that Uncle John gifted Tommy decades ago now retails for, let’s just call it, a pretty penny.
Now, imagine the bullion value of any of the sterling serving ware you keep in drawers in your kitchen or China cabinet. Those tarnished candlesticks? Polish them up, show them off and reassess their value for, you guessed it, insurance purposes.
Of course, all of this assumes precious metals’ prices will remain elevated, and they might not. Precious metals can move lower just as easily as they can rally. That uncertainty really isn’t the point.
The point is that everything you own is an asset on your balance sheet, and part of your net worth. It is important to make adjustments when the value of something fluctuates meaningfully. Given the recent rally in precious metals, it might make sense for you to reassess the value of your personal effects for insurance purposes.
To be sure, you might not be able to replace the sentimental value for anything you lose. However, you don’t need to be out of a bunch of money either. Sometimes good financial planning starts with simply taking stock of what you already have.
All data provided by Bloomberg Financial
Sources:
- Bloomberg Financial
- Usagold.com – Daily Silver Price History
- Nasdaq – Silver Price Surges Past US $100, Hitting Triple-Digit Territory (January 23, 2026).
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