How to ensure the value of your gifted jewelry lasts a lifetime

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How to ensure the value of your gifted jewelry lasts a lifetime

The holiday season is marked by joyous celebrations, family gatherings, festive décor, and of course, gift-giving. From sparkling engagement rings to cherished family heirlooms, fine jewelry has long been a symbol of sentiment and a lasting asset. According to data from the 2024 Engagement Ring Trends Study by Jewelers Mutual, jewelry ranks among the top most valuable possessions Americans own, with many choosing to gift or pass down pieces that hold lasting significance.

Value of precious metals in fine jewelry

Fine jewelry holds intrinsic value regardless of the gems or precious metals used in its design. According to Jewelers Mutual’s 2024 Jewelry Box Study, which surveyed 1,500 people, nearly 70% of respondents reported owning up to 10 pieces of fine jewelry. Half of all respondents said they purchased the items for themselves, with others receiving jewelry as gifts or inheritance. Beyond bridal jewelry, watches, necklaces and other rings were the most popular types of jewelry respondents had acquired within the past three years.

Yet, with the recent rise in commodities such as gold and silver this past fall, fine jewelry has grown even more valuable in today’s market.

Although precious metal prices fluctuate, the recent high values may impact the cost of fine jewelry in the retail market. However, there are other ways to gift jewelry that don’t involve purchasing a new item.

Repurposing inherited jewelry

The holiday season also lends gift-giving opportunities for loved ones to pass down their most precious pieces that hold generations of sentimental value. Inheriting jewelry from a parent, grandparent or extended family member may be exciting, but it also might leave you with a lot of thoughts about how to use it, such as its value, whether you can alter it to fit your style or what the resale market is.

Heirloom jewelry generally contains precious metals and gemstones that make for an eye-catching piece, but ultimately, what you choose to do is up to you — whether you want to redesign it, sell it or keep it as-is.

Engagement rings and holiday proposals

The holiday season, specifically the month of December, is the most popular time of year for wedding proposals, according to The Knot, and an engagement ring is often the single most valuable piece of jewelry a person owns.

Jewelers Mutual’s Engagement Ring Study found the average ring costs anywhere from $2,500-$5,000.

Additional findings from the study include:

• 43% of study respondents purchased their engagement rings from jewelry brand stores. 28% bought theirs from retail stores; 10% supported a local business.
• 75% of respondents wear their engagement ring to work, with 63% stating they wear their ring to social events.
• 50% of study respondents wear their engagement ring on a daily basis.
• 91% of respondents state that they travel with their engagement ring.

Wearing your engagement ring after the proposal frequently makes the possibility of losing it more likely, so it’s important to know how to best care for your new piece.

Insuring treasured assets

Whenever you’re gifted valuable jewelry, it is important to take the necessary steps to protect your new asset. There is no price tag on peace of mind, and obtaining jewelry insurance for special items like a new engagement ring is a smart move.

“Any valuable piece of jewelry, whether it is brand new or an inherited family heirloom, should be insured,” said Haley Sacks, zillennial finance expert and founder of Mrs. Dow Jones. “If you are gifted a valuable piece of jewelry, your first step should be to have it appraised. Once an appraiser confirms the item’s value, it should be insured.”

Reputable gem dealers or retailers will provide documentation, such as a gemstone grading report, which may be required for proving authenticity by an appraiser.

Adding your jewelry to your standard homeowners’ insurance policy may not provide sufficient protection, and could leave you underinsured due to coverage limitations. A specialized jewelry insurance policy often goes beyond a typical homeowners or renters policy to provide comprehensive coverage for the appraised value of your most treasured pieces.

This practice becomes especially important when family members inherit jewelry from relatives and do not know the history of when or where the piece was purchased. Going through the appraisal and insurance process will help protect these family heirlooms and ensure they’re kept safe to pass down for generations.

The holiday season is not just about giving a beautiful gift, but also about recognizing the enduring worth of the jewelry itself and the tangible link that connects the item’s true value. Safeguarding valuable pieces and considering their long-term significance can help ensure that jewelry gifts remain treasured for years to come.

Methodology

The Jewelers Mutual study was conducted in August 2024 via an online survey through Qualtrics. A sample of over 1,500 adults in the U.S. aged 18+ who have purchased or received an engagement ring in the last five years were recruited via an online research panel and surveyed via online self-completion.

Insurance coverage is subject to underwriting review and approval, and to the actual policy terms and conditions. Any descriptions are a brief summary of coverage and are not part of any policies, nor a substitute for the actual policy language. Coverage options may vary by state and by product. Exclusions and limitations may apply. Insurance coverage is offered by a member insurer of the Jewelers Mutual Group, either Jewelers Mutual Insurance Company, SI (a stock insurer) or JM Specialty Insurance Company, or otherwise via other carriers through JM Insurance Agency Partners, Inc. Policyholders of Jewelers Mutual Insurance Company, SI and JM Specialty Insurance Company are members of Jewelers Mutual Holding Company.

This story was produced by Jewelers Mutual and reviewed and distributed by Stacker.