The soaring price of gold means your home insurance may not cover its value. How to know if your pieces are safe in 2026

Core Insights - The price of gold has significantly increased this year, reaching record highs in October, which is beneficial for investors but raises concerns for gold jewelry owners regarding the value of their possessions [1]. Price Trends - The price of gold has surged from approximately $2,658 per troy ounce at the beginning of January 2025 to $4,467 per troy ounce by the first full week of January 2026, indicating a substantial increase in value [2]. - Since the year 2000, the price of gold has risen by about 1,400%, in contrast to a 382% gain in the S&P 500 during the same period [4]. Jewelry Valuation - The retail value of gold jewelry typically exceeds the intrinsic value of the gold used, influenced by the quality and karat content of the piece [4]. - Pure gold's malleability necessitates its combination with other metals for durability in jewelry [5]. Insurance Considerations - Home insurance coverage for jewelry is generally limited compared to other personal belongings, with standard policies often having a sublimit for jewelry theft around $1,500 [6][7]. - The value of gold jewelry for insurance purposes may differ from its replacement value, which is closer to the retail value [5].