Precious metals price surge 2026

If you have owned gold Krugerrands or gold sovereigns over the last five to eight years, their value will have soared. At the end of 2015 a gold Krugerrand was around £841 per ounce¹but come 2023 gold prices started climbing to record highs; by mid to late February of this year (2026), one gold Krugerrand has a market value of £3,600 – £3,995.² That’s a big leap in price and it doesn’t stop at Krugerrands. If you own gold sovereigns it is interesting to note that the highest value of a full gold sovereign in 2020 was £369.20, in 2024 it reached a high of £455.96, and in February 2026 and at the time of writing, a gold sovereign is now worth £873.45.³

Mark Smith, Director at Quastel Associates (specialist valuers of jewellery, watches, fine art and antiques), trains brokers and insurers on valuations and underinsurance. Mark has 22 years’ experience in the field of high value collections and is an Associate of the Society of Fine Art Auctioneers and Valuers. He gave his thoughts on the price of gold today and in the near future:

“Gold is set to continue its upwards trajectory unless circumstances change, such as Ukraine and Russia signing a peace deal, or some kind of resolution in the Middle East. From an investment point of view, gold is seen as a safe commodity in times of unrest with large countries stockpile it. Investors in watches and property are now investing in gold, but it is important to note that prices can fluctuate from one morning to that afternoon.”

Going for gold

Even if gold coins are not part of your collection of valuables, you will need to consider your gold jewellery and watches. Wedding and engagement rings, jewellery sets, bangles, bracelets, and luxury watches can all contain a significant amount of this precious metal. With the price of gold having increased by such a significant amount, your jewellery collection and luxury watches have probably risen in value because of their gold content. And if your valuables are worth more, your insurance coverage will need to reflect this.

A Home Insurance policy taken out five or ten years ago might not provide sufficient coverage for your jewellery and watch collection. This is why a jewellery valuation for insurance purposes from a reputable, established company is strongly recommended.

Platinum – precious metal price impact on jewellery value

Wedding rings, engagement rings, and luxury watches are often crafted from platinum. While the amount of platinum in rings is relatively low compared to a gentleman’s luxury watch, obtaining an up-to-date valuation for your jewellery is crucial to avoid underinsurance.

At the start of January 2016, platinum was priced at around £19.50 per gram. At the end of January 2026, platinum was valued at £67.26.⁴

If you were to lose your rings or be a victim of theft, you might not receive the full insurance payout if you are underinsured. Similarly, if you own one or a collection of watches from brands such as Rolex, Patek Philippe, Jaeger Le-Coultre, Vacheron Constantin, or Audemars Piguet, which often contain platinum in the limited edition or complex models, be aware that the popularity of and limited supply of watches from brands such as these, combined with the high price of platinum may mean your watches are worth far more.

Underinsurance – the pitfalls

Underinsurance often occurs when clients haven’t reviewed their items and sums insured for a number of years, instead relying on the standard indexation applied to their cover at each renewal. Whilst indexation is a valuable aid, it won’t necessarily take into account certain market trends and the rise in price of precious metals (platinum and gold), and precious stones. Replacement costs can often grow much more quickly than indexation, leaving your sum insured at an inadequate level.

Jewellery insurance is based on the current retail replacement value rather than the original price of the piece. The sum insured needs to be calculated on the cost it would be to replace the item with a similar piece in quality, age, and condition. A professional valuation for jewellery and timepieces with diamonds and other precious stones will take into account clarity, colour, carat and cut, and the current cost of the precious metal(s) used.

If your jewellery is set with rare or high-quality diamonds and other precious stones (rubies, sapphires, and emeralds), the overall value of the piece will probably be higher.

Are diamonds really a ‘girl’s best friend’?

Diamonds priced at mid-range level have not appreciated in value over recent years; in fact, they have decreased in price. According to NB Diamonds, natural diamonds of average to good quality could drop further in value (subject to market fluctuations). Premium and rare diamonds could see an increase because of high demand and limited supply. Lab-grown diamonds are said to gain even more popularity and potentially rise in value.⁵

The prediction that standard quality diamonds may drop in price even further is echoed by Mark Smith from Quastel Associates.

“Mid-range diamonds have dropped in value by as much as 30% because of several factors, including geopolitical landscape, younger consumers being much more aware of how diamonds are sourced, and a decline in marriages.

However, jewellery that is set with diamonds and other precious stones from iconic brands such as Cartier, Graff, Bvlgari, Tiffany & Co., and Van Cleef & Arpels will usually retain its value because of high demand for these brands.”

Rare, coloured diamonds such as red, blue, or pink might have increased in value, so it is worth getting them assessed through a valuation expert. In some cases, a clear white diamond with excellent clarity can command a high price, and the higher the carat, the more expensive the stone. While yellow diamonds are not usually as expensive as their coloured counterparts, if the stone is a vivid, bright yellow, it can often be more expensive than a white diamond. The rarest coloured diamond is red and there are only 20 to 30 known to exist in the world.⁶

Similarly, luxury watches can also feature coloured diamonds, with brands such as Graff and Chopard designing timepieces to include these stones. Even if your watch has white diamonds set in a gold and platinum setting, check your insurance coverage and ensure it is up to date.

Has silver sky-rocketed?

When demand outstrips supply any commodity rises in value. Silver has surged in recent years with increased investor interest, and people making silver their entry point into the market.

Like gold, silver is traded globally in troy ounces. In early January 2017, silver was trading at around £13. Remaining steady until 2024, by the end of January 2026, silver prices had climbed to around £85.89.⁷

Bearing this increase in mind, solid silver dinner and tea sets, cutlery, Victorian coffee pots, and Georgian snuff boxes could be worth a lot more than previously calculated. As with jewellery and luxury watches, silver objets d’arts are at risk of being underinsured if you have not covered them with the help of your broker at the correct level.

Mark Smith stated:

“Silver has increased dramatically but sadly history is being lost because it is being melted down. Compared to gold, silver takes up more space. Think of a Victorian dinner set versus a Krugerrand. However, it is a more volatile precious metal than gold and can drop in price by 5% to 10% in one day.”

While it is often worth more melted down, silverware by famous makers such as Paul Storr, (at his most celebrated during the first half of the 19^th century); Paul de Lamerie (called the “King’s silversmith” in 1717) ⁸and 20^th century silversmith, Omar Ramsden, who worked in the Arts and Crafts tradition and was influenced by the Art Nouveau aesthetic, holds its value and is highly desirable.

Update jewellery insurance

If you own precious metals in any form, including in jewellery and watches, talk to your broker today. With global markets potentially set to see a further increase in gold, silver, and platinum, your insurance coverage needs to accommodate any increase in value.

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