New research shows that over a third of Brits (38 per cent) see buying gold as a better investment than putting cash in savings. This leaves their homes into becoming underinsured Aladdin caves.
The research commissioned by esure home insurance, found that 14 per cent of Brits have bought an item of gold as an investment in the past year whilst 6 per cent have swapped treasures for cash at a “bling and buy” party. More than one in ten Brits (11 per cent) own a stash of gold valued above any cash savings.
Almost three quarters of British homeowners (72 per cent) have never had their most precious gold items valued, leading to Brits in danger of being grossly underinsured if their jewellery or other household valuables were to be lost or stolen.
The most popular items belonging to “gold-rush” Brits are rings (68 per cent), closely followed by necklaces (46 per cent) and bracelets (31 per cent). Of those items nearly two thirds (62 per cent) were received as gifts whilst almost a fifth (16 per cent) were treasures inherited by friends or family.
Despite this, more than one in ten Brits (11 per cent) value their gold stash at three times less than it costs to replace it – with nearly two thirds (61 per cent) admitting they do not make the connection between the stock market and the treasure trove they have in their home.
Alarmingly, over a fifth of Brits (22 per cent) think the value of gold has decreased over the past decade with just one in ten (10 per cent) correctly knowing the value of gold has soared by more than 300 per cent. Over two thirds (67 per cent) admit they are not sure what the current price of gold is.
Londoners seem to be the most opportunistic when it comes to gold with over a quarter (27 per cent) of those surveyed buying an item of gold in the past year as an investment – the highest of any region polled. 16 per cent of Londoners have also been to a “bling and buy” party in the past twelve months to buy or sell gold.
The survey also revealed that 57 per cent of homeowners admitted they had no idea how the rising value of gold may impact their home contents policy. Over half of Brits (57 per cent) have never had their engagement or wedding rings valued, with those who have waited an average 8 years before doing so.
Over half of Brits (54 per cent) have not updated their home contents insurance policy in the past year despite forking out £327,000 on hi-tech gadgets. Whizz kid Brits’ most popular gadget is a laptop (34 per cent) closely followed by a new TV (28 per cent).
Nikki Sellers, Head of home insurance at esure, comments: “Dealing with lost or stolen possessions is stressful and upsetting at the best of times but finding out you are underinsured for your Aladdins Cave makes the situation even worse.
“To avoid unnecessary hassle, homeowners should ensure that they revalue precious jewellery or costly household items- whether they are made from gold, silver or diamond – to avoid any disappointment should anything unfortunate happen.”
Regional Breakdown
The Welsh are the most in the dark when it comes to the value of gold with a whopping 78 per cent admitting they have no idea how the value of gold may impact on their home contents policy. A whopping 76 per cent of Scots admit they are not sure what the current price of gold is and 57 per cent of people from the West Midlands agree that they do not make the link between the stock market and gold possessions in their own home.
Gender Breakdown
Nearly a quarter of women (24 per cent) have purchased imitation gold jewellery in the past year because they can’t afford to buy the real thing, this compares to just 17 per cent of men. A whopping 72 per cent of gold items owned by women are gifts – in comparison, gifts make up just half (50 per cent) of men’s precious items.
Source : esure
