The rising price of gold and the impact on your insurance

The price of gold reached an all-time high in mid-April, peaking at USD3500 per ounce. Though exposed to volatility, it is still roughly 33% higher than it was this time last year. So, what’s causing this increase? 

Why is the price of gold rising?

Whilst 2025 has been a record-breaking year, gold has been steadily increasing in value over the past 12 months. This can be attributed to several factors.

Geopolitical uncertainty

As tensions rise between the US and its key trading partners, along with unrest in the Middle East and the Russia-Ukraine conflict, investors are increasingly turning to precious metals for portfolio protection. Concerns over tariffs, currency fluctuations, and market volatility highlight the need for stability. In this climate, gold is often seen as a reliable source of value, prompting a surge in demand from individuals and institutions looking to mitigate risks.

Economic instability

Concerns about a global recession and persistent inflation have driven up gold prices, as investors seek a haven amid economic uncertainty. Additionally, the US dollar's decline to a three-year low against major currencies has further contributed to rising gold prices, largely due to fears surrounding trade policies and potential tariff escalations under the Trump administration.

Central bank purchases

In recent years, central banks globally have significantly increased gold reserves, driving up demand and prices. This trend intensified after the freezing of Russian central bank assets in 2022 following the invasion of Ukraine, prompting nations to secure financial stability through gold. As central banks diversify away from volatile currencies, gold's role in national financial strategies solidifies.

The impact on your insurance

Gold's rising value can significantly affect the amount of insurance coverage you need to purchase, particularly if you own specialised items like jewellery or investment-grade pieces like coins and gold bars. Regular appraisals are essential to ensure that you are not underinsured. While some policies may include automatic inflation protection, this is not typically the case. Our specialists recommend taking the following steps to ensure you have the suitable insurance in place:

• have your assets appraised every two to three years, or after significant market changes
• maintain a detailed record of your collection that includes receipts, appraisals, and descriptions for each item
• review your insurance cover limits with your insurance broker to ensure that your items are insured at their current appraised value
• if you acquire any new pieces, be sure to review and update your policy limits accordingly.