Inherited ring - mindblowing insurance valuation - wtf do I do?

[BitShellshocked]

Have namechanged for this and it's not a stealth boast. My mind is a bit scrambled and I'd appreciate the thoughts of the MN hivemind.

I was recently given a few bits of jewellery that had belonged to my grandmother. All v. nice pieces but as far as we knew worth maybe a couple of thousand altogether, max. Anyway, our house insurance is due for renewal so I took them to a local jewellers to get an up-to-date valuation, more out of curiosity than anything else.

3 of the 4 pieces come to around 8k altogether. Lovely surprise! The 4th has had an insurance valuation of 50 fucking K. My mind is completely blown by this and I'm honestly not sure what to do for the best. I had no idea.

The jeweller says that the insurance premiums are likely to be significant, possibly too much for me to afford easily! That amount of money would make a big difference to us if I sold - could give ds a big lump sum towards a deposit or pay off a good chunk of our mortgage. We've talked a lot recently about financial planning for retirement etc and this would really help.

My gut says I don't want to sell it, but am I being completely ridiculous if otherwise it's just going to sit in a safe, locked away? WWYD?

I pay 1600 annually for 90k worth and have to have it in a safe.

I reckon the jeweller wants you yo sell it them and that the piece of jewellery you have is worth a lot more. Go get a second opinion.

My engagement ring is a high quality 3 carat natural diamond, although it's an antique stone, not a modern round brilliant. I have to have it valued every year for insurance and the last several years it's been around £65,000, so I'd say OP's valuation is about right.

I'd very sentimental about things like this, but I'd sell. I wouldn't sell something worth a couple of grand, but 50k is a significant amount of money and would be of huge benefit. Plus, when you factor in costly insurance premiums, it's a no brainer.

Selling price and valuation price are VERY different things.

Diamonds you should reckon on getting around 30% back of what it costs to actually buy, and a valuation will be a significant percentage on top of that to cover for replacement. I would get a number of quotes but be prepared for a very big difference between valuation and what you are offered.

My friend has lots of very expensive jewelry and she keeps it in a safe at a bank. When she wants to wear something, she takes it out the day before and returns it when she's finished with it. Or wears it constantly.

If you want to sell a diamond ring it might be worth getting a diamond certificate for the diamond as it's so large. The difference in price between different quality diamonds is massive. If you know you've got a good diamond then it will be much easier to sell at a higher price. It would cost a few hundred pounds. They use different types of certificates around the world.

info here

Keep in mind insurance evals are usually higher than what items actually sell for. You could try taking it to a top auction house like sotheby's or christie's, but the commissions might be around 30%.

Argh. Read further - sorry for the redundant post.

Selling something of increasing value for something that will only decrease in value would be silly and unwise.
Using it for your mortgage, real estate that will increase in value, is wise.

Why do so many husbands want to waste money on things with decreasing returns?

Definitely sell it and enjoy the money

We used to have safe. Nobody was getting into that thing or carrying it away easily because it weighed a lot. Cheaper than insurance for small jewellery pieces. It was relatively small and could be easily stowed in a wardrobe with a couple of strong men and a trolley.

I recently sold a relatives ring that was a 3 carat brilliant cut diamond with diamond shoulders in a platinum set. The local jewellers valued it was way more than the auction house and what it actually sold for.
Either way for us it was either let it sit in a drawer and never use it or sell it so someone got to enjoy its beauty so it was a no brainer.

Yes, absolutely don't sell it for a campervan which is the opposite of an asset. A campervan costs you money in petrol, insurance and maintenance while steadily depreciating in value. There is no way that I would be selling my family heirloom for some depreciating lump of metal for my husband. My circumstances are different but I have kept an inheritance as my own separate property and my husband has never asked for any amount to be spent on him. I think the insurance on a ring is going to be a lot less than the insurance on a campervan. Just maybe I'd sell it and put it on the mortgage but, realistically, you will probably get about a third of the valuation. The really important thing is not to fritter the proceeds if you do sell.

It would take me all of 5 seconds to decide to sell - but then I am not the slightest bit sentimental. Think of it as a nice bonus gift from your GM.

I’d hide it all under the floorboards in a fireproof box.
Or put in a box at the bank

Oh my gosh it sounds wonderful!! Wear it!! Also I think unless you really have no money knocking about the jeweller is having you on about insurance. Might cost you a few quid per month (up to a 5er) to insure the 50k ring alone - just add it on to your insurance contents at home?

In your shoes I’d sell it. Something is only worth what someone will pay for it, so it’ll be less than that. I’d probably keep one ring, if I was going to wear it. If you aren’t, I’d probably sell them all to be honest. Unless you can afford to insure them and want to pass them to your children.

Sorry for your loss, I hope the money helps and you get close to what you expect.

I think in your shoes I would check there whether there are family members who might have opinions. If not, do you have to decide now? Can you put the ring aside somewhere safe for a year and meditate on what to do? Sometimes the answer becomes apparent.

I think it’s absolutely fine to sell it and pay down the mortgage. Maybe do something symbolic in your relative’s memory at the property incorporating the proceeds (plant a tree? buy a memorable but less expensive piece of artwork? install a lavish coffee machine?) so that you feel they are all around you every day rather than wearing a ring.

I agree about the caution over the campervan which in my observation tends to be a dream of one person which produces a lot of work for another person in the relationship or family.

It’s really quite difficult to lose a well-fitting ring with a securely set stone as long as you don’t do anything daft like take it off to wash your hands and leave by a sink somewhere.

3 carats is a very big stone. I think most people, including muggers, would make the same assumption as OP that it is a costume piece in all but the most monied circles.

Sell it and spend it on something that makes you happy - if that's paying off the mortgage, getting a campervan, or giving it to a dc to to get a house - it should just bring you joy!

This is kind of true. Some policies, not all, can penalise you for being under insured if you have valuable uninsured items in your home. The logic is that you are more likely to be burgled and the burglars may take other insured items and also do damage that will be covered in your insurance.

Before you sell, wait. The ring is part of the estate and subject to inheritance tax. You (should) be paying 40% if you've already hit the threshold. Someone once told me when there is a large estate, Hmrc will monitor close relatives for sale of large pieces for a year. I don't know how true this is.

I think you’ll regret it if you sell it

I'd keep it. The value will most probably go up over time.

Second, I'd get an actual quote from your household insurer.

If the quote is too large, I just wouldn't insure it.

She died 30 years ago.