Money News

One in ten Brits has more gold than savings

Wednesday 19 October, 2011

By Martin Fagan

Increasing numbers of Brits are hoarding gold rather than saving cash

More than one in ten Brits owns a stash of gold valued greater than any cash savings, according to new research by esure home insurance.

The research found 14% of Brits have bought an item of gold as an investment in the past year whilst 6% have swapped treasures for cash at a "bling and buy" party.

The most popular items "gold-rush" Brits own are rings (68%), closely followed by necklaces (46%) and bracelets (31%). Of those items, nearly two-thirds (62%) were received as gifts, while almost a fifth (16%) were treasures inherited from friends or family.

Londoners were the most opportunistic when it comes to gold, with 27% of those surveyed buying an item of gold in the past year as an investment - the highest of any region polled.

However, 72% of homeowners have never had their gold items valued, placing Brits in danger of being grossly underinsured if their jewellery or other household valuables were lost or stolen.

Despite this, more than one in ten Brits undervalue their gold stash at three times less than the cost to replace it - with nearly two-thirds (61%) admitting they do not make the connection between the rising gold price and the treasure trove they have in their home.

"Dealing with lost or stolen possessions is stressful and upsetting at the best of times, but discovering your Aladdin’s cave of gold is underinsured makes the situation even worse,” said Nikki Sellers, head of home insurance at esure.

"To avoid unnecessary hassle, homeowners should ensure they revalue precious jewellery or costly household items - whether made from gold, silver or diamond - to avoid any disappointment should anything unfortunate happen."