The changing value of luxury jewellery and watch collections

Your favourite timepiece. A necklace chosen to mark a milestone. These treasured pieces hold memories, but their true financial value is often far greater than owners realise, especially in a market that’s shifting faster than many collectors expect.

Luxury watches and jewellery can rise or fall dramatically in price, leaving many collectors unknowingly over or underinsured.  

If your policy doesn’t reflect today’s values, you may not be fully protected should the unexpected happen.

At a glance 

• Prices of luxury watches and jewellery have changed significantly in recent years.
• Diamond prices have been affected by global economic trends and changing consumer preferences.
• Rarity and craftsmanship are increasingly driving demand for diamond jewellery.
• Without regular professional valuations, owners risk underinsuring items that may now cost more to replace.

What this means for you: If you own fine watches or jewellery and haven’t reviewed their value in recent years, now could be a good time to check whether you’re properly insured.

A new chapter in luxury jewellery

The jewellery market has also seen striking volatility, particularly for raw materials such as diamonds. The Rapnet Diamond Index reported falls of up to 26% in 2025, driven by global uncertainty and reduced demand from major markets like China and India. Mark Smith Director from Quastel Associates notes this is shaping buying and valuation behaviour worldwide.

Demand, however, is rising for the exceptional. Natural diamonds, especially tinted stones, are drawing renewed attention, while lab-grown alternatives have sharply declined in appeal.

Liz Bailey, Jewellery Specialist at Doerr Dallas Valuations, observes:

"The high-profile engagement rings of 2025, coupled with the overarching desire for the rare, unique and coveted has shone a spotlight on lapidary, carving and manufacturing."

Harvey Cammell, Global Director from Bonhams reports sustained interest in iconic Art Deco jewellery makers such as Cartier, Van Cleef & Arpels and Boucheron – names synonymous with rarity, quality and heritage.  Bonhams are seeing the market continuing to demonstrate a strong appetite for coloured gemstones, coloured diamonds and rare antique jewels, particularly signed pieces with provenance – jewels that capture the imagination.

When were the key jewellery pieces in your collection last professionally assessed, and could recent market movements mean their values have changed more than you realise?

A cooler market for luxury watches

After years of soaring premiums, the secondary watch market has steadied. Many models that once commanded substantial mark‑ups are now settling closer to retail prices.

Mark Smith, Managing Director at Quastel Associates, explains:

"The market for watches has changed. Where you used to see big premiums on the secondary market, now that gap has narrowed, and some models are selling for close to retail."

While mainstream luxury brands settle, independent makers are capturing collectors’ imagination. Doerr Dallas Valuations notes a move towards craftsmanship led‑ houses.

Alastair Meiklejon, senior valuer and watch specialist, says collectors are seeking

“artistic, mechanically profound, exclusive creations that justify their price.”

There are still standout exceptions. Harvey Cammell of Valuations at Bonhams, highlights the continued demand for the leading brands such as Patek Philippe, Rolex and in particular Cartier as the darling of the auction market – a trend bolstered by the recent Cartier exhibition at the V&A as well as Taylor Swift being photographed wearing a Cartier Santos Desmoiselle in her engagement photograph.

If you purchased popular models during the surge years, their values may now differ significantly from the figure listed on your insurance schedule.

Check your protection

• Have your items been professionally valued in the last three years?
• Were valuations completed by qualified specialists?
• Do your insurance limits accurately reflect current replacement costs?
• Are high value items individually listed?

Why this matters – and what it means for you

For collectors, fluctuating values mean that pieces purchased or inherited may now be underinsured without you realising. Should the unexpected happen, that gap can be emotionally and financially costly.

Mark Smith from Quastel Associates emphasises the importance of getting this right:

"It's not just about how values change, but about protecting yourself. Jewellery and watches are portable and vulnerable, so making sure you're properly insured is more important than ever.”

How NFU Mutual can help

Our NFU Mutual Bespoke Home Insurance is designed specifically for high value‑ homes and treasured possessions that may exceed the limits of standard cover.

At NFU Mutual, we work with trusted experts who understand high value collections, giving you confidence that the things you treasure most are properly protected, whatever the future brings. If you're unsure whether your current valuations reflect today’s market, our specialist partners can guide you and provide a valuation, for a fee, to offer you peace of mind. Contact your local Agent today.