The changing value of luxury jewellery and watch collections

Whether you prefer fine watches or stone-encrusted jewellery, growing a collection can be a joy. 

But if you have a cherished piece or collection, do you know its value and can you be certain it is properly insured? 

The value of such collections can be surprisingly unpredictable, making regular valuations essential.

Without regular valuations, you could run the risk of underinsurance, which is when the amount you’re covered for is less than the cost of rebuilding, replacing, or repairing. In this article we look at how the value of luxury used watches and jewellery have recently changed - and what it means for collectors.

The best watches remain in demand

Luxury brands are exclusive with the supply of their watches, which has previously led to a demand in the second-hand market. Customers can often face long waiting lists for sought after pieces. After peaking in 2022, watch prices on the secondary market have since fallen. 

Alastair Meiklejon, senior valuer and wristwatch specialist at Doerr Dallas Valuations, one of NFU Mutual's trusted valuation partners explains: “Following the huge market rises that we saw during the pandemic, it was inevitable that prices would drop. But watches are still selling, and more people are growing their collections, with watches being more affordable than any time since 2020.”

Prices could continue to fall, Alastair says: “The market has not reached the bottom yet - but when it does it will hit the less desirable models”. 

Meanwhile, even in a falling market, there are some watches that do a better job of holding their value. Alastair says: “There is still a huge premium to pay in some places for pieces that have always been traditionally good performers - such as a standard Rolex Submariner Date, Rolex Daytona, Audemars Piguet Royal Oak, Patek Philippe Nautilus and all the usual suspects of the higher echelon of the desirable watch world.”

Volatile jewellery prices

Collectors of precious jewellery may not be aware just how much the prices of some raw materials have fluctuated in recent months and years - among them, diamonds.

Mark Smith, director at valuation specialists Quastel Associates, says: “Diamond prices, especially some larger diamonds, have come down by as much as 30-35% in the last year.” 

Mark explains that concerns about the global economy's health have partly contributed to the decline. But the biggest reason for the fall in diamond prices is likely to be the impact of synthetic diamonds on the market. “Lab grown diamonds have reduced in cost considerably and can now be made with excellent colour and clarity within only a few weeks, compared to the months it used to take.”

Whilst diamond prices have dropped, some jewellery values and prices have leapt higher, partly due to the increased cost of raw materials such as gold. The gold price reached an all-time high at the start of 2025 due to factors including geopolitical instability.

The importance of valuations

If you own a cherished collection of fine watches and jewellery, but aren’t aware of how prices have changed recently, then you may not have the right level of insurance. This means that if your pieces were lost, stolen or damaged, then you may be required to contribute to the cost of replacement.

Underinsurance may currently be a particular risk in jewellery containing gold. “We see a fair amount of underinsurance for items with high gold content”, Mark from Quastel Associates says. 

“The most important thing about having a jewellery and watch valuation is having documentary proof completed by a qualified professional valuer, which in the event of loss or damage, would enable the client to easily make a claim.”

At NFU Mutual we understand the need to keep your precious items protected. Our Bespoke Home Insurance is specially designed to cover high-value homes, as well as high-value belongings such as jewellery or watches, which may not be fully protected by a standard home contents insurance policy.

We work with carefully selected and trusted valuation partners, who can, for a fee, provide a valuation for your collections - offering you the peace of mind that your most valuable possessions are in safe hands.