Jewelry: The Valentine’s Day Cash Cow
Valentine’s Day has commonly been referred to as the Hallmark Holiday; however Americans are traditionally shelling out large sums of money on more than just greeting cards. If fact, studies have estimated that Americans alone accrue a Valentine’s Day expenditure of roughly $18.6 Billion. According to a Statista study, dining out, Floral Arrangements, Candy, and Jewelry are some of the highest demanded products by Valentine’s Day consumers. Of these four primary purchase categories, which net the highest Valentine’s Day sales figures, only one has longevity and would be construed as an asset.
Dining out on Valentine’s Day may last a few hours and provide temporary emotional relief however it is ultimately fleeting, as is the irresistible chocolate gifts displayed in kitchens across America. Floral Arrangements are beautiful and the aroma can lift spirits, but again the fragrance fades and the petals perish after a few weeks. Jewelry on the other hand, makes the most financial sense from a Valentine gift standpoint.
According to Time magazine, consumers spend around $4 Billion on Valentine’s Day Jewelry. That is an eye-popping number and is surely associated with the amount of marriage proposals that occur on the Day of courtly love. According to CNN, an estimated 6 million people plan marriage proposals around Valentine’s Day, which surely drives up the demand for Jewelry. I’m not inferring that Jewelry is an essential part of Valentine’s Day, but rather expressing that it is a substantial part, as well as the most logical gift option of the traditional top tier products purchased due to prolonged existence and sustained value. But as Americans accumulate jewelry this sustained value also garners the need to for perpetual protection.
Many Americans overlook the risk of compiling Jewelry from an asset standpoint. The age old adage, “Good things come in small packages” is certainly relevant in terms of Jewelry. When a tiny product is worth the equivalent of a vehicle, it is important that the full value of even the most modest jewelry box be recognized. For this reason, I always recommend February as the ideal month to not only consider a Valentine’s Day purchase, but more importantly assess the current value of your jewelry collection.
As the value of your jewelry collection increases, considerations for additional protection on your sustainable assets should also increase. Contrary to popular opinion, your jewelry collection may not be covered by homeowner’s insurance. Insurance companies cap the amount of jewelry coverage on standard policies to around $2500, a value which is easily surpassed. And even in the case where the jewelry value is equivalent, most policies don’t cover mislaid or misplaced jewelry. This means if your engagement ring is lost, you may be out of luck.
If a new Valentine’s Day Jewelry purchase has sprung the value of your families jewelry box over the traditionally covered $2500 amount, we strongly advise that additional protection be put in place in the form of an Inland Marine Jewelry insurance policy. In addition to enabling consumers to list all high value jewelry, coverage can be extended to furs as well as fine art, and will offer protection of your jewelry in almost all circumstances. A Valentine’s Day Jewelry gift may be a more sensible choice than flowers and candy; however additional attention should be focused on protecting the longevity of your new asset.
Moore Resources is an Independent Insurance Agency located in St. Petersburg, FL and offering Homeowners Insurance, Auto Insurance, Personal Insurance and Business Insurance. Our reach extends beyond the Tampa Bay area to the entire state of Florida. Moore Resources has regionally been dedicated to serving the local residents of Pinellas, Hillsborough, Polk, Pasco, Manatee and Sarasota counties; including St. Pete, Tampa, Clearwater, Bradenton, Brandon, Dunedin, Gulfport, Lakeland, Largo, Lutz, Palm Harbor, Pinellas Park, Riverview, Ruskin, Seffner, Seminole, Temple Terrace, Tierra Verde, Town n Country, and the Gulf Coast Beaches.
Please remember that the purpose of this blog is to present general information only. It does not interpret specific policies or coverage. In order to obtain detailed information regarding your insurance, contact a licensed insurance agent.