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Insurance warning over gold price

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Industry experts have suggested that homeowners should update their contents insurance cover as it may not be adequate due to the soaring prices of gold and silver.

With around six million households in the UK estimated to be underinsured, home insurance customers are also advised to have their items revalued as they could be worth a lot more than initially thought.

Updating their home insurance policies could help them get the correct value for their treasured possessions in case their items get lost or stolen.

The rising prices of jewellery, gems and other precious metals in homes across the country have left owners vulnerable to thieves and burglars, leading to an increase in home insurance claims.

Gold prices have been constantly increasing, with figures showing a rise by 50% in the past 12 months, while silver costs nine times as much as it did a decade ago.

Speaking about the soaring prices of gold, Philip Diaper, the manager of London's oldest pawnbroker, Suttons & Robertsons, said: "The price of gold has just run away. A common garden gate bracelet 10 years ago would have melted for £65; today it is worth £350."

© Press Association 2011