Most US states charge sales tax on the sale of jewelry. Understanding jewelry sales tax by state is crucial as it varies significantly, with California having the highest rate of 7.5%. Oregon, Alaska, Delaware, New Hampshire, and Montana are the only states without a sales tax on jewelry.

If you’re purchasing an expensive piece like an engagement ring or an 18k gold necklace, even a small tax can quickly add up.  For example, with a large diamond engagement ring you could be looking at hundreds or thousands of dollars in addition to the item’s sale price due to the sales tax on diamonds.

To avoid paying more in sales tax, consider making your purchase online. Internet retailers that only operate online and other sellers that don’t have a brick-and-mortar store located in your state may be sales-tax-free. However, you may still be charged a use tax by your state.

The IRS treats platinum, gold, and diamond jewelry as a capital asset for individuals. If you purchase a ring or necklace that you intend to enjoy or use but later sell for a profit, you will owe capital gains taxes.

For example, if you purchase a necklace for $300, this price is its fair market value. If you sell it for more than $300, the profit from the sale is taxed. Your capital gains tax rate corresponds with your income tax bracket and can range from zero to 20%.

If you sell your jewelry for less than its fair market value, this is considered a capital loss. Any capital losses from the sale of your jewelry help lower your capital gains tax liability.

A jewelry insurance policy provides replacement coverage for any damage, theft, loss, or mysterious disappearance of your jewelry. Many jewelry insurance providers, like BriteCo, offer this coverage once you submit details about the item, including an appraisal from a certified jeweler.

After you provide the insurance provider details about your jewelry, you are offered a quote and can purchase the policy. BriteCo offers zero-dollar deductibles, so you won’t have to pay out-of-pocket to receive reimbursement for your jewelry. Compare monthly payments, deductibles, and other amenities each insurer offers to find the best policy for your needs.

When loss or damage occurs, you file a claim with your jewelry insurer to receive the replacement value of your item. The coverage limit of your reimbursement varies between insurers. Jewelry insurance offers more coverage than a jewelry warranty or homeowner’s insurance policy. Although many people think their fine jewelry collection is covered by their homeowner’s insurance, most insurers only pay for up to $1,500 per item. This is not enough coverage for anything like an expensive Tiffany jewelry piece.

Jewelry insurance coverage depends on your provider and the policy you choose. Most traditional jewelry insurance policies offer coverage for lost, stolen or damaged items. This typically includes theft coverage as well.

If you obtain jewelry insurance through a general insurance company, your policy likely won’t cover mysterious disappearance. However, if you get coverage from a jewelry-specific insurer, your policy may cover this event.

Traditional jewelry insurance providers like Jeweler’s Mutual offer coverage for 100% of your piece’s insured value. However, if you compare this to BriteCo’s offer of 125% of your jewelry’s insured value, you can find better coverage for your pieces.

BriteCo jewelry insurance boasts a 5-star coverage rating which gives you complete peace of mind for your high-value jewelry. With a jewelry insurance policy from BriteCo, your coverage includes:

• 125% of its appraised value
• Automatic value updates each year
• Worldwide coverage
• Coverage on loss, theft, damage, and mysterious disappearance
• Zero deductible
• Option to pay monthly or annually
• Limited adverse claims impact
• Discount for safe storage
• Preventative maintenance on worn, bent, or broken prongs

According to a recent BriteCo survey, 59% of people who purchased a jewelry insurance policy filed a claim within the past decade. This number suggests that losing or misplacing jewelry happens often. It also indicates that if you own expensive or unique jewelry, it is beneficial to obtain insurance coverage for your piece and understand how to file a claim if the undesirable happens.

With BriteCo, filing a claim for your lost jewelry is simple and takes about five minutes. You’ll start by visiting our claims page and following the convenient prompts.

These prompts ask for your policy number with BriteCo and the details about the piece. Once you fill out the required information, our claims team will check in with you and start a repair or replacement for your item.

Unlike other jewelry insurers, BriteCo doesn’t carry a deductible. You don’t have to pay an upfront dollar amount to process a claim on your lost or missing piece. BriteCo also automatically updates the value of your jewelry each year, so you don’t need to worry about your claim fulfillment not meeting your jewelry’s most up-to-date value.