May 5, 2011

The Silver and Gold Market Explained

This chart shows today’s silver price. You can also click to see the gold price. The price of metals changes daily and everyone in the jewelry industry is affected (sometimes positively and sometimes negatively). This chart gives you the cost of the metal per ounce.

Wire, chain, sheet, blanks and all findings are affected by the daily price of sterling and gold. Here at Beaducation, we do not change our prices daily just because the price of sterling or gold goes up, but when we receive our new shipment from our vendor and open the box, the invoice inside the box is based upon the day our vendor shipped the product to Beaducation. They charge us according to the price they paid for the silver, the day they purchased that silver. We then, have to alter our prices, based upon the increase they have charged us.

This affects you because you may be waiting to purchase 30 sterling silver bird charms and we only have 5 on our site. If we have not ordered these in three months, the price listed online may be quite low. When we receive our new supply of 400 birds, the silver market may have gone up since our last order three months ago. The vendor then has to charge us more. We will list the new birds on our site at 50 cents or even $5 more than the previous price, depending on what they have charged us the day they shipped it.

The overnight jump is because we do not alter the price gradually each day. Only when we receive our new shipments do we change our prices. When the price of silver or gold goes down and we receive a shipment, our vendor charges us less and we then reflect that on the site as well. Basically, if you look at this chart and see that the price of silver is going up and up, it is a great idea to buy what we do have in stock, because it is a good indication that when our new stock comes in, the price will be higher. We don’t want it to be, but we have to reflect what we are charged.

It is a good idea to let your customers know about the metals market. You can even have the link to this chart on the back of your business cards. If they know that you are paying more for your silver or gold materials, they will have a better understanding of why your prices are going up as well. It is important to make sure that you do not just absorb the cost and forget to pay yourself for your design and labor because you can’t be working for free!

We here at Beaducation, we truly appreciate you taking the time to read about the metals market, because we always want our products to be affordable and competitive. Every morning we look at the metals market, we are crossing our fingers that we will see a drop, because we want you to be able to create beautiful jewelry for the best prices we can provide.  

For more information on the Metals Market, Lisa has some informative blog posts. Click here to read more: Metals Market on the Rise Again 2010, Rising Metals Market...What's it all about? 2008.

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