Picture Source AAARRRGGGHH!!! Was that you screaming when you reordered and found out what silver costs now? If it wasn't you, it might well soon be according to the silver price graph below.
It's a huge jump of nearly 30% in the last month or so and it's still going up. The price of silver is now increasing at a rate faster than that of gold!
Last Friday, it was US$23.09 per ounce up from about $17-18. But some commodity analysts are predicting silver prices will hit US$100 either this year or next and US$250 by 2015. That is a staggering increase of over 1000%!
The situation comes as no surprise to those in the know. Back in 2007, Kevin Kerr (CBS Marketwatch) predicted, "Due to current supply/demand trends, the amount of silver above ground is projected to shrink to a critically low level in 2010. As supply shrinks, prices will keep rising steadily to new highs. Many in the investment world are unaware of this part of silver's story. Industrial demand has been outstripping mining supply for the past 15 years, driving above ground supply to historically low levels." The world had been relying on inventories and government stockpiles to get through the past 15 years but now they are exhausted.
It's like the issue we face with oil. We are not running out of oil just yet but we are now forced to get it from more difficult to reach sources. So it is with silver. Unless new mines are discovered, we are stuck with having to pay more.
Silver is not only used as money and for jewelry. It has many industrial uses. We need it for mirrors, medical devices, as catalysts in chemical reactions, in photovoltaic cells for solar-power technology, in rechargeable silver-zinc batteries, in household appliances and in high tech products such as cell phones and TVs. Many sharp investors will also be buying silver which will, in turn, fuel increases.
It's not looking good for jewelry artisans who work with silver.
WHAT TO DO
1. Raise your prices
If you sell jewelry, then prices will start having to go up according what you have to pay for the material. Otherwise, you won't be making any profit.
2. Buy in bulk
Whenever possible, buy in bulk whether or not you make jewelry for sale. If you work with a lot of silver, this makes sense.
3. Switch to alternatives
Some near silver colored metals include aluminum and stainless steel. Or you could use silver toned coated copper wire. For metal beads and charms, pewter or zinc might make more sense.
However, whether the buying public want alternatives is another matter. Some people will only go for sterling or fine silver jewelry. The question is, are they willing to pay higher prices in the future?
Global Resource Alert
Why the Silver Price is Set to Soar
More metal posts :
- Copper is not just for Jewelry
- There's Gold in Them Teeth
- Cadmium in Children's Jewelry from China is worse than lead
Original Post by THE BEADING GEM
Jewelry Making Tips - Jewelry Business Tips