Market Drop Continues

The stock market continued its bumpy descent amid concerns of a recession.  Silver though held fairly steady at just under $16 per ounce.  At times like this, I try not to watch the silver market too closely, unless I have an order pending with one of my suppliers.

For silver jewelry manufacturers, they usually base the cost of an order on the replacement cost of the silver.  In other words, if you place your order and silver is at $14 per ounce, then it jumps up to $16 per ounce before you pay, you will usually be charged based on the replacement cost of the silver at the time you pay.  In this case, if you hadn't paid until silver hit $16, you'd be charged based on that amount.

This system can cut both ways.  If I think silver will be climbing, I try to pay as soon as possible, even if I don't know the final total.  Sometimes I'll just wire some $$ to lock things in.  I know of at least one wholesaler that buys silver futures in order to lock in prices.  This can be an inexpensive way to leverage against volatility.

See a broad range of silver jewelry information at http://www.wholesalesilverjewelry.net.

Spot Silver Drops

With bad economic news a daily event and fears of a recession hanging over everyone's head, it's no wonder we have seen a run up in silver and gold prices.  Precious metals are typically the place people head when the going gets tough, and higher demand equals higher price unless there is more supply added to the stream.  

As a silver jewelry wholesaler, the price of silver is a pretty big variable in my cost of doing business, so seeing it continue to climb after a couple of years of relative calm is disconcerting.

Funny too that it happens just before the annual Tucson Gem show, when major silver and jewelry suppliers come together for the largest jewelry show in the world.  More on this as it comes closer...