Wholesale Silver Jewelry Prices Spike!

Silver prices, mirroring a rise in petroleum costs, have spiked over the past week, rising from the low $16's per ounce to over $17. As I've mentioned before in this blog, precious metals have been tied to the price of oil for the past several years.

As we recover from the current economic downturn, it seems logical that demand for oil will increase as well. At the Tucson Gem Show, I spoke with several large silver wholesalers from India and from China about this issue. The consensus was split, with one camp predicting higher prices and the other calling for a reduction.

Knowing what we know about the world economy and that great driver of commerce, China, I am looking for prices to rise in the long term, probably higher than we have seen in recent history. You might remember two summers ago when oil neared $200 per barrel, when the world economy was really rocking. I think we'll see a return eventually to those kinds of numbers if not this summer, then by next summer for sure.

As prices rise, I'll be posting tips and direction for dealing with higher silver prices. Stay tuned for more info as the situation develops! For more info and articles on wholesale silver jewelry, visit my website: Whirled Planet Wholesale Silver Jewelry.