What’s Going On With The Silver Prices?
If you’re a retailer trying to source silver jewellery at the moment, it’s difficult to ignore the rising prices. Although tough global economic times means that the cost of jewellery is inflated anyway, the silver price itself has gone through the roof.
For a new business starting out, this may feel overwhelming and like a poor time to get into the industry, but the higher prices shouldn’t be seen as a deterrent. A higher cost of silver should evidence it’s value in the market. The landscape will continue to change, and therefore to support you, we’ve designed a guide on how to adapt to the changes.
What Do Rising Silver Prices Actually Mean?
The cost of silver has gone up, that’s undeniable. What seems to be in debate though is what this change means for UK jewellery businesses.
Ultimately, customers haven’t stopped buying silver jewellery, they’re just now buying with more intention.
Silver itself holds a significant value that historically has appreciated over time. It is a recognised and trusted precious metal, with a value that translates globally. The price rises won’t lower demand, they just require that businesses make smarter sourcing choices.
Where Do New Buyers Usually Go Wrong?
Well to begin with, many first-time buyers and new retailers will often rush decisions, and purchase without adequate research.
Without proper research of the demand for your product, rushing a decision may result in overbuying pieces that could become difficult to sell. On the flip side, deciding not to restock an item due to fear of rising costs may result in exposing yourself to higher costs later, and ignore your customer demand.
Ideally you want to sit in the middle here – try to source lightly, plan earlier, and choose adaptable ranges that give you flexibility in your selling options. Underpin all of this by doing your research!
Here Is The Sourcing Strategy That Works Right Now
Opt For Lightweight
Lightweight jewellery is doing the heavy lifting in today’s market.
Lightweight, yet heavily on-trend, pieces are propping up today’s market.
Consider how you’re able to choose items that have a lesser quantity of silver in them, but still maintain their relevancy in today’s market by remaining on-trend.
Fine chains, tiny studs & hoops, stackable rings.. these are all items to consider that will provide the low weight required to make a healthy profit, while being popular designs with today’s market, to ensure demand.
By opting for source lighter designs, you’ll reduce risk in your stock, and maintain legitimacy as a silver retailer.
Pay Attention To Clearance Pages
This feels obvious, but is commonly overlooked by retailers as a serious option. Clearance sections can be a goldmine for retailers. These are items that tend to have run their course for the wholesalers, but that doesn’t mean they’re of no value! For example.. you’ll often find Christmas stock in January. Buying seasonal stock from clearance pages is a great way of saving money and forward planning.
At SilverJD, they’re known for having a fairly extensive clearance section, where you can find hidden gems from older collections that still have high purchase potential. They’re great items to test and try, experiment with the market and research future trends. Clearance items are also great for running promotions on, as a way to get buyers to your website/shop, before marketing higher priced items to them.
Intentionally Take Advantage Of Volume Discounts.
The point of volume discounts are to mutually benefit both the retailer and wholesaler.
By studying market trends over a long-term period, you’re able to make informed decisions and take risks in overbuying. This business strategy works wonders for stability in knowing you’re securing a price-point that won’t elevate when you need to restock.
As the silver prices continue to rise, it’s a safe bet that your stock is unlikely to immediately depreciate. SilverJD’s discount pricing structure helps to support businesses that are trying to plan ahead and cut costs. The point is not to overstock, but to stabilise your business model by locking in prices.
Trends Are On Your Side
In recent years, market trends have been erring towards retailer favourability. With layering a dominant and growing style that has captivated the market, we’re finding that this presents retailers with a fantastic opportunity to market lighter and more delicate pieces to consumers that are wanting to layer the pieces with their own jewellery.
These styles don’t rely on a strong and heavy metal content, and instead mean that retailers can mark up lighter items in line with current trends.
Why Heavy Jewellery Is a Big Risk
The heavier a piece you source as a retailer, the higher the upfront cost with be. This is a fact. The metal is expensive, and by choosing pieces that are heavily reliant on a favourable silver price, you’re exposing your business to risk.
In contrast, lighter jewellery is easier to replenish – through substantially lower delivery costs. There is a far lower bar for consumers to commit to as well, since the lower value and light weight of the item fits modern shopping habit trends.
By choosing to opt for lighter designs, you’re NOT compromising on the quality or integrity of your jewellery, but are merely responding to the market behaviour and current trends.
Keep It Simple!
Strong branding and simple lines are fundamental in your success in the current climate. After all, would you trust a restaurant with 200 items on the menu more that you would 20? A refined and considered collection will brilliantly communicate your brand to consumers.
Sticking to light and simple designs such as initials, small studs, hoops, pearls and geometric shapes will add versitility to your offering, and keep your business relevant.
Retailers who anchor trends to reliable basics are better positioned to absorb price shifts without disruption.
The Takeaway
With rising silver prices, sourcing decisions are far more visible, but not at all more complicated!
Throughout this article, SilverJD is referenced as an example of a UK-based wholesale silver jewellery supplier to illustrate how certain sourcing structures operate in practice. This includes factors such as holding ready-to-deliver stock, offering lightweight silver designs, separating clearance inventory, and applying tiered pricing based on order volume.
The broader point is not about where to buy, but how to buy. Clear pricing, predictable availability, and appropriately weighted designs help businesses make informed sourcing decisions when silver prices are less stable.
