It should come as no surprise that rising silver prices are having a significant impact on the cost of making sterling silver jewelry. Expect this trend to continue in the coming months and even years.  China has now entered the silver market as a full global player no longer having to purchase silver futures through other avenues.  This will guarantee the long-term increase in silver prices.

On the one hand, I am glad to see the increase in silver prices.  My husband manages our finances and he had the foresight to purchase large quantities of silver and gold in our retirement accounts almost 3 years ago when it was trading around $15/oz.  On the other hand, the increase in silver prices has had a significant impact on my business at Beaded Royalty where I sell sterling silver beaded jewelry.  When I started my business in 2006, silver was $8/oz. It closed at $40/oz on Friday.  Ouch.  Here is an 11 year chart of silver prices:

Of course I (and my competitors) have increased prices to compensate for the increase in silver prices.  However, it goes without saying that people are purchasing less sterling silver jewelry as the price continues to rise.  I am sure there are jewelry designers who have opted to use silver-plated beads in place of solid sterling silver to save money.  I have decided against that avenue.

My business has always centered around custom sterling silver jewelry fit for a queen.  How could I change that now??  No, my solution is a bit different.  When I started my business, I offered all single strand bracelets at the same price for simplicity. I have now opted to lower the price on my pieces that contain primarily Swarovski crystals, increase prices on the pieces that contain exclusively sterling silver beads and maintain the prices for pieces that are a good mix of sterling silver beads and Swarovski crystals.  Have you found o ther ways to save money in this rising silver market?  I would love to hear about it!