Why Has the Cost of Silver Jewelry Gone Up?
Why has the price of silver jewelry gone up in the past year? Glad you asked. Some of our customers question why does our silver jewelry prices fluctuate. Our response is: for the same
reason the price you pay at the gas pump fluctuates from day to day. First and foremost, silver is a commodity just like oil, gold, gas, coal etc. When the prices of these commodities surge like they have in the last year, the price of raw silver will go right along with them. Sterling silver jewelry is comprised of 92.5% silver (thus the .925 stamp on all true sterling pieces) and 7.5% copper. The copper makes the silver more durable.Raw silver prices went from $12/oz a year ago to over $20/oz. Just in the last month have they had a steep drop from $18/oz to under $14/oz. Silver jewelry designer/producers do not make any more money by increasing the prices of our silver jewelry but are only recouping the increased costs of the raw materials. The majority of silver used to produce sterling jewelry in produced in either Mexico or Italy. A recent strike by a labor union in Mexico stands to increase local producer prices as well. Excerpt from Mining Journal article: Miners in Mexico held a one-hour walkout to support anti-government protests but metals production was not hit, the country`s mining chamber said. Some 20 sections of the union laid down their tools in the silver and gold-producing states of Guanajuato, Zacatecas and Durango for the first hour of each work shift, the union said. Mexico`s mining chamber said the walkout only affected some mines in the three states. "The one-hour stoppages ... were partial, with the majority of companies operating normally," Sergio Almazan, the head of the mining chamber, said. "We did not see an impact on production," he said. London-listed silver miner Fresnillo Ltd, one of the world`s largest silver producers, has mines in the states affected by the walkout.
As you can tell, many items including world events can affect the prices consumers pay at the jewelry store. One key indicator is when the price you pay at the gas pump goes, the price for silver jewelry is rising as well.
Jenny Meeks is the president of Morgan & Company, a gift and jewelry company specializing in personalization. Visit our online store at http://www.morgan-company.com.
By Jenny Meeks
Article Source: http://EzineArticles.com/
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