Hi,
So, I saw an instagram post that made me have a mental paradigm shift, regarding silver pricing, and the current rise in silver costs…it made me think…
the person posited that the increase in silver cost, could have a positive effect on silver jewelry in the sense that it could raise the percieved value of silver and jewelry made from silver…make it seem more valuable, as opposed to an inexpensive category of jewelry…
this got me thinking that this increase in value might also allow for increasing the margins and raising the labor component in the pricing structure…an opportunity to further elevate the category…
just a thought…
just trying to make lemonade out of lemons!
maybe it is also time to learn how to work in platinum…I am afraid of platinum…the need to avoid cross-contamination with tools…different torches…etc…maybe i will research…
julie
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Greetings Julie,
I asked a similar question of a Native Smith named Art Tofoya. His reply was charge the same, make less profit. His work is classic Southwestern Native jewelry, beautiful and truly the work of a craftsman. I am not sure where the limit is so I looked into that possibility. We all have a way that we price our work. BUT… all this occurred about $40.00 an ounce ago. I will have to ask Art again.
So now I am not at all sure how to proceed. The notion of changing “the perceived value” of silver jewelry sounds spooky to me. It almost sounds as if the original author believed it never had much value in the first place and now we are trying to give it more imaginary value.
At the present time, using my pricing schedule, a bracelet, made of 10 gauge sterling, that I charged $100.00 last spring now works out to be twice that. I have wondered what Dad would think of all this. I bought a bracelet from him to use as a gift. That bracelet cost $12.00 in the summer of 1968.
My wife and I have enjoyed this work to such an extent that even at 75 I look forward to the next Art Festival and I prepay for table space for the next year. Rob and I are luckier than most in that our father left us a market niche and a customer base that looks forward to seeing us and getting the next, new design.
For the last several years, at least as back as far the COVID pandemic isolation I have messed around with flame enameling. I haven’t gotten to where I would sell the stuff but it has been fun. I will continue in that effort until I feel I have something to sell. I will continue to build bracelets, earrings, and pendants. Now they will be made with Copper, Brass, and Sterling, in combinations.
Maybe the perceived value will be seen as a new level of artist effort.
Don.
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If you keep the same profit margin, but apply it to what is now 4X the price of silver a year ago, you make more profit. There is nothing wrong with that. Just listen to our leaders in Washington. And, as long as we can convince people that they are investing in something of value, it won’t matter. I have started looking at defining what is, for me, a reasonable return on investment in a gram of silver regardless of its cost and then keeping that constant as all the other variable around it fluctuate. The pundants are saying the silver will retract at least 50% soon. Who knows what to do. For me it is stimulating creativity in using othert metals, enameling, engraving and lapidary…Rob
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Hi,
well…funds will have to rebalance out of gold and silver soon…they cannot have more than a certain % on any one position…
julie
Julie…I am not a finance person. We are actually visiting our CFP today to discuss our investments and any changes that he thinks might be needed. I will ask him what he knows about precious metals and, in particular, silver. I have always been thankfull that I don’t have to rely on selling what I make for a living…Rob
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There is nothing profound or even explanatory here. I’m just killing time before I get back to work.
The price of an ounce of silver seems to be in the $60-$70 dollar range. It moves around a lot in that area so I am not sure if I’d call it stability but it isn’t in the $100.00 range either. Forty five years ago my father had a very complicated method of pricing his bracelets and consequently each one of the same design had a different price depending on the size.
My first show was in 1994(I think) with Brother Rob. Because Dad’s system was so complicated we decided to average the prices and sold bracelets of the same design for the same price no matter the size with one exception. The very large bracelets were $5.00 more each. Remember this was many years ago. I have continued to use that basic scheme since 1994.
This passed weekend I had the best sales of any show I have done at any art show since 1994. Bracelets we sold for $30.00 in 1994 I sold for $120.00 last weekend. Sterling wire rings we sold at $3.00 in 94 are now $25.00. I should pull up the books and compare product moved against money exchanged that first show to last weekend. But I’m not gonna. Like Rob my retirement income isn’t tied to my jewelry business. I’d buy fewer tools with fewer sales perhaps.
I almost think people will pay for what they want if they can afford it. Just like they did in 1994.
Don Meixner
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