Is it possible to judge whether or not the price of silver commodities will affect the consumer’s ability to purchase silver jewelry? The answer is a resounding yes! The reason that the price of silver will affect the consumer’s ability to purchase silver jewelry is that the jewelry manufacturer’s will have to pay more for the silver and they will pass that expense on to the wholesaler who will pass it on to the retailer who will finally pass it on to the consumer.
To think that the price of silver has nothing to do with the price of silver jewelry at Cartier or Tiffany would be like saying that the price of gas at the pump is not affected by price of crude oil. The simple premise is that everyone will pass the buck when it comes to higher prices. If the price of the raw material (i.e. gold, silver, aluminum) goes up, that price hike will be passed on. However, if the price of the raw material goes down, the manufacturer, wholesaler, and retailer have a choice to make. Do they keep the price the same and keep more profit or do they drop the price and try to get more costumers by volume. The answer is neither one. In fact, the market will determine the price that can be offered to the end consumer because there are so many players in the market.
For example, if Lee’s silver jewelry gets his silver for $10 per lot and decides to offer the silver to his customer for $15 per piece, he stands to make a 50% profit (all else being equal). However, if Tom’s silver jewelry decides to sell his silver for $12 per piece then Lee is going to be sitting on his silver jewelry while Tom gets all the volume. And if Tom gets all the volume then Lee will be out of business.
If you have been to a jewelry store lately or you have been shopping online, you can relate to the fact that some people mistake white gold jewelry for platinum. I am not saying that most people make this mistake, but some do and it can be very costly. But what if you are in a jewelry store in the mall and the salesperson mistakenly (I say mistakenly because I would never want to accuse someone of unethical behavior) switches a platinum jewelry piece for a white gold jewelry piece. Regardless of whether or not the salesperson is being ethical or ignorant, how can you tell the difference so you don’t pay the platinum jewelry price for the white gold jewelry piece?
In general, platinum is a heavier metal that is more durable than white gold. It is also fabricated better than white gold. In general, it is a good idea for kid’s jewelry to be made out of the most durable materials possible, so consider buying yours children’s gold earrings either in dipped platinum or high karat gold. In terms of engraving, platinum is easier than white gold. However, most jewelers can engrave white gold jewelry as well. With respect to color, white gold has more of a yellow color while platinum has more of a gray color. White gold jewelry tends to fade to yellow after a bit of wear and tear, while platinum will maintain its color longer. Moreover, platinum is better for people with sensitive skin since a lot of people have a negative reaction to the nickle in white gold jewelry. The price difference between white gold jewelry and platinum jewelry can be as much as 20% to 30% depending on the jewelry piece.
My wife and I have platinum bands because we wanted to engrave the inside of the rings and we liked the color and durability of platinum. The fact that white gold jewelry has a yellow color did not sit well with us. If we had wanted something other than platinum, we would have simply bought gold bands, especially since the price of gold was much cheaper in relation to platinum back then.
