Silver as well as gold, platinum, and other precious metals have been a store of wealth for thousands of years! At the time of writing this (Dec 2019) silver spot price is $0.57/g or $17.29/oz. 925 silver is 92.5% pure silver and 7.5%. In this article we will tell you the secret how much jewelers pay for their silver jewelry!
So how is the price of your iced out Miami Cuban chain or hip hop pendant calculated? Let’s take for example a chain or pendant that’s a 100 grams for simplicity. At today’s market the silver needed to make this chain would be 92.5% of $57 or $52.7. Most dealers that supply factories with raw silver take about 5% so we are now at $55. Now a simple chain can take anywhere from 2-5 hours to make while a pendant with many stones takes about 6-8 hours to handset. Labor especially when factories treat their employees fairly can range from as low as $2-3/hr in Thailand to as much as $30-40/hr in Italy. We will take an average of 4 hours at $25hr. Our piece now costs around $155 out the factory door. We now have to add shipping as well as 10-25% US customs duties for importing silver chains from Italy (or whatever country) so let’s say now the jewelry is $175. Once received in USA if chain needs to be gold plated that will raise the costs even more to $200 or so
So a 100 gram chain hypothetically costs a jeweler making the item themselves at their own factory $200. Many jewelers don’t make the items themselves and instead buy from wholesalers locates in USA sometimes changing hands 2-3 times before they get the items which drives up the price even more as much as 2x in some cases. The last step is that any business needs to run (pay rent, employees, electricity etc) and needs to turn a profit.
We at italianosilver925.com make the items ourselves so that 100 gram chain actually costs us $200 and not $400. We in turn would sell such a chain for around $225 (or if a pendant or fancy chain that’s more labor intensive for more). By sourcing the items direct we can afford to keep the prices low while still employing only the most expert jewelers.
You can be asking why would David Yurman or Tiffany sell this 100 gram chain for $5000? The answer is advertising and brand name. Both chains are 100 grams and contain $55 of precious metal. The labor cost is almost same and if varies it’s not more than 5-10%. Ask yourself do you want to pay $225 or $5000? If you ever took either chain and melted it down you would get the same amount of money back.
In summary whenever buying silver jewelry (or gold) check the spot price of metal and calculate the cost of the precious metal. As a general rule jewelers pay about 3-5x the cost of silver metal for the pieces with the lower range being for plain items and higher range for iced out pieces. Add labor and manufacturing costs and try to get as close to cost as possible! That way you are holding not only a fine jewelry item but also an investment that can go up in price and pay for itself in a few years!