So you might have noticed silver jewelry costs more these days. Like, a lot more. And if you caught my post last summer about silver hitting $39 an ounce, well... buckle up... We're at $95 now.
I figured it was worth talking about what's actually happening in the silver market right now and a little perspective :) While I'm not entirely sure how this will shape the future of my business - I do know that I am working on lost wax casting currently (and designing a wholesale collection!) where I am looking to lean into more fine jewelry, faceted gemstones and...14k GOLD! (Which is $4,747 an ounce right now....yikes!)
The Silver Situation
Everyone needs silver right now. And I mean everyone. Solar panels are eating up over 25% of the world's annual silver supply and with the push toward renewable energy that number looks like its only going up. Electric vehicles need it. Your phone needs it. AI data centers need it.
Meanwhile, the world is using about 160-200 million ounces more silver each year than is actually being mined from the earth. That's been happening for five years straight. When demand keeps outpacing supply like that, prices climb. Add in investors piling into precious metals when the economy feels shaky, and we end up where we are today.
Let's Talk About That Price Gap
You might notice that silver jewelry costs more per ounce than the spot price you see in the news. Here's why that is.
That $95 number you see? It's the spot price for raw, bulk silver traded between institutions in huge quantities. That's not what I'm buying when I make your jewelry.
I'm buying fabricated materials (wire, sheet, chain) that suppliers have already processed. That comes with fabrication fees, usually 15-25% over spot price. So before I've even touched a torch or designed anything, the material cost is higher than what you see reported.
Then comes my part: designing, shaping, soldering, finishing, marketing, shipping...etc. Labor and skill get factored in here, also. You're not buying metal by the ounce, you're buying something created with my hands that tugged at your heart when you saw it. (and YES, you deserve it!)
A little reflection to 2017 when I started smithing...
When I started, silver was around $17 an ounce. Watching it hit $95 feels surreal. That's a 459% jump.
But here's what I keep coming back to... if you own silver jewelry already, those pieces have genuinely appreciated in value. And moving forward, when you invest in silver pieces, you're buying something that holds real value, not just because its beautiful but because the material itself is valuable and increasingly essential.
We can't control what happens with global silver markets. But we can choose to invest in jewelry pieces made by our favorite artists - knowing you're supporting a real human and that is worth more than ever before.
xo,
Courtney Rae
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