Wholesale sterling jewelry often gets marked up at various price points by different retailers. With the price of silver jumping around the way gas prices do, retail prices also fluctuate. Here are some wholesale trading secrets of sterling jewelry that you should be aware of before buying in bulk.
Wholesale Sterling Jewelry Price By The Gram
The price per gram of sterling silver is the main determination of wholesale sterling jewelry. Silver is a precious metal, so this makes up the fundamental raw material cost of a piece of sterling jewelry. Let’s say, if the price for silver is US$30 per ounce, the price per gram is found by dividing the price per ounce by 31.5. This makes the price per gram 95 cents. So then, silver raw material for a 10-gram sterling silver key ring costs about $9.50. wholesale ring You may wonder why someone would pay a hundred dollars or more for a sterling key ring when the silver cost is merely $9.50.
The following are some considerations that will make it clear.
Costs That Affect Retail And Wholesale Jewelry Costs
A jewelry manufacturer turns raw material into finished pieces. This processing involves quite a bit of labor. The precious metal has is melted, molded and cast. Workers hand polish and assemble each piece. Very often silver jewelry is accented with various stone. The setting costs of the stones are also a big part of the overall cost for jewelry, especially when it comes to sterling jewelry requiring a high level of craftsmanship.
Additional material costs must be added to the jewelry as well. A pair of silver pearl dangle earrings may have two freshwater pearls with rhodium finish. To make this should cost at least double the price of the silver because of the cost of the pearl and rhodium. Rhodium can be more expensive than sterling, and it is high tarnish resistant.
Imported sterling jewelry from other countries has various prices due to the availability of raw materials, such as stones, and also the specialties in making some particular styles. But imported does not translate to best value. The shipping cost of transporting goods is also part of the cost. For imported sterling jewelry, the shipping cost can add up to 10 percent and even more of what it costs to make the jewelry itself. You may be paying more for less quality if you are buying imported goods.
For the same explanation as above, imported jewelry is subject to duty charges at customs. The average consumer is not aware of these charges, but tariffs can also jack up the price of sterling silver jewelry quite a bit.