As silver prices raise, we all face the challenge of repackaging silver jewelry as an investment and luxury item. There are obvious difficulties in finding new markets but opportunities as well. Over the past few decades, the public became accustomed to sterling silver so cheap that it was sold alongside base metal as inexpensive costume jewelry. As prices began to rise, silver moved into upscale boutiques and Bridge Jewelry at department stores. Now, silver is making the leap into fine jewelry stores. It takes time for customers to adjust when relative values shift (witness the real estate market) but historically, silver was traditionally much closer in value to gold than we have been accustomed to and it looks as if we are headed back in that direction. The 600 year chart of silver values is fascinating. You could definitely make an historical argument for silver at $40-50/oz. On the bright side, when a material has high intrinsic value, people are willing to spend more on labor to embellish it. That means that quality products will thrive, while the low end dries up.
Here are a few marketing tips for the New Silver Reality:
1. Stress the investment value of silver, which most people have not internalized.
2. Market your jewelry as a collectors item.
3. Don’t be afraid to approach fine jewelry stores.
4. Vermeil style gold plated silver is booming as an alternative to solid gold, which has also experienced skyrocketing prices.
5. Invest in branding. A strong brand commands premium prices in any economy.
6. Cultivate individual collectors through Trunk Shows or Private Sales. Personal connection fosters customer loyalty.
At Nina Designs, we try to create products so gorgeous, they are irresistible. We hope our designs will help you endure these challenging times. Hang in there!
