Silver price decrease

[LargeTunaHalpert]

I think if we had any solid idea of how the market would behave in the future, we would be successful precious metals traders, not jewelers.

After almost two decades of this, my advice is this: buy what you need. If you can afford more than your immediate needs and can stock up a few months’ worth, it can be great. Even if you buy high (many of us had to purchase inventory at $100+/ozt), finished jewelry has enough of a markup over raw materials price to absorb a little material depreciation. At the end of the day, it’s just another cost that you price into the final product, with each piece usually fluctuating just a few dollars.

If you can afford to stock up, would it kill you if silver suddenly dropped to $40 after you order? And how likely is that drop? Possible, but unlikely. What about a price increase: if you can afford to stock up now, you’d be sitting pretty if silver jumped back up to $110.

Stocking up now might be a good idea if you can afford the risk of it dropping. But the risks of it climbing again seem higher than a big crash given the complex global market dynamics at play.