by Kate Keipp, JewelryTools.com

Precious metal prices this year have been a bit turbulent as they’ve gone high and low and then extra high, record high to be exact. If you compare gold prices now to a couple of years ago you’ll find that they’re still incredibly inflated. The good news? Prices are lower now than they were just a few short months ago, and have remained fairly steady for about the last month. At close of markets on Friday, December 16th, gold was at $1599.20 per troy ounce. Even silver, which skyrocketed last spring to nearly $50 per ounce, has come back down in cost and remained constant the last few months. On Friday, December 16th the cost of silver was just $29.74 per troy ounce.

Did you know there are many variables that merge together to determine the cost of precious metals? There is always supply and demand to consider, but this summer, for instance, there was the US economic recovery and the European economy that affected the value of the dollar and the euro, and therefore, metal prices. Here in the U.S. the folks on Capitol Hill disagreed on fiscal measures, we suffered from a credit rating downgrade, and the EU neared defaults by some of its members. What will 2012 bring with the upcoming U.S. presidential election and most of the world trying to emerge from suffering economies? Unfortunately, nobody knows how all of these factors will affect the cost of precious metals. The best thing to do is stock up on precious metal wire and other findings while the prices are low!

We know a lot of you like to keep on top of the latest jewelry trends. And why not? You want to ensure the pieces you make are made with metal, beads and in styles that are popular, right? If you’re one of the many who trend watch, then you probably have noticed that gold jewelry wasn’t as popular this year. The cost was a main factor. Similar to the clothing world, the jewelry world works with what it can afford. Did you notice the colossal amount of flannel at your local retailers this year? It was "in" because it’s inexpensive to make clothes from that style of fabric. Silver, Argentium, silver-filled, and even copper are hugely popular right now because most people can afford pieces made from these metals.

Another metal that’s hot right now is copper. Yes, copper. This may be surprising, but there are so many ways to work with copper that will make you fall in love. You can put liver of sulfur on your copper and give it a lovely patina finish. This is huge in the fashion world and we’ve seen a lot of it locally, too.

To make things fair for you, our prices on precious metals change frequently to keep pace with market changes, so that if the price of silver or gold plunges, you will get the best deal. That’s why the price of our gold filled, Argentium, sterling silver, or silver-filled wire is different from last week, and the week before. We have an incredible stock of gold filled and sterling silver filled wire for you to choose from. Now is the time to jump at the chance to stock up on wire. With prices this low and so far, holding steady, it’s the right time to put in that large wire order you’ve been waiting for – and remember, our Gold Club members save an additional 25%!

P.S.: We often have people ask us, “If I buy silver wire at a low price, but then the price of silver is much higher when I finish my pieces, should I use the low price of silver, or the new, higher price to base my selling price on?” And what we always say is, consider the cost of replacing the material. If you sell your silver wire bracelet for less than it will cost you to restock on silver wire – you can’t afford it! Always keep your profit and costs in mind when you set prices on your precious metal jewelry pieces.

Here are some additional resources:

http://money.cnn.com/data/commodities/
http://www.kitco.com/reports/KitcoNews20111205TW_2012outlook.html
http://www.kitco.com/charts/livesilver.html
http://www.kitco.com/charts/livegold.html
http://www.wire-sculpture.com/jewelry-making-blog/2369/current-gold-wire-prices/
http://www.nationaljeweler.com/nj/fashion/a/~27470-Record-prices-hamper-gold-demand

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Daily Wire Jewelry Making Tip
November 27, 2009

Question:

If taking an order for a custom piece, when finished, it isn’t what the client wanted, how do you charge for your labor and supplies, other than saying upfront it isn’t refundable.  I try to guarantee client satisfaction and this can become an issue.

Answer:

I agree that this is a difficult situation, however if you are ‘up-front’ and firm about your ‘custom order’ policies, your client should appreciate your honesty. One sure way to state your custom order policy is to either print it on the reverse of a few business cards that you hold back just for this type of order, or on a separate card with your contact info that you can give to a client. My personal policy is to take full payment, which guarantees my customer that I will pay for any necessary shipping and insurance, and that I cannot refund their money if they don’t like what they have agreed to, until I actually sell the piece they had me create just for them.

The best way I can respond to your question is based upon my experience. This is how I personally take a custom order (which is also what I teach my personal students). Use a triplicate order pad. Have the customer fill in their personal info, including shipping/mailing address, phone numbers and if available their email. I then write out exactly what the customer would like (based on our conversation) including what metal(s), their stone or mine, their preferred style (if possible, the name of a piece I may already have that they like, which I also take a picture of with my cell phone in case it sells) what embellishments they prefer if any, and a quick sketch. I then go over their order in detail again, jot the approximate delivery date on the form, and when they are satisfied I have them sign the order slip. I add my contact info to the bottom and give them the top/original order slip as well as my card. When their order is finished, I include the second slip with their order when I either deliver it by hand or ship it to them. (If shipping the item, I also call or email this customer to let them know their order is on the way, with the tracking numbers.)

And before you ask, yes I have had a customer who was not happy with her order and I did send her a refund check when I sold the item about seven months later, along with a thank-you for her interest in my work. She has since become a regularly returning client.

Answer contributed by Dale “Cougar” Armstrong

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