Sourcing Guide: Long-term Necklace Trends For Businesses During Rising Metal Prices
Precious metals always have fluctuating prices, and as a jewelry business, your focus is on being up to date with changes. Raising prices can appear from negative real yields, money supply expansions, currency pressures, and so on. That’s why you need to be prepared and not treat metals like a volatile commodity. It can sometimes lead to under-investing.
Industry experts believe that gold and silver prices are set to keep going up in value for the next three years. If you’re thinking about investing, focusing on these materials for the long haul could be a smart move. This way, you can still make a profit without stressing too much about trends.
The risk of trend-dependent necklace buying
If you buy necklaces and rely solely on trends, there are certain issues like:
- You expose yourself to higher costs if you buy solely for short-lived trends.
- Novelty items have a very short sales window
- If you focus on seasonality, you will be forced to sell those items at a discounted price.
In order to solve this, you will need to prioritize products that can be sold over multiple seasons. That means not relying on novelty. Instead, focus on stuff that will continue to sell in a few years.
Long term necklace trends that justify metal investment
When you acquire necklaces, it’s very important to think of the long-term benefits and downsides of your purchase. Thankfully, here are certain necklace categories that will do very well. These include:
Minimalist chains with zodiac signs or initials
The appeal here is that people equate these necklaces with emotion and that conveys a great personal value. You have that, without having to use a lot of material, and it helps more than expected.
Moissanite or CZ solitaire pendants
What makes these great is the fact that you have a sharp visual appeal without the expensive price tag that comes with diamonds. They work beautifully with either a casual or a formal outfit.
Enamel pendants
Such pendants are great for kids or people with low budgets. In this case, the focus is less on the metal value. Instead, it’s all about the durability and color, but also the design. That’s why this category is more suitable for children.
Layering and long chains
These necklaces tend to sell a lot, but you do want to have lighter chains if you want to layer them. Silver is the go-to metal for these chains because the monetary value is excellent, especially when you compare it with other metals on the market.
Styling shifts that are extending the necklace lifespan
A very interesting shift happening these days is the fact that jewelry is worn every day, and not just for a special occasion. People will adapt gold and silver necklaces to everyday wear and even work wear. Plus, customers are equating the value of a jewelry item based on how much they wear it.
Does this matter when material costs are high? Yes, because if you wear the same jewelry piece on a daily basis or every week, it holds more value for you when compared to something you wear 2 times a year.
That’s the reason why you want items that hold their value in the long run. It’s a very good idea to buy from websites like 925silverjewelry.com because you have access to great finishes, excellent silver quality, durability, but also products you can wear for a very long time.
What businesses should not focus on right now?
- Ideally, you want to avoid items that use a lot of metal and which have very elaborate design
- Short-term, very popular designs that will fade out of style very fast
- The same thing is valid for any pieces that rely on trend validation for sales
Key facts and insights
If you want to source necklaces, then it always starts with finding reputable manufacturers. At the same time, you want to be up to date with the precious metal market. Here are some insights to consider.
- At this time, gold is at the top when it comes to precious metals, however silver is right behind it and sometimes outperforming it sales-wise.
- Banks and analysts are already prepared to deal with very high gold prices, but the real-world prices are getting past assumptions.
- Due to the money supply growth post-Covid, the purchasing power is reduced, which means assets, services and goods now have a higher price.
- Real interest rates are negative in many cases, which means long-term bonds and cash bonds are penalized. That encourages people to invest in products made out of precious metals to maintain stability.
- Large players in the finance world and banks are focused on acquiring more and more gold, so we can expect higher prices. Even if some people see the spike in metal prices as a temporary thing, you have to treat it as a long-term situation.
Business and sourcing implications
How does this affect your business? If you make mistakes when sourcing a product, those can get expensive very fast. That’s why it’s crucial to find a manufacturing partner that:
- Is seasoned in a specific niche and a proven track record to deliver consistent results.
- Teams that can provide the finishes, weight, and specifications you need, at the lowest market prices.
- Operational reliability is crucial, as it instills trust and leads to a long-term partnership.
It’s imperative to use companies like 925silverjewelry.com, which are focused on repeatability and consistency. A stable supply chain can maintain predictable quality, a very good output, without worrying of the product quality.
How does this connect to the necklace investments?
You want consistency when it comes to creating and selling necklaces, especially in the long run. If you have a manufacturing team that does a very good job and which can maintain professional results, that’s very helpful.
Conclusion
Clearly, when you’re sourcing necklaces for your jewelry business, you want to focus on consistency and quality. Working with a reputable manufacturer is going to help you avoid costly mistakes. It also ensures that your business can provide its clients with outstanding, consistent results, and the outcome will be excellent in the end.