Silver prices have gone up mainly because more people want silver than there is available. It’s no longer used just for jewellery — it’s a key material in solar panels, electric vehicles, computer chips, and modern electronics, all of which are growing fast. Mining silver takes time, and new supply can’t ramp up quickly, so demand is outpacing production. On top of that, when the world feels uncertain due to wars, economic slowdowns, or debt worries, people often turn to precious metals like silver as a safer place to put their money, which pushes prices higher.
Another reason prices are climbing is financial investing. Large investors are buying silver through funds that physically store the metal, which means less silver is available on the open market. When supply is tied up in vaults and exchange inventories are low, prices rise. At the same time, things like a weaker U.S. dollar, expectations of lower interest rates, and fears about inflation make silver more attractive as a way to protect money’s value — adding even more pressure for prices to keep going up.
What this means for handmade jewellery?
Material Costs for Jewelry Makers Go Up
When silver spot prices rise sharply, the raw material cost for your pieces goes up too — whether you’re using sterling grain, sheet, wire, or casting grain. Jewellers don’t usually buy metal at old prices indefinitely: suppliers tend to base casting grain & wholesale metal costs on recent spot price averages, so costs rise with the market.
Result:
- Your cost per ounce of silver increases — which directly raises the cost of production.
- Profit margins shrink if you don’t raise prices.
- Many makers raise retail prices of silver jewelry accordingly.
Retail Prices Likely Rise (Consumers Pay More)
Because silver is now more expensive, most brands and artisans will either:
- Increase retail prices, or
- Reduce the amount of silver in designs to keep prices accessible.
That means:
- Simple earrings that once sold for, say, C$50–90 may edge upward.
- Larger, heavier pieces (e.g., chunky bracelets, large pendants) become proportionally more expensive.
In Canada, this is amplified because the silver price saw record levels in Canadian dollars as well as USD.