When you are looking to buy authentic sterling silver jewelry, you should be careful about the price you are paying. You must develop some basic ideas about this pricing is calculated or derived at. You may either end up paying something too high or may be too low. If the price you pay is too low, the material may not be real at all. You may find that the prices that are charged by retailers may be different for silver jewelry. The following seven points will help you learn the components of costing of silver jewelry.
Price of silver by unit weight: The price per gram is the fundamental component of silver jewelry price. It is not a cheap metal and this is why this component is quite high. The prices also fluctuate according to the wholesale market rate. It may differ from one day to another as per the wholesale prices.
Cost of Labor: If you are thinking of buying mens sterling silver jewelry, labor charges also form a major chunk of it. The melting of the metal, followed by molding, casting, polishing and assembly work is a specialist craftsman's job and you have to pay for it. If some stones have to be set on the ornament, the pricing goes up even further.
Addition of other materials: If other materials are to be added to the jewelry, the pricing is increased further. If a silver earring pair has milky white original pearls attached to it, the cost of the pearl along with its finishing charges are added to the price of the silver portions.
Shipping charges: Sometimes silver and other jewelry materials have to be brought from other countries. The shipping charges are quite high when these materials have to be imported from the foreign nations. The charges of shipping can add up to around 10% of the making charges of the jewelry. This charge also gets included in the final mens sterling silver jewelry that you may buy.
Custom Duties: When silver metal or the jewelry itself is imported, custom duties need to be paid. These are also responsible for the enhancement of the price of the silver jewelry. It increases the prices by 5-10% of the prices.
Overhead Costs: When you are buying the silver jewelry products from the retailers, they also recover their overhead costs from the materials they sell. These include the salary of the employees, rent of business space and additional utilities.
Profit margin: Any business targets to create profit through the business transactions. This portion just cannot be missed out. It is also included in the final price of the jewelry that you need to pay for purchasing.
When you are aware of the above-mentioned components, it becomes easier to buy silver jewelry at wholesale prices. You cannot be taken for a ride easily. If you find some retailer selling silver jewelry at an unusually low price, it is fake for sure. Once you know the method of pricing you cannot be cheated easily.