Throughout the past 12 months, sourcing jewellery has become increasingly more difficult for retailers. With raw silver price increases affecting both wholesale and production supplies, retailers are looking to navigate through this period of difficulty.
Recent market reports note that silver prices surged over 150% during 2025, dramatically increasing the cost of the raw material used in jewellery making. For businesses, margins have become tighter, and sourcing decisions have become more intentional.
Many active jewellery retailers are seen sourcing their collections through wholesale channels, while more established brands are taking strategic advantage of using production services for cost control. By understanding how these two sourcing methods work, retailers can prevent risk and costly decisions.
What Does Sourcing Wholesale Mean?
In buying products through wholesale channels, this means that the retailer is purchasing stock that’s already been produced, and is being stored ready for purchase. The price of these items will reflect the raw cost of silver during the production of the products, and not at the time of purchase. During periods of price volatility, this method can provide short-term stability.
As you are already aware of the increased silver price, the design structure of jewellery has become an important factor. The cost of silver is of course related to the weight being purchased. Pieces with less silver will inevitably be cheaper. At the time when this article was written, silver is being traded at £1.80-£2.80 per gram – meaning every gram of silver in in the weight saved with reduce material costs by this value.
Cable chain necklaces, minimalist solitaire stud earrings, stacking rings and pave huggies are great examples of items that have been specifically designed to use a lesser silver, but still appeal to a larger customer base.
A typical cubic-zirconia stud earrings weighs approximately 2g of silver, however a sleek staking ring generally weighs about 2.5g. These small weight differences greatly impact the final cost price.
Sale patterns in a retailer’s existing inventory can provide useful demand signals. Categories labelled as ‘Best Sellers’ or ‘Newly Restocked’ will usually indicate popular and fast moving designs. Demand of course varies between markets, but these categories can give retailers a helpful reference point when sourcing popular styles.
Additionally, by opting for clearance stock, retailers are also able to make great gains in testing new designs without the risk of production costs.
When Sourcing Wholesale Inventory Doesn’t Work
Sourcing from factory direct wholesales is always a reliable option, especially for businesses in the early stages of building their jewellery collections. This method allows for quick restocking, minimal order quantities, and a plethora of design options. These are all signals that point to low risk.
Once a jewellery brand takes shape, and begins to grow – production orders often become the sourcing method of choice.
Manufacturers will generally require several design factors to be formalized prior to production. The designs will need to be CAD rendered and intricately sketched, and the target audience will need to be refined and determined – since this can affect metal weight, finishing quality, and stone choices.
As well as the above, a clear RRP is vital. By knowing how much a retailer plans to market the item, and realistically how much it can make, you’re able to determine reasonable margins based on the production costs.
Often brands will approach manufacturers with a small and select range of items, as opposed to a single design. This takes the leg work out of repeating conversations and calculations, and allows the retailer to launch the items as a single collection.
What to Look for in a Jewellery Manufacturer
When selecting a jewellery manufacturing partner, it’s important to note their communication style around materials, pricing and timelines. This will build trust and likely indicate you’re working with a reputable supplier. This will also vitally inform you of any unexpected market shifts in material costs & time delays.
Knowing that a supplier has in-house manufacturing capabilities is also a strong indicator of their reliability. This will allow a retailer to have closer control to the production process. When starting out with production sourcing, the ability to manufacturer in small quantities/designs too is a helpful capability, since this avoids committing to large volumes.
In many Thai production facilities, minimum order quantities for small collections can start around 30–50 pieces per style, compared with roughly 100 pieces or more at larger factories. Production lead times commonly range between 30 and 65 business days depending on the design and finishing requirements.
Where a Factory-Direct Supplier Fits
The is a category of suppliers that bridge the gap between wholesale and manufacturing. These are factory-direct suppliers. This structure allows for brands to test designs using existing stock before committing to a larger (and per piece – cheaper) production order of the same style.
UK supplier, Silver JD, follows this model. This company operates as a factory-direct supplier of sterling silver jewellery, while jointly running in-house manufacturing production in Thailand. Wholesale orders are available for immediate sourcing, and are dispatched out of the UK within approximately 48 hours. If designs are selling well, this organisation can also manufacturer the designs to order, reducing the per-piece cost for the retailer.
As raw material costs continue to fluctuate, ensuring that your sourcing strategy is informed will be key to the sustainability and growth of a retailer’s jewellery business.