Silver jewelry sales were up for the 12th year in a row in 2020. Do you know who is buying them? Our beloved millennials. That is according to the Silver Promotion Service or SPS.
Around 42% of U.S. jewelry retailers that took part in the survey said they saw higher sales, with the majority highlighting double-digit growth of between 11% and 25%.
The age group buying the most silver jewelry is 20-40 according to 51% of the retailers
Do note that these happened in the year when we had the pandemic with no clear vaccine in sight.
More than half of the U.S. retailers surveyed reported that holiday sales of silver jewelry were higher than a year ago.
Also, margins from silver sales were significantly higher than those from diamonds, gold, or platinum.
Silver’s 43% margins compared to 19% diamond, 17% bridal, 16% gold, and 5% platinum.
In total, silver jewelry sales equaled about 34% of the overall jewelry purchases last year.
It’s impossible to tell with the survey whether this surge is motivated by the pandemic.
Silver is much more affordable than diamond and gold.
We know that many people lost their income in 2020. So, people could be flocking on silver, the more affordable option.
But it is also a 12-year rally in sales.
This is a more telling figure.
And if you are an investor, this is important data to consider when making future investments.
Silver retailers are optimistic in 2021, according to the survey.
This means that the jewelry industry is not backing off in terms of demand.
With the impending demand for silver for renewable energy, this will be stiff competition.
That’s good for silver. And even better for investors.
It’s time you look into your portfolio and re-examine your precious metals allocation. You probably don’t have enough silver in there.
Do further research, consult your financial advisor, and call us if you have more questions about investing in silver.
We will be here to answer your questions.