Silver has been valued as precious jewellery since 3000 BC, but over the past two years, its price has shifted dramatically. The metal has moved from averaging around $30 per ounce to well above $80 on its way from affordable luxury to high-end fashion, creating new challenges for the jewellery supply chain on the way.
For Canadian jewellery retailers, designers, and ecommerce brands, currency fluctuations, logistics expenses, import duties, and compliance requirements all contribute to the final cost an end buyer pays.
So, understanding how to source sterling silver jewellery amid current uncertainty requires a strategic plan that accounts for key factors.
Why Silver Costs Are Climbing
Many factors are behind the rising jewellery costs in 2026.
First, as you may already be aware, market volatility has significantly affected silver pricing with a sharp climb of more than 130% in 2025 alone. When raw material prices rise, every stage of production is affected.
Manufacturing costs have also increased due to inflation and the increased cost of living. The cost of producing a single unit comprises three major costs: operations & administrative expenses, skilled & unskilled labour, and raw materials. Even when designs use lighter metal weights, these production costs remain part of the overall manufacturing process.
Freight and logistics instability add another layer of complexity and pressure. Fuel surcharges, port delays, and shipping fluctuations can complicate inventory planning, so businesses that source internationally must account for these variables when planning purchasing cycles.
Lastly, Canadian import duties and taxes also influence sourcing decisions. Silver jewellery as a whole enters the country under HS code 7113.11 and typically carries an 8.5% duty, along with GST and provincial/territorial taxes applied to the landed value.
Together, these elements mean that sourcing decisions directly influence profitability.
Why Wholesale Sourcing Matters
For many businesses, wholesale sourcing is an easy answer to some of the challenges we discussed earlier. Factory-direct wholesalers reduce multiple layers of markups.
For example, purchasing a sterling silver ring directly from a distributor might cost a lot more than purchasing the same ring directly from a manufacturer. Removing intermediary margins can create meaningful savings, especially when building a full product collection.
Wholesale sourcing also allows businesses to explore lower minimum order quantities (MOQs). This flexibility makes it easier to test new designs before committing to large production runs.
Planning Purchases Strategically
Reviewing previous sales data can help identify development opportunities based on designs that consistently perform well, allowing businesses to prioritise inventory with proven demand.
But if the business is new to the market or has limited data, wholesalers can be very resourceful, especially if they are manufacturers themselves. With insights from their research and design team, along with stock order sales, their catalogue is curated to reduce the risk of dead inventory. The easiest way to identify what is performing well in the market is to check the best-sellers section or a frequently restocked section for a rough idea.
You can use insights from factory direct wholesalers, such as their best-selling or frequently restocked items, to identify what is performing well for other businesses.
SKU diversification is another useful strategy. Balancing lightweight silver pieces with slightly heavier statement items spreads exposure across different price points. This helps businesses adapt more easily if metal prices continue to rise.
Seasonal designs focused on Christmas, Spring, Halloween, and, not to be forgotten, Valentine’s Day are a consistent trend that comes around every year, with pieces such as CZ solitaire studs, infinity bracelets, charmed huggies, and simple pendant necklaces that can be worn beyond their original seasonal window.
Evaluating Suppliers for Long-Term Growth
When selecting a production partner, reliability and scalability are just as important as choosing the right products.
Reliable suppliers that can handle both small wholesale orders and larger production runs reduce friction when scaling a business.
Quality control processes also become more important as material costs rise and margins tighten.
Ethical and Sustainable Manufacturing
Many businesses now prefer suppliers that comply with recognised international audit standards such as the Responsible Jewellery Council (RJC), Sedex, or amfori certifications.
Research conducted by a Thai wholesaler & manufacturer, “925silverjewelry.com (Phoenix Manufacturing Co., Ltd.)” has shown that a growing number of consumers are willing to pay more for products that demonstrate credible sustainability commitments.
Navigating an Unpredictable Market
Even with unpredictable silver prices, demand for sterling silver jewellery remains strong.
For jewellery businesses, success often comes from smart sourcing decisions, diversified product planning, and a strong pricing strategy.
For retailers and brands, thoughtful sourcing, diversified product planning, and reliable manufacturing partnerships remain key tools for navigating an evolving market.
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