hi all,
The price rises seen on QVC are actually very reasonable - indeed, as an importer of Suarti jewellery I can tell you that they nowhere near reflect the actual rises in cost seen in the last year or so and I suspect, given the current economic climate, that QVC and/or Suarti have actually absorbed some of the rises, i.e. cut their profit margin, in order to hold prices down.
As to why the prices have risen there are two factors. First, you have to remember that silver, itself, and Indonesian jewellery is traded in US dollars.
- The price of silver. The cost of silver rocketed to nearly $20 US per ounce in 2007 and although it fell back to about $10 towards the end of the 2008 it is now rising again (currently $13-14). Also, in Indonesia the price is set by the government (not the open market) and they hold it artificially high. However, the silversmiths tend to buy well in advance so changes in price tend to lag behind the market, hence the rise of 18 months ago has only really started effecting prices in the last few months.
- The weakness of the pound. The value of the pound has dropped by approximately 30% against the dollar in the last year. So, for example, an item wholesaling at $10 cost £5 a year ago but now costs £7.20!
For a true idea of just how good the QVC prices are I suggest you check out the retail prices on Suarti's own site at
www.suarti.com or Balinesia's sites,
www.balinesia.net or,
www.balinesianewyork.com or even our site at
www.2bjewelled.com(Prices are pretty much the same on all though some of ours may be lower because we still have stock from before the recent price increases.)
