pugdog
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Nov 21, 2005, 12:03 PM
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Beading Issues -- literally. Eco and human
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Over the past year, we have had a lot of upheavals in the world. Starting with the Tsunami, and breezing through the worst hurricane season on record.
We've had earth quakes, water, wind and fire strike out at us.
And, as we are reading, there are always people trying to make a buck.
We support our Bali & Indonesian workers by not using "imitation" or "bali-like" products. Our beads are true Bali. The silver is from Indonesia, the glues and tools are made there, the smelting and working is done there, and the bead crafting and assembly is done there.
Our carvings and wood items are also renewable resources of that region, and are imported directly or through recognized representatives.
With everyone looking to save money, some silver prices are seeming very attractive. You are seeing sliver prices as low as $0.34 again, for "bali" beads. Be careful. Much of that is *NOT* bali, and your purchases do not go to help that area rebuild. In order to get prices that low, many corners are cut in the health and safety of the workers.
Silver is hovering under $8 an ounce. There are about 31 grams in a Troy ounce. (This is not equivalent to an English ounce).
That means the base costs for a gram of silver on the market is about $0.27. For silver to be sold at $0.34, means there is only 7 cents in there for profit, transportation, costs, and such. The numbers DO NOT ADD UP!!!
Most Bali silver seems to be priced at manufacturer's wholesale at about $0.45/gram +/- (usually +).
Add to that the costs of bringing it to the US, the costs of counting, and costs of money/credit, and then distributor profits, and then reseller profits, seeing a $0.65 price on silver by the gram is pretty amazing!
Margins would be so slim, though, quantity would be important, and that means any change in silver pricing would be immediately passed on, or the company could go out of business, cutting your supply.
Costs in the US are pretty high. We pay a lot for space, overhead, electric and taxes, etc. Bringing the silver in, at $0.45 + shipping means that even at "Keystone" you are looking at a $0.99 DISCOUNTED price for sterling silver beads.
At full keystone, the price is more like $1.10-$1.25 depending on the costs to deliver it to the end user.
My point in all this, is that if the numbers don't add up, SOMETHING is funny.
If silver is costing $0.27 per gram to purchase by the MANUFACTURERS on the precious metal markets, then even figuring in discounts, agreements, and all sorts of other stuff, $0.35/gram silver here in the US is somewhat unbelievable.
Many of you will also write checks and give donations to the needy. What most people need is a job, a skill, a business. Give a man a fish, he eats today. Teach him to fish, and he eats every day.
For regions like Indonesia, your dollars, your support of their economy by buying their beads, their art, their products -- is more important than money to a charity. YES, in times of crisis both are needed, but for REBUILDING and giving these people something they can live on, and count on, your PURCHASES of _REAL_BALI_ items is important.
Much of the "bali" being advertised at discount prices on-line is INDIAN silver, and while the region is poor, the industry is often owned by overseas companies, and most of the money usually goes into other pockets
I don't want to condemn any market across the board, because there are good manufacturers and suppliers -- but their prices WILL BE HIGHER.
This holiday season, shop not only with your calculator, but with your heart, mind, and conscience. If a deal looks too good to be true -- it probably is.
When you buy Bali, your money has ended up in Bali, and your purchase has gone to help the region to rebuild.
There are many websites highlighting the supply and economic chains of the region, and your purchase of Bali silver, and/or beads, goes to help people from the miners in the remote communities to the factories and exporters, and helps keep roads and supply lines open for everyone.
I'm considering opening up http://ecodigs.com for some insights on this whole process. Ecologic and human-friendly industries.
PUGDOG's Rock & Bead Shop
Pittsburgh, PA 15217
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