Silver Jewelry Exchange: $222/lb Credit Deal

The video discusses a Silver Jewelry Super Exchange Program aimed at helping jewelry sellers refresh their inventory and avoid losses associated with stagnant silver jewelry stock. The presenter emphasizes the importance of moving old or unsold silver jewelry rather than letting it depreciate over time.

Key Points:

• Silver prices fluctuate: The presenter notes that silver was previously down but is now up about 20%, which impacts the resale value of silver jewelry.
• Many sellers have unsold jewelry that is not moving during their busiest sales seasons. Holding on to such pieces leads to losses.
• A PDF form is available for download that helps sellers understand how much money they will save and how much they lose if jewelry does not sell within six to eight months.
• Sellers are encouraged to replace unsold or tarnished jewelry with new items that will sell.
• Jewelry labeled as sterling silver can be weighed (subtracting the weight of the box) and returned for credit.
• The program offers $222 per pound of returned sterling silver jewelry.
• Example: Returning 3 to 4 pounds of jewelry can yield $666 to $888 in credit.
• The credit is not given as cash but as store credit against the purchase of new jewelry.
• To utilize the credit, sellers must make a minimum purchase of $1,500 at regular wholesale prices.
• The program essentially allows sellers to get $500 worth of new jewelry free if they return $500 worth of old jewelry.
• This helps sellers:
  • Clean up their inventory by removing old, tarnished, or unsellable pieces.
  • Refresh their stock with new, attractive items for the upcoming sales season (2017 mentioned as example).
• The presenter advises sellers who are not comfortable with numbers to seek help from someone knowledgeable to understand the financial benefits.
• The overall message is to avoid losses by moving inventory quickly and taking advantage of the exchange program to boost sales.
• Contact information and PDF details are offered for further inquiry.

Conclusions:

• The Silver Jewelry Super Exchange Program is a strategic solution for jewelry retailers to avoid inventory stagnation and capitalize on current silver prices.
• It encourages sellers to trade in old silver pieces for credit toward new stock, helping maintain a fresh and marketable product line.
• Sellers save money, reduce the burden of unsold inventory, and prepare for successful sales seasons by participating.

Important Financial Details Table

Action Items for Sellers:

• Download and review the provided PDF form.
• Weigh sterling silver jewelry, subtracting packaging weight.
• Calculate potential credit based on weight and silver price.
• Contact the program representatives for details and assistance.
• Plan to purchase new jewelry stock worth at least $1,500 wholesale to redeem credit.
• Consider polishing or freshening up jewelry before trade-in to maximize value if possible.
• Avoid holding on to unsold jewelry for extended periods to minimize losses.

Key Terms:

• Sterling Silver Jewelry: Jewelry made of 92.5% silver, the type eligible for the exchange.
• Wholesale Price: The price at which retailers buy new jewelry from suppliers, not the retail price.
• Store Credit: Non-cash credit applied toward future purchases.

Uncertain or Not Specified:

• Exact process for submitting jewelry for exchange beyond weighing and boxing.
• Geographic limitations or eligibility criteria for participation.
• Specifics on how the value of jewelry returned is assessed if it is not purely based on weight.
• Whether the program applies to other metals or only sterling silver.