Rising Silver Prices Squeeze Jewelry Workshops and Threaten the Survival of Small Businesses

The jewelry industry—particularly silverware—is facing mounting pressure amid record-high silver prices globally and locally. This has directly impacted designers and small- and medium-sized workshops, creating unprecedented operational and financing challenges, according to industry professionals.

Zeinab Khalifa, a jewelry designer, said that silver workshops are going through a “worrying phase” that threatens the continuity of many of them. She explained that sharp jumps in raw material prices have made access to silver extremely difficult, especially for workshops that previously relied on credit facilities.

She added that raw material traders have become more cautious about supplying small quantities to workshops due to financial risks, leading to disruptions in cash flow cycles and a slowdown in production.

Khalifa noted that some workshops have been forced to switch to lower-cost materials such as copper as a temporary survival solution. She warned that the spread of this trend could saturate the market with lower-quality products and harm the industry’s reputation in the long term, without addressing the core problem of the suspension of genuine silver and gold workshops.

For her part, Dr. Hagar Nabil, a jewelry designer, said that rising silver prices have directly affected execution costs and pricing, prompting many workshops to halt or postpone pricing orders for fear of price volatility.

She added that the cost of producing certain pieces—even when using alternative plated materials—has risen significantly compared with previous years, limiting the ability to meet custom orders and exclusive designs.

In contrast, Heba Galal, a jewelry designer and business owner, described high silver prices as “a challenge rather than a crisis,” stressing that the increases are global, not local, and require serious businesses to reassess their priorities.

She explained that the main challenge lies in planning, inventory management, and pricing while maintaining quality and artistic value.

Galal added that any increase in raw material prices is naturally reflected in the final product, whether silver or gold, but this does not negate the importance of smart diversification in materials to serve different price segments without undermining the role of silver and its value as a safe haven.

She also pointed to a clear segmentation in the market between investment-oriented consumers who favor bullion and consumers interested in jewelry. She emphasized that unique handcrafted pieces are not based solely on metal weight, but on design, time, and craftsmanship, noting that the greatest pressure falls on traditional commercial pieces that depend primarily on weight.

Ahmed Al-Fahham, a jewelry designer, said that fluctuations in silver prices create confusion in manufacturing, but higher prices enhance the metal’s value over the medium term.

He added that the jewelry market may go through a brief “pause” before demand gradually returns as prices stabilize, stressing that silver remains an essential material that cannot be replaced in value-driven designs, unlike costume jewelry materials.

Dr. Mai Al-Hadi, a jewelry designer, said that rising prices have led to a decline in sales and production, as silver jewelry is considered non-essential for some consumer segments.

She added that designers have turned to creating lighter-weight designs to reduce final prices, acknowledging that this may affect quality. She also noted increased demand for silver- or gold-plated copper, supported by its competitive price and broader local and regional market, amid weak consumer awareness of silver’s investment value.

In the same context, Yousra Ramadan, a jewelry designer, said that growing demand for bullion has diverted part of the demand away from jewelry, prompting designers to reduce the number of silver designs in new collections in favor of expanding alternative materials. She added that sharp increases in the gram price compared with the early days of her career have significantly affected the ability to repurchase raw materials. She called for promoting a culture of trading silver jewelry as resalable assets, which would support demand and ease pressure on manufacturers.

Amid these challenges, industry professionals agree on the importance of supportive intervention for small businesses, including easing tax burdens and providing insurance coverage for workers. Such measures would enable workshops to operate in a more structured manner and help preserve this artisanal sector, which represents an integral part of the economy and industrial heritage.