Silver jewelry sales surge in 2020
According to Rapaport, this was the 12th consecutive year of silver jewelry sales growth. Given the disruption of the economy during both "The Great Recession" and "Covid-19 Pandemic" that is a remarkable feat.
"Some 42% of US jewelry retailers participating in the survey reported higher sales, with the majority noting double-digit increases of between 11% and 25%, the SPS said. Based on retailers’ responses, 20- to 40-year-olds were the main purchasers of silver jewelry."
Clearly the very high gold-to-silver ratio during the last few decades has drawn more consumers towards silver jewelry as a better long term investment, or store of value. The amount of silver in the earth's crust is approximately 16-18X's the amount of gold, making a historical gold to silver ratio of 16:1 more reasonable. At today's prices the current gold to silver ratio is about 68:1 according to GoldPrice.org
Back to the silver jewelry sales data per Rapaport...
"By volume, sales of silver jewelry comprised about 34% of overall jewelry purchases in 2020, and 27% by dollar value. Meanwhile, 41% of retailers said their online sales of silver jewelry rose versus 2019, according to the SPS, which is an initiative of the Silver Institute, a trade group headquartered in Washington, DC. Nearly all respondents said they believed silver-jewelry sales would continue to rise."
The gold to silver ratio exploded past 125:1 about a year ago, presumably an all time high going back thousands of years, when the pandemic first started to set in. It's no surprise to us that silver jewelry sales are expected to continue to rise especially in relation to gold jewelry sales.