Benetone CEO believes prices could rise further as metal use soars.
Increased use of silver in the computer market could be adversely affecting the jewellery trade, according to Sutham Narula, president of silver jewellery manufacturer Benetone.
Narula said that as restrictions on the use of lead have tightened, computing manufacturers have turned to silver as an alternative material for components. Therefore, the increased use of the metal is pushing up prices, according to the silver boss.
“Silver is being used in computers as lead has been banned so the price could go up to US$50, that’s my prediction,” he said. “It was already being used in the dental industry but now it is getting more use.”
Narula said that he expects the price of gold to remain steady and so Benetone is now attempting to add more value to silver by introducing semi-precious and precious stones such as rubies, sapphires and diamonds to its silver jewellery collections. Narula said that this is something the company tried 10 years ago but at the time the concept flopped because gold was more competitively priced.
The jewellery boss said that despite inflated prices demand for silver jewellery is still strong, in part thanks to similarly rising gold prices. He said: “We thought that silver would drop in 2000, but it’s not so. Gold prices are going up and gold is not on trend.”