Metal Management Matters

Six ways to gain control over your precious metals

Sponsored by Rio Grande

With gold prices at record highs and the threat of new tariffs looming, managing precious metal inventory has never felt more urgent. But according to industry consultant Andrea Hill, jewelers and manufacturers shouldn’t be scrambling—they should already have systems in place.

“There’s nothing different you should be doing now,” she says. “You always have to manage your precious metal inventory with a tremendous degree of accuracy.”

If you’ve previously taken a more laissez faire approach to managing your metal inventory, here are six practices that will help you gain control, no matter what the market throws your way.

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Use an ERP System, Not a Spreadsheet

Tracking metal inventory by spreadsheet is still common, but Hill warns that it’s risky. “A spreadsheet will never give you the degree of accuracy that a system designed to track inventory will unless you’re spending all your time managing your spreadsheets. In which case, you’re not making or selling jewelry.”

Instead, she recommends implementing an enterprise resource planning (ERP) system that integrates inventory with sales and production.

For smaller companies, Hill often recommends Odoo, an open-source ERP. It can be implemented for as a little as $20,000, far less than the six-figure price tags of larger ERP systems.

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Track Every Gram from Purchase to Reclaim

“You need to understand how much metal you bought, at what price, which products it went into, and what fell out during the production process,” says Hill. While smaller shops may refine their scrap and sweeps only once or twice a year, the key is to track it all. “You need to know your costs at all times,” says Hill.

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Cycle Count Regularly

Many jewelers rely on a single year-end inventory count, but Hill says that’s not enough. “Every company should be doing cycle counting,” she says. “Count two to five items per week. You’ll catch inventory drift early.”

The result? Fewer year-end surprises and less risk of stockouts. “You’re not going to run out of something you thought you had,” she says.

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Don’t Try to Play the Market

Some jewelers try to time their metal purchases based on price swings, but Hill discourages that approach. “We’re not day traders; we’re inventory managers,” she says. “Buy what you need, when you need it, on time to meet your commitments.”

Trying to time the market leads to distraction. “You’re supposed to be getting rich off your business, not off metal speculation.”

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Be Strategic about Sourcing

When tariffs increase the cost of imported materials, companies need to evaluate their supply chains. “Look for domestic suppliers first,” says Hill. “If that’s not possible, find suppliers in countries with less tariff impact.”

She stresses the importance of collaboration. “Tariffs disrupt the entire supply chain. Working together…is far more productive than pushing the burden from one side to the other.”

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Focus on What You Can Control

“You cannot control the cost of metal,” Hill says. “So, stop throwing a bunch of anxiety at it.” Instead, focus on what you can control: pricing, messaging, communication, and product strategy.

“If your bottleneck is material cost, then ask yourself: What else can I do?” she says. “Maybe you offer different price points. Maybe you expand into silver. Find a new way forward.”