{"id":340,"date":"2026-10-15T00:24:29","date_gmt":"2026-10-14T16:24:29","guid":{"rendered":"https:\/\/amarajeweiry.com\/silver-price-lock-500-piece-order\/"},"modified":"2026-10-18T17:42:54","modified_gmt":"2026-10-18T09:42:54","slug":"%d8%aa%d8%ab%d8%a8%d9%8a%d8%aa-%d8%b3%d8%b9%d8%b1-%d8%a7%d9%84%d9%81%d8%b6%d8%a9-%d8%b7%d9%84%d8%a8-500-%d9%82%d8%b7%d8%b9%d8%a9","status":"publish","type":"post","link":"https:\/\/amarajeweiry.com\/ar\/silver-price-lock-500-piece-order\/","title":{"rendered":"\u062a\u062b\u0628\u064a\u062a \u0633\u0639\u0631 \u0627\u0644\u0641\u0636\u0629 \u0641\u064a \u0637\u0644\u0628 \u0645\u0648\u0627\u0633\u0627\u0646\u064a\u062a \u0645\u0646 500 \u0642\u0637\u0639\u0629: \u0642\u0627\u0626\u0645\u0629 \u0641\u062d\u0635 \u0623\u0648\u0627\u0645\u0631 \u0627\u0644\u0634\u0631\u0627\u0621 \u0648\u0631\u0627\u0621 \u0639\u0631\u0636 \u0633\u0639\u0631 \u062b\u0627\u0628\u062a"},"content":{"rendered":"

Short answer:<\/strong> You lock the silver price on a 500-piece moissanite order with clauses written into the purchase order, not with a futures position. Five items do the work: the billable gram weight per SKU, the wastage percentage and the basis it is charged on, a silver adjustment line with both a deadband and a cap, the exact published benchmark the adjustment references, and the calendar date on which your deposit converts a quotation into a contract. Then add a delay boundary that names who carries the metal risk if production runs past the promised window. Written that way, 500 pieces is a fixed-cost purchase. Left unwritten, it is an open position in a market you cannot watch all night.<\/p>\n

Why is a 500-piece order a PO problem rather than a hedging problem?<\/h2>\n

Because the exposure is small and the instrument is expensive to operate. Futures and perpetual swaps are traded instruments: they carry margin, roll dates, and a close-out decision somebody has to make at the worst possible hour. A 500-piece moissanite run is one purchase order with a start date and an end date.<\/p>\n

The real risk to your margin is narrower. A factory quotes on Monday; CAD and a sample absorb the next stretch; the deposit goes out later; first-order production takes the rest. On our published OEM timeline \u2014 quote back within 12 hours, CAD in 48 hours, samples in 7\u201310 days, mass production in 15\u201325 days \u2014 an un-fixed quote can sit open for roughly a month before metal is bought, long enough for silver to move twice. The fix is a better purchase order, not a derivatives strategy.<\/p>\n

How does the silver price actually enter a 925 quotation?<\/h2>\n

A silver pass-through line has four parts, and almost every later argument about “silver went up” traces back to one of them being left vague:<\/p>\n

    \n
  1. Reference price<\/strong> \u2014 the published benchmark the quotation is pegged to, not a screenshot of somebody’s trading screen.<\/li>\n
  2. Purity factor<\/strong> \u2014 the 0.925 silver content factor, so you pay for metal that is actually in the alloy. We publish third-party assay evidence for our own sterling: 976.8\u2030 measured by an independent lab against the 925\u2030 sterling standard (report No.24201801196-1), plus assay documentation read against GB 28480-2012 in our certifications and test reports<\/a>.<\/li>\n
  3. Billable gram weight<\/strong> \u2014 the grams the factory is allowed to invoice, defined as net metal weight rather than finished weight.<\/li>\n
  4. Wastage<\/strong> \u2014 the casting, filing and polishing loss charged on top of those grams.<\/li>\n<\/ol>\n

    The arithmetic reads: reference price \u00d7 0.925 \u00d7 billable grams \u00d7 (1 + wastage). Multiplied across 500 pieces, small ambiguities get loud: if a 0.2 g per piece difference goes undefined, the two sides are disputing 100 g of silver on that line alone.<\/p>\n

    \"Front<\/p>\n

    Clause 1: Which gram weight are you paying for?<\/h2>\n

    Settle net versus gross before you settle price. Net metal weight excludes the stones, the plating and any findings you buy separately; gross weight includes everything on the scale. Across 500 pieces that gap is real money, and it is where a “locked” quote drifts.<\/p>\n

    Two sentences make the number enforceable. First, the quotation lists a target gram weight per SKU, derived from the approved sample. Second, treat the published \u00b13% weight tolerance as what it is \u2014 a quality-control tolerance, not a price lever \u2014 and decide whether over-weight pieces are invoiced at the quoted weight or re-priced, and how an order average inside tolerance but individual pieces outside it is handled. Both answers belong in writing before the deposit moves.<\/p>\n

    Clause 2: Wastage \u2014 one number, one basis<\/h2>\n

    Wastage is where the metal line quietly grows. Pin down three things. Is the percentage fixed at quotation, or does it float with the market? It must be fixed: a wastage figure that re-opens after sampling is the same as having no metal clause at all. Is it charged on billable grams or on finished weight? On billable grams, for consistency with the formula above. And is it charged once on the order, or per SKU, per casting run, or again on defective units?<\/p>\n

    A single fixed wastage percentage on a defined weight base turns the metal line into something you can forecast. Two percentages with no named base is not a price, it is a negotiation waiting to happen.<\/p>\n

    Clause 3: Give the adjustment line a deadband and a cap<\/h2>\n

    There are two honest ways to draft this. Option A is a pure firm quote: the price holds for the whole order and no market move reopens it. Option B is a formula, and a formula needs both a lower and an upper limit or it is not a lock \u2014 it is a one-way option written by the buyer. In practice a band looks like this:<\/p>\n

    “The metal price in this quotation is based on a reference price of USD [____] per troy ounce. No adjustment applies while the benchmark price on the lock date is within [____]% of that reference. Outside that band, the metal line is adjusted on billable grams \u00d7 0.925 \u00d7 the difference, symmetrically in both directions, and the total adjustment is capped at [____]% of the order value.”<\/p>\n

    The symmetry matters as much as the cap: if silver falls outside the band, the same sentence should reduce your invoice. The cap is what lets you publish a landed cost to your own customers instead of explaining later why it moved.<\/p>\n

    Clause 4: Name the benchmark, and know when it prints<\/h2>\n

    Name the benchmark in the PO, and its print time. The LBMA Silver Price<\/a> is set once a day in an auction independently operated and administered by ICE Benchmark Administration Limited, commencing at 12:00 noon London time. Sterling and euro versions are indicative settlement figures only, and the benchmark is not published on weekends or on UK bank holidays.<\/p>\n

    Three consequences follow. Specify the benchmark day precisely \u2014 for example, the first LBMA Silver Price published after your deposit clears. Specify currency (USD) and the rounding convention. And accept the rhythm: a headline about silver spiking overnight cannot retroactively move a contract pegged to the noon print, which removes a whole category of dispute. One note from LBMA’s page: a licence from ICE Benchmark Administration is required to obtain, use or redistribute benchmark data. Reference the benchmark inside your agreement; do not republish it.<\/p>\n

    Clause 5: The deposit date is the lock date<\/h2>\n

    Our published payment terms are 30% deposit to start production, 70% balance before shipment by T\/T \u2014 our FAQ page<\/a> repeats them. That structure helps you: the deposit is when a supplier commits to buying metal, so the lock should attach to it and nothing earlier. Draft it as a dated sentence:<\/p>\n

    “The metal price in this quotation is fixed for orders whose 30% deposit is received in the supplier’s account on or before [____]. If the deposit is received after that date, the supplier may re-issue the metal line only, at the LBMA Silver Price published on the date of receipt. All non-metal lines remain unchanged.”<\/p>\n

    Then get confirmation in writing: a countersigned proforma invoice, or a short email repeating the reference price, billable grams, wastage basis, band and lock date. A signed proforma without a validity date is the quietest way a price lock disappears.<\/p>\n

    Clause 6: Where does the delay boundary sit?<\/h2>\n

    Metal risk and time risk have to be split, or the lock only works until the first slip. If production overruns the quoted 15\u201325 day first-order window and metal was never bought, who carries the increase? Two mirrored sentences settle it:<\/p>\n