The recession has hit many people in different ways, and I’d like to give a quick example of how it’s affecting us.
With a lot of uncertainty in the world markets, investors have been looking at different ways to secure their investments and have been buying things like gold and tin.
Everyone has seen the TV ads advertising cash for your gold as the gold price keeps on rising, although less famous, the tin price has been doing the same.
This graph shows the price since 2003 – the two large spikes occur at the end of 2007 (start of global financial problems) and right now. As you can see on this graph, the current price is hitting a high for the last 7 years, but it’s also hitting an all time record.
What does this mean for us?
Tin makes up about 90-95% of pewter, so an increase in the price of tin means an increase in the price of pewter. Thankfully many pewter manufacturers stock-pile pewter so don’t always need to buy when the price is high, but a 250% increase in 2 years is hard to deal with.
Unfortunately this means we’ve had to implement a 7% price increase on some of our pewter products (roughly half of them). We hope this won’t increase over the coming months, and we hope the price of tin will return to normal fairly soon.
Image sourced from London Metal Exchange.