Mitigating metal costs

Some might correctly argue they can save money by doing their own casting, but there are several points to consider when factoring all the costs associated with casting beyond installation and training. One that can be easily overlooked is the cost of holding inventory. To clarify, I’m referring to keeping a reserve on hand of each metal one is prepared to cast. Holding inventory of gold, silver, or platinum alloys is costly when you consider that money could be working for you in other ways. Sometimes called ‘opportunity cost,’ this factor can be difficult to calculate precisely; however, if a hypothetical $10,000 one holds in casting alloys for the occasional casting job could be alternatively placed in inventory with very rapid turnover, it may make sense to closely evaluate how well your money is working for you.

That said, one way to mitigate the cost of holding precious metal inventory for casting is to make your own gold alloys. Many refineries provide ‘master alloys,’ which contain all the components of a given jewellery alloy, minus the gold. These are fairly inexpensive by the ounce, so casting any colour or karat of gold may only require holding an ounce or two of pure gold at a time. The process is simple enough such that if you are already casting—or going to cast—you will be able to blend your own gold alloys. This tactic may only really make sense for gold alloys, though. Silver is relatively inexpensive, so holding a few ounces for eventual casting would represent about $50 in capital. And it probably makes sense to purchase platinum pre-alloyed, as the metals often used as an alloy component, other than cobalt, are fairly expensive, too.

We’ve seen how location in relation to proximity to casting services may play into your decision to cast in your shop. Location in terms of shop space itself may also be a factor. If you have a rather small space, or rental cost-per-square foot is high, the dedication of space to the process may make it impractical to cast in-house. For example, costs per square metre can normally be measured in the high hundreds of dollars in a large city, whereas space in a small community may be only in the tens of dollars per square metre, greatly influencing one’s options.