Polymer clay is excellent for silicone molds and this (https://thebluebottletree.com/using-silicone-molds-polymer-clay/) is a great tutorial. If you're buying it from a craft store its probably just been sitting there for years. You best bet is to order online from a reputable dealer so you'll get fresh clay. I've never ordered from either one, but I've seen Shades of Clay (http://shadesofclay.com/) and Polymer Clay Canada (https://polymerclaycanada.com/) recommended by reputable sources.
Don't waste your money on Sculpey III because its very brittle and not a good choice for something like ornaments. I would recommend Premo. As long as you bake (https://thebluebottletree.com/baking-polymer-clay/) it correctly it'll be quite strong (https://thebluebottletree.com/review-of-cernit-polymer-clay/#Strong).