GemeWizard
Home|About Us|Store|Color Report Newsletter|Support|News & Events|Contact|Gemstones Colors

Gemstones Colors and Prices



         


   

      Gemewizard archive daily article








  Let me explain some facts of life in the gemstone business

by Menahem Sevdermish FGA D.Litt.
June 19, 2013


When one has been in the gem trade for several decades - four in my case - one acquires a certain perspective of the way things work. One realizes that the gem world operates with rules of its own, providing a number of very particular facts of life.

As a service to our readers, I thought it would be worthwhile to impart some of the wisdom I have accumulated during my long career.

FACT 1
You can never tell, just by looking, who is a serious new customer. In other words, you will never know until the last minute of a gem show just how well you did.


We veteran gem dealers seem to think we can spot a serious new buyer in the crowd of the gem show. However, we sometimes make serious misjudgments.

We tend to relate a person's looks and behavior to particular character traits. We assign importance to their attire, the manner in which they talk about gems, the way they handle and examine them, and so on. We generally believe that this information divulges to us who may be a serious buyer and who may have the funds to back up his or her requests.

Well, not always!

Several years ago, during the Tucson Gem Show and at the height of the recession, we were in our booth on the afternoon before the close of the show, having not made many sales. A man in his 50s, plainly dressed, approached and gazed at our display for quite a while. He seemed to be very tired. We offered him a chair inside and some coke that we had. Quite honestly, he didn't seem to be a potential customer. He just sat and asked to look at more and more of our large tanzanites, without asking for their prices.

It was almost closing time, when suddenly, he pointed at me and asked, "How much for the tanzanite?"

"Which one?" I replied with a question of my own, to which he made a circle with his finger in the direction of the parcels in front of him and in our display cases.

I told him that I still didn't understand which one he was referring to and he replied in a very soft voice, "All, all of them."

I was surprised and my dear business partner, Avi Meirom, gave me the "half-smile look," which we share when somebody is wasting our time. But I decided to play along and looking at our papers, I said that their total weight was around 1,200 carats, amounting to about $376,000.

He said that he thought the price we quoted was way too high, adding that that they should be sold in the range of $330,000 to $350,000, but he'd return the following day for our answer, after which he got up and left.

We were all sure that he would never come back, but to our surprise, he did. Stopping at our booth on the way back home to the Far East, he left us a check for $345,000, turning it into quite a successful show. He remains a very loyal customer to this day.

So you see? One never knows!

FACT 2
Diamond prices are accurate in the eye of the beholder or diamonds have no value - they are just a percentage off.


Everybody in the trade is familiar with the leading diamond price list. This is said to represent certain prices of diamonds and yet, depending on your position in the trade, these prices may be as much as 50 percent off the actual price.

In fact, most diamond dealers do not talk about actual dollar prices but say, for example, "minus 28 percent", meaning that the value of the diamond is 28 percent below its the current listing. Others will argue that it is more valuable, only minus 24 percent.

Somehow, nobody seems to mention the actual price, only the percentage off the price.

Can you imagine in your mind walking into a grocery store, asking the price of a kilogram of cucumbers and being answered: "12 percent off?"

FACT 3
The first gem you meet in a parcel is either the best or the lousiest of the lot.


Please don't ask me why, and it doesn't matter what the size of the parcel is, but somehow the first gem you pick up is either the best or the lousiest of the lot. It never actually represents the average price of the parcel.

When I asked a fellow gem dealer if he agreed with this assumption he said yes and continued: "Don't you know that the first person that you meet in a new city is either the priest or the prostitute?"

It took me many years to understand what he meant, but since then I have always tried to avoid the priests and the prostitutes of the parcel and concentrate on examining the crowds.

FACT 4
Gems look worse after being purchased by you and much more attractive after you have sold them.


Usually the day after you have purchased an important gem, when you know that it is yours and you no longer are excited by the purchase, the stone tends to look slightly less attractive. It is then that the stone reveals its true self.

However, once you have sold it and it belongs to somebody else, the stone reacquires all its original charms and illusions.

FACT 5
The longer you are in the gem and diamond trade, the less you know you know.


In the early days, when I was an apprentice jeweler in London during the day and studying gemology at night, I was sure that within a few months, or at most a couple of years, I would know practically all there was to know about the gem world.

But as time progressed, and as I handled more gemstones and came to understand by field more extensively, I realized that I was just uncovering the tip of the iceberg.

Today, four decades later, while everybody else seems to think that I'm an expert in gems, I know that there is still so much more to learn about them all.
I am still as excited as I was back then, when a new stone I encounter teaches me something new, which happens quite often.


I am sure, my fellow gem dealers and enthusiasts, that you have all encountered the above facts in one form or another. There is really no way to avoid them. You see, the gem world has a life of its own!

©2007 Menahem Sevdermish, GemEwizard, Inc. All Rights Reserved. Designed by YCS - Yahalom Creative Solutions