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Old Yesterday, 11:55 PM   #1
Saransh
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Precious Gems business Startup

Hey guys shooting my shot everywhere and why not start with my favourite forum.
I am not such an avid poster but I think some might know me. I just turned 30 and I am a nice restaurant owner. But a few days back a friend of mine came up with an idea to just raw dog into the gem business (don't judge us we are motivated to do anything )
The thing is where I live there's a market for super personal service. what I want to do is get my clients rough facet stones let them chose guide them which cuts they should get within their requests. and then let them cut buy a professional I know in Thailand or Germany (prices wil vary I know).

The thing is I me and my friend we are really quick witted learners we go extremely into details but sometimes do tire out because of mental lazyness when something goes a bit to slow.
We got some connections in India Thailand and trying to get into Vietnam also ( focusing on diamonds and the big three gems might, add tourmaline too).
But we are still looking to expand our network even more. I know I should not just blatantly aks for advice to people who have put maybe years and years of practice into this exciting business. But here I am still taking my chances.
Could someone guide me on this on what the best way is to takle this idea and get any kind of result

ps: my dream watch is an a lange minute repeater but with what I am now I don't think ill be able to reach it so that's also one of my motivators ! ( as childish as it seems)
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Old Today, 02:03 AM   #2
330ci
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Quote:
Originally Posted by Saransh View Post
Hey guys shooting my shot everywhere and why not start with my favourite forum.
I am not such an avid poster but I think some might know me. I just turned 30 and I am a nice restaurant owner. But a few days back a friend of mine came up with an idea to just raw dog into the gem business (don't judge us we are motivated to do anything )
The thing is where I live there's a market for super personal service. what I want to do is get my clients rough facet stones let them chose guide them which cuts they should get within their requests. and then let them cut buy a professional I know in Thailand or Germany (prices wil vary I know).

The thing is I me and my friend we are really quick witted learners we go extremely into details but sometimes do tire out because of mental lazyness when something goes a bit to slow.
We got some connections in India Thailand and trying to get into Vietnam also ( focusing on diamonds and the big three gems might, add tourmaline too).
But we are still looking to expand our network even more. I know I should not just blatantly aks for advice to people who have put maybe years and years of practice into this exciting business. But here I am still taking my chances.
Could someone guide me on this on what the best way is to takle this idea and get any kind of result

ps: my dream watch is an a lange minute repeater but with what I am now I don't think ill be able to reach it so that's also one of my motivators ! ( as childish as it seems)

If you can't afford an A lange Minute Repeator you will be eaten alive in the gem sector.

Coming from a culinary background, jumping into a new market with one of the most insane business plans I've ever seen. You'll be lucky to make any sales.

Unless you've been in the business of selling stones, have certification from GIA, or an equally reputable geological institution, you're literally selling snake oil. Accredidation is very important in thenindustry. Nobody can guarantee what lies beneath an uncut gem, or if it will even survive cutting. the reason there are professional stone cutters is because they can choose the best cut for the stone, not the customer, and if purchasing rough cut stones, getting them cut and polished is the name of your game. you're going to have to be extremely competitive on price and I genuinely don't see you being able to compete with Blue Nile or other wholesale dealers in the marketplace. The cutter to consumer market is an old trend.

Its not like there's a shortage of established buyers, and being new to the game I'm sure you'll quickly find out how many real "friends" you have in the business.

Your best bet would be utilizing connections in questionable areas and becoming a wholesaler of stones yourself. the highest margins you would likely see would be dealing in Semi Precious gems and stones over investing large sums of money into rare stones that could bankrupt you in a trip from the sounds of it. Plenty of lesser stones are increasing in popularity, specimen collecting is a huge hobby and seems to be growing. But you're really aiming for a niche business that most people seek out generational jewelers for their largest purchases from.

If I were you, I'd start small, or I'd start buying and selling estate jewelry from local gold buyers to dip my toe in the game without getting burned too badly. I managed a pawn shop for years and before I went out on my own as a dealer of second hand luxury goods, I learned the the local players, saw what they paid, I took alot of losses/broke even. But at the end of the day, my experience through trial and error gave me a true feel for the market and how quickly it was to move stones at a certain price point. Personally I think focusing on the wholesale game is the best place to start. I had to beat out the other local competitors at first which made it so I wasn't making that much. But eventually I ended up with all the business I felt was worth my time.

Truthfully though, unless you plan on working with GIA to get your stones certified post cutting, can prove they come from a ethical source, and really plan on putting your entire existence into this venture. I think there's better options out there. I personally love the industry. But it is cutthroat and even more so in the retail capacity. Unless you've spent your life around them, I really couldn't imagine jumping into the market. I wish you the best in your business planning. But I would urge extreme caution in this venture
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Old Today, 02:17 AM   #3
Saransh
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Quote:
Originally Posted by 330ci View Post
If you can't afford an A lange Minute Repeator you will be eaten alive in the gem sector.

Coming from a culinary background, jumping into a new market with one of the most insane business plans I've ever seen. You'll be lucky to make any sales.

Unless you've been in the business of selling stones, have certification from GIA, or an equally reputable geological institution, you're literally selling snake oil. Accredidation is very important in thenindustry. Nobody can guarantee what lies beneath an uncut gem, or if it will even survive cutting. the reason there are professional stone cutters is because they can choose the best cut for the stone, not the customer, and if purchasing rough cut stones, getting them cut and polished is the name of your game. you're going to have to be extremely competitive on price and I genuinely don't see you being able to compete with Blue Nile or other wholesale dealers in the marketplace. The cutter to consumer market is an old trend.

Its not like there's a shortage of established buyers, and being new to the game I'm sure you'll quickly find out how many real "friends" you have in the business.

Your best bet would be utilizing connections in questionable areas and becoming a wholesaler of stones yourself. the highest margins you would likely see would be dealing in Semi Precious gems and stones over investing large sums of money into rare stones that could bankrupt you in a trip from the sounds of it. Plenty of lesser stones are increasing in popularity, specimen collecting is a huge hobby and seems to be growing. But you're really aiming for a niche business that most people seek out generational jewelers for their largest purchases from.

If I were you, I'd start small, or I'd start buying and selling estate jewelry from local gold buyers to dip my toe in the game without getting burned too badly. I managed a pawn shop for years and before I went out on my own as a dealer of second hand luxury goods, I learned the the local players, saw what they paid, I took alot of losses/broke even. But at the end of the day, my experience through trial and error gave me a true feel for the market and how quickly it was to move stones at a certain price point. Personally I think focusing on the wholesale game is the best place to start. I had to beat out the other local competitors at first which made it so I wasn't making that much. But eventually I ended up with all the business I felt was worth my time.

Truthfully though, unless you plan on working with GIA to get your stones certified post cutting, can prove they come from a ethical source, and really plan on putting your entire existence into this venture. I think there's better options out there. I personally love the industry. But it is cutthroat and even more so in the retail capacity. Unless you've spent your life around them, I really couldn't imagine jumping into the market. I wish you the best in your business planning. But I would urge extreme caution in this venture
wow
this put a lot into perspective. Just the kind of insight I needed. I agree with all your points especially the snake oil part. if I were to sell stones id definitely get them certified. And yes the wholesale part is very interesting too that was going to be the end goal. But as you said I should focus more on that.
Also you are not the first person to tell me about semi precious stones, but. im glad you did because it validated my doubt if it even was worth it or not so I'll focus on that too. And yeah I want it to be something more of a side or medium side thing I cannot put everything in it I can maybe put 30 percent of myself in it as I do love my restaurant.
thank you for your time it means a lot. Sounds even tougher than the culinary market.
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Old Today, 02:40 AM   #4
piratfisk
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OP: 330i just gave you the best advise your business partners/parents/wealth management team never gave you. I'd heed it. Another thing that caught me out was:
Quote:
we are really quick witted learners we go extremely into details but sometimes do tire out because of mental lazyness when something goes a bit to slow.
You admit that you & your braintrust/Mensa (not an acronym, as I've learned) collective get bored when things get slow & are mentally lazy? No matter what type of business venture you try next, you'll be belly-up by morning if you maintain these two traits.
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Old Today, 04:00 AM   #5
Saransh
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Quote:
Originally Posted by piratfisk View Post
OP: 330i just gave you the best advise your business partners/parents/wealth management team never gave you. I'd heed it. Another thing that caught me out was:You admit that you & your braintrust/Mensa (not an acronym, as I've learned) collective get bored when things get slow & are mentally lazy? No matter what type of business venture you try next, you'll be belly-up by morning if you maintain these two traits.
yes very true the only thing im not lazy or bored with is my restaurant but yes this is something I need to change patience is very important im trying to get more and more patient and if compare myself to my old self 5 years back there has been a big difference. thank you for your kind words
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Old Today, 04:14 AM   #6
AzPaul
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Whoever came up with the idea of attaching the word 'Precious' to gems and stones, was a marketing genius.
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