[Jewelry making - Article 01015] - [Orchid] For serious jewelers, Tucson is a must!

[Richard W. Wise]

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    I have been attending the gem shows at Tucson for over 20 years.
    Tucson is the one show that is a "must" for jewelers. Why, the best
    prices, the best seminars ^& other educational opportunities and the
    key people in the trade all gather there once a year. 

    If you are a wholesaler the trip is critical. It is really only at
    Tucson where a wholesale jeweler has the opportunity to bridge the
    gap between the prices jewelers pay and those manufacturers need to
    pay. 

    Although there are many price levels in the gem trade and short of
    buying parcels, there is really no distinction between
    manufacturer's cost and jeweler's cost so a manufacturing jeweler
    who buys at wholesale, takes a markup then passes the item along to
    a retail jeweler who marks it up to retail, the gem will likely find
    the item too expensive and therefore difficult to sell. A
    manufacturer who buys a gem and does not mark it up might as well
    dig a big hole, throw her/himeself in and pull the dirt in over the
    top of him/herself. 

    Today the issue is even more critical. The gem market, much like the
    diamond market is beginning to colapse in on itself, the traditional
    3 tiered market (source, wholesale, retail) four tiered if you count
    rough, that has opperated for thousands of years is breaking down.
    The internet has allowed source dealers to sell to retail buyers in
    the U. S. And it is happening to a surprising extent. Savvy retail
    buyers a already purchasing gems directly from Bangkok dealers,
    bypassing the traditional wholesaler and retailer. In the diamond
    market this has meant that retail magins have shrunk to as little as
    10%. On Ebay U. S. wholesalers, who were the first to use the
    internet to bypass retail channels, are being edged out by source
    dealers from Bangkok and Sri Lanka. U. S. Ebay dealers who had a
    very Merry Christmas last year are already singing the blues. 

    The colored stone market has a few hurdles that have slowed this
    trend. The fact that fine colored stones are rare coupled with the
    lack of a universally accepted grading system with a phalanx of labs
    to provide quality certificates have made sourcing gems from
    overseas a dangerous hit or miss prospect at best. Still, some of
    the same source dealers who set up in Tucson are sellling gems
    direct to U. S. consumers over the internet. This is a market major
    crisis and it is the future and it will not go away. 

    What can independent jewelers protect themselves. Well, the tearing
    of hair and knashing of teeth are not likely to do much good.
    Likewise the finger in the dike strategy; boycotting wholesalers who
    set up websites as some have proposed, simply will not work. I have
    a few ideas but, in the words of the late great Betty Davis, "buckle
    your seat belts honey, its gonna be a bumpy ride." 

See you in Tucson,

Richard
www.rwwise.com

For Information and sample chapters from my new book: 
www.secretsofthegemtrade.com

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