I recently joined a number of diamond groups on Linkedin in order to do some branding for my name and company and to drum up some business. I immediately noticed many of the members were new or inexperienced in the diamond business. This gave me the idea that I could accomplish my goals and at the same time help educate those who are trying to understand how to make a living with diamonds.
To those of you who have read my past articles: Why Diamond Deals Fail, Mining Your Own Business, Shape Up Your Manifest, Fluorescence and Its Affect on Diamond Value, Zimbabwe Diamonds, To Buy or Not to Buy, you will have read some of the issues involved in diamond transactions. It is my hope that these articles have provided some clarity, no pun intended, and will enable you to close more diamond deals.
The reason for this article is that I have seen postings from buyers, sellers and from brokers who are trying very hard to close deals, and yet find themselves constantly disappointed. Dream, Desire, and Desperation is the name of this article and the state of mind of many of you. It is important to have hope and goals. However, desire is the root of all suffering and often leads to desperation. Detach yourself from desire and your mind will become clear, with a clear mind look at the offers that come to you.
As an example, there is a recent posting for an extremely large quantity of rough diamonds available in Mumbai, India. I was quite surprised to see this offer. I do not know if the young man presenting the offer has the goods or not. Perhaps he does.
Having spent many years working in India, I have concluded that the Indian people are brilliant and shrewd business people. (I am married to a brilliant, wonderful woman from Jammu, India.) This is why I find it hard to believe that such a large quantity of rough would be for sale in Mumbai, especially at ‘dead bottom’ prices.
Some of the largest diamond companies in the world are in India. There are hundreds of cutting manufacturers in Surat, India. Does it not surprise you that a seller with a large quantity of rough sitting in India would not have a hundred Indian companies banging at his door for these goods?
In order for a company to amass this quantity of diamonds, they have to have an extremely large checkbook. It is unlikely that a company with assets such as these is completing their first transaction. Undoubtedly, they are seasoned professionals with a large clientele.
Logic would dictate that they would sell the goods locally with their established customers. This begs the questions. Why are they not selling it in the local market? Why do they need outsiders to come in to purchase these goods?
In my experience, when goods are well priced, they fly out the window. One does not have far to look to find buyers. I suspect they have already contacted their buyers and did not receive the offers they had anticipated.
Of course, another possibility exists. Perhaps, some bright young person at the firm told them about the institutional buyers who are willing to pay more for the goods than the diamond people in India are. If this is the case, I doubt the prices are ‘drop dead’. In my 37 years in the diamond business, I never met an Indian diamond dealer who would refuse to pay drop-dead prices.
I use this example to illustrate my point, not to disparage anyone. You must use a critical eye when you look into a deal. When desire clouds your judgment, you have dreams of wealth that will inevitably lead you to desperation. A wise man once said that hope makes for a good breakfast, but for a poor supper.
If you do not know how to verify the buyer, seller, or broker, or if you do not know how to remove the personal and or financial risks to the buyer, seller and broker, then hire a rough diamond gemologist who does.
Louis Pearl G.G.
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