A Jeweler's Jibberish

I shoulda seen it comin'..........

2009-02-17T00:53:00Z

As I was closing out some paperwork from last year I decided to check over my precious metal monitoring records for 2008. Some very interesting things happened in the metals market, some that should have thrown up a big red flag about future events. Here are some of the more interesting items of note.

March 4 - Platinum hits an all-time high of $2,278.00 per ounce.
March 17 - Gold reaches an all-time record high of $1,011.25 per ounce and silver reaches what will be it's highest price of the year at $20.92 per ounce, just off a record all-time high.
December 12 - After a 9 month free-fall, the price of platinum drops BELOW the price of gold when it hits $804.00 per ounce, well under the $826.50 per ounce price of gold that day. And silver? $10.07 per ounce........just less than half the price 9 months earlier.

Platinum had very few days after March 4 that it gained after hitting the all-time high of $2,278.00 per ounce. In fact, it seemed to take a long wide spiral downward for the rest of the year.   I shoulda seen it comin'.

Car manufacturers use a great deal of platinum in the making of catalytic converters. If you ain't selling any cars, you ain't needin' any catalytic converters, and the folks that make those converters ain't needin' any platinum. It's the law of supply and demand......when there is no demand, the price tanks, that simple. I shoulda seen it comin'....that when nobody is selling any cars........they're in trouble. Gold also declined, but only at a rate of about 19% on the year from it's high, while platinum fell some 65% and silver some 52%. All of these metal serve as conductors in the production of electrical parts or contacts of all kinds in and out of the auto industry. It's the use of platinum though where the auto industry really is a voracious consumer.

After every hurricane the stock of companies that produce wood products, appliances, and other building materials soars. This is the opposite.  When the price of certain precious metals begins to tank, we should be asking ourselves, "who uses a lot of platinum?". That might alert us to the people who are going to be looking to US for a bailout. It should at least tell us which stocks we should bail-out of. I shoulda seen it comin'..........but hind-site is still 20/20..........and that's why I'll have to be a jeweler for a while longer.

GOT DIAMOND? AGAIN !

2009-01-17T01:30:00Z

History was made again just before the close of 2008. The Wittlesbach Diamond, an historic 17th century cushion-shaped deep grayish blue, 35.56 carat set a new world record setting price of $24,311,190.00 on December 10, 2008 at Christie's of London.

The Wittelsbach Diamond is accompanied by a certificate from the Gemological Institute of America dated September 24th, 2008, indicating that the diamond is fancy deep grayish-blue, VS2 clarity.

This price shattered the previous record of $16.5 million for a 100 carat diamond which sold in 1995 in Geneva.

Q. So whose the new recession oblivious owner of this record setter?
A. Graff Diamonds.

The Wittlesbach Diamond isn't just any diamond. This diamond has it all: provenance, beauty, and rarity. Deep colors are rare and blues are rarer still. It's color and to some degree it's shape are both reminiscent of the world's most famous gem, The Hope Diamond.
Being a blue diamond the Wittelsbach is a rare Type IIb diamond, which constitute only 0.1 % of all naturally occurring diamonds. Blue diamonds are Type II because they are nitrogen-free or contain undetectable quantities of nitrogen. They are Type IIb, because instead of nitrogen they contain trace quantities of another impurity boron, which imparts the blue color to the diamonds. Another feature of blue diamonds is, that unlike other diamonds which are non-conductors of electricity, blue diamonds are semi-conductors. The main source of blue diamonds in India, was the famous Kollur mines near Golconda, in Andhra Pradesh, in Southern India. The main source of blue diamonds in South Africa, is the De Beers Premier mines, in Transvaal, South Africa.

"In the midst of these challenging times, we were thrilled to achieve an historic price for an historic diamond. At $24.3 million, the 35.56ct Wittelsbach blue diamond, dating to the 17th Century, has become the most expensive diamond sold at auction, topping the previous record of $16.5 million for a 100ct diamond in 1995 in Geneva. It was purchased by the leading international jeweler Laurence Graff, bidding against Aleks Paul of Essex Global Trading, a professional of Russian origin based in New York.” said François Curiel, Chairman of Christie's Europe and International Head of Jewelry.
THE WITTLESBACH DIAMOND

GOT DIAMOND ?

2008-09-25T16:58:00Z

History was made over the weekend when a monster diamond unearthed at the Letseng Mine in Africa was unveiled to the world.

The diamond weighs in at 478 carats and is expected to become the largest, most perfect round diamond in the world after cutting. "Preliminary examination of this remarkable diamond indicates it will yield a record-breaking polished stone of the very best color and clarity," said company chief executive Clifford Elphick of Gem Diamonds.

The diamond, which was discovered on September 8 in Lesotho and is as yet unnamed, has the potential to yield a 150 carat cut stone, and could sell for tens of millions of dollars, the company said.

The mine, which was owned by De Beers for many years, has already produced three of the world's biggest diamonds. These are the 603-carat Lesotho Promise, 493-carat Letseng Legacy and the 601-carat Lesotho Brown.

Experts in Antwerp, Belgium, who analyzed the 478-carat stone determined it to be of the highest color grading available for a white diamond, said a statement from Gem Diamonds Ltd., the company that found the stone.

"What makes it more remarkable is the color and quality of this stone," said diamond consultant Neil Buxton, further stating that it is a D color, which is highest possible graded color which could produce over 100 carats.

It would be bigger than the 105 carat round-cut Koh-i-Noor diamond, which is part of the British Crown Jewels.

It would still be dwarfed by the Cullinan diamond discovered in 1905, which was 3,106 carats uncut and yielded a teardrop shaped diamond of 530 carats called the Great Star of Africa.

The Letseng mine is owned by a mining company of which Gem Diamonds controls 70% and the Lesotho government controls 30%.

The 478 carat rough from the
Letseng Mine in Africa

Old Movie Westerns and Heavy Metal

2008-07-02T15:43:00Z

I have a calendar on my desk that gives different little bits of trivia information every day.

One of these nuggets was in the form of this question, "How much does the standard gold bar at Fort Knox weigh?" I'll give you the answer in just a bit.

The question conjures up all kinds of memories in my mind of the old movie westerns in which the villains hold up the stagecoach and demand the 'strong box' containing the gold. Then the shotgun rider and the stage driver pick up a box about 3 foot long by 2 foot square and toss it to the ground. Then the villains usually shoot the lock off the box and empty the gold bricks into their saddle bags, throw the saddle bags over the back of a horse, shoot the place up and ride off with the loot. All the people that handle the gold do so with very little effort, tossing it around like sacks of potatoes.

I must admit that I never gave any of this much thought until I got into the jewelry business and began to learn about gold and it's properties.

Now back to the question, "How much does the standard gold bar at Fort Knox weigh?"

The answer is 27 & 1/2 pounds.....and the bars measure ONLY 7 inches long by 3 & 5/8 inches wide by 1 & 3/4 inches thick. That is some serious density.

Although one could fit 4 or 5 bars of this size into ONE standard saddle bag and 4 or 5 into the OTHER saddle bag, I don't know very many people (if any) that could lift the bags, much less throw them over the back of a horse of normal height.

This property of density is one of the things that makes gold so valuable (i.e. expensive). Whoever came up with the idea of charging by the pound for gold was a shrewd businessman.

It just makes me laugh a good chuckle nowadays when I see a western movie and watch how they handle the "gold". I can't remember any of them having handled it in such a way that revealed the true character of gold as a HEAVY METAL. I guess it wouldn't be as dramatic if the villains loaded up a few bars of gold, shrugged their shoulders and said "I reckon we'll have to come back fer the rest".

I'll bet you're dying to know how much a 27.5 pound bar of gold is worth.

Today's gold price is $937.50 per ounce. So...... how many bars would you like to buy at $376,016.03?

Friday the 13th...and other not-so-scary things II

2008-06-13T14:35:00Z

O.k.......there's good news and bad news.

First, the bad news..........it's Friday the 13th.

Next, the good news.......it's just another day......NO ! IT"S TGIF DAY !

AND, this is the only Friday the 13th we will have experienced this entire year, how 'bout that?

Since I am engaged in a retail operation at The Karat Patch, I talk to a lot of people, some superstitious and some not. Those who are superstitious talk about staying home, not driving a car, not operating dangerous machinery....not running with scissors, things like that.

I, on the other hand, do not ascribe to that behavior.

I get up with a smile on my face.

If I find that I'm out of shaving cream (which happened this morning), it means I need to go the store and is not a sign of impending poverty. I just smile and use soap.

If I get to the store and find a black cat on the porch (we have a stray that shows up occasionally), it means the cat is trying to find a shady spot, and not a stroke of bad luck that should keep me from seeing my friends and customers today. I just shoo it away and get to what I love to do.

Since it's also Father's Day weekend, I will be wrapping gifts for folks.....I may take a jog around the showroom, scissors in hand, and declare my defiance of all 'downer' things in the universe.

TAKE THAT you urban legend !

Find a way to do something positive...for someone else today....it is Father's Day after all. Buy a lunch for someone. Donate to your favorite charity. Donate some time somewhere.

Of course, to do this you will have to leave your house, drive your car, possibly operate machinery...perhaps run with something sharp in your hand. GO AHEAD ! Strike your own blow against stupidty.*@# er, uh, superstition.

Make it a great day !!!

Gold and Oil

2008-06-11T14:03:00Z

It's been about a year now since I began to put some of my experiences and thoughts into this blog. A lot has changed in that time both in the jewelry industry and in the world in general.

I never thought that gold would make that black magic number of $1000.00 per ounce, not to mention silver breaking $20.00 per ounce. In the same way I never thought that I'd see $4.00 per gallon gasoline yet, here they both are.....evil monsters that are sucking the life, and money out of me and you. Products of all kinds that used to be easy and cheap to get are costing a fortune now.

Now that gold and oil prices are so high, it seems that the only people who can afford the gold are the people in the oil business. So that's the angle I took to try and 'ride the wave' (so-to-speak) of the boom....we are making an entire line of OIL RELATED & OILFIELD JEWELRY and it is selling very well both in our store, The Karat Patch in Big Spring Texas, and on the internet. We have a great line of oil well drill bits, derricks, and pump jacks as rings, earrings, and pendants. And we are introducing new products every month.

Should you get the chance to check out our line, please feel free to purchase mulitple items ! You might even want to take a look at our other products too.....you know, while you're at our site.

Really...buy a lot of stuff.....I need to fill up my tank.

Gems and a Long Hot Summer

2008-05-29T15:55:00Z

I haven't posted to this blog in a while and I must admit that things at The Karat Patch have been very busy. The time I spend typing some of my jeweler's jibberish has been better spent on more profitable things.

In the past months a lot of things have been changing in the jewelry industry. The 'blue topaz scare' has now blossomed into all-out 'gemstone paranioa'. Every periodical and trade publication now has an article about new fears among the colored stone dealers and distributors of the world concerning treatments, enhancements and reproductions of almost every type and specie of gem. It's becoming ESSENTIAL that every person who is paying money for gems, from the trader to the consumer, to know the person with whom they are dealing, and trust that person implicitly. Gone are the days I think when a man's word was his bond.  *very sad*

I have noticed that not much of this new fear has caught the attention of the media just yet, but it's only a matter of time until they will be putting that fear into the hearts and minds of the consuming public.   As long as there are ways to be deceived, there will be deceptive people who will try to profit. Most folks understand that by the time we find out that we have been deceived, many others have already fallen victim.  I suppose that is why so many agencies are working so hard to regulate so much.

I suppose too, that we will have the long hot summer to figure out just what we might be able to sell when the fall comes around. You'll remember from previous entries that the sale of blue topaz was completely shut down in the wake of the discovery that importors did not have the proper paperwork authorizing distribution. It makes me wonder how many gems could fall victim to that same kind of discrimination if things got to that point when our biggest selling season rolls around. It's a very scary proposition.

WHODATHUNKIT?

2008-03-18T15:12:00Z

The price of gold has now risen above $1000 per ounce. I wasn't sure that any other story could topple the 'blue topaz scare', but here we are.

We've gotten a ton of calls at The Karat Patch from folks wanting to sell their gold. The hardest part of these coversations is educating people on the content of pure gold in alloyed (14K, 18K, 10K, ect.) material, and the cost of getting the pure gold out of the alloyed material, and the insurance and shipping involved in all of that. Which is to say that by the time I tell them what their gold is worth ( less all of the other costs ) many of them decide to just keep their junk.

I called a major refiner the other day to see what was going on with the price they pay for 'scrap' gold in this kind of market. The person I spoke with said that as the MOUNTAIN of gold that they were currently sitting on gets taller, the price they pay for the gold gets smaller. I called another refiner and got (almost verbatim) the same story. Even if I sent them 999.9 fine gold coins, I might expect to get paid only 92% of that days spot gold price. There's a lesson in this: Don't wait for the price to peak before you sell out....it's better to sell out short of the peak and get the highest % paid of spot price that day. I actually sold both coin and scrap at $924.00, and was able to negotiate exact spot for the coin and 96% of spot price on the scrap, which was about 2% less than the advertised (with a disclaimer) pay-out. I can't get close to that today.

It's a bit scary to be in this uncharted water. I walk out into the showroom of The Karat Patch and wonder, "Will anyone buy this inventory at this price"? I wonder too about removing the stones and selling the gold for cash to buy fresh inventory when the price goes down. It's very difficult to make decisions about the future when the future is so uncertain.

Only time will tell what will become of all this. The housing market has tanked so, it might be time to sell all the gold out at a high price and buy real estate at a cheap price.

Stop Making Sense

2007-11-14T05:42:00Z

Well, I finally read something the other day that helped make a little sense of why everyone is up in arms about 'The Blue Topaz Scare".

In a couple of other entries I talked about the fact that dark blue topaz has been effectively "killed" in the wake of discovery that no importer of these radiation treated gems has the proper license to import them into the United States.

What I read was this: there is a great concern for the CUTTERS of these gems, specifically that they are breathing (ingesting) radiation charged paticles of dust into their nose and mouth and lungs. Now that makes a lot more sense than someone trying to convince me that just wearing a dark blue topaz might make me glow like a giant firefly.

However, this news only makes more noise in the clammer that is 'The Blue Topaz Scare'.

As I suspected, there has been a huge parade of tanzanite coming through the store via various vendors and salesmen. We're about 15 days away from December and 42 days away from Christmas and there is no end to 'The Blue Topaz Scare' in sight. That is why I say the blue topaz has been effectively "killed". Tanzanite dealers everywhere have poured themselves two fingers of scotch, kicked up their heels on a hardwood desk, lit up a huge Churchill cigar, leaned back and are waiting for the $$$$$$$$$ to come rolling in...and I believe it will. It will be very interesting to see how much more tanzanite will be sold this year over last....VERY interesting. But hey, like I've said, I don't believe Lee Harvey Oswald acted alone either.

I know...it's a crazy theory, but for everday that goes by in "The Blue Topaz Scare", it seems another piece of the puzzle falls into place. Consider too, that tanzanite is legitimately a "short supply" gemstone, mined in only one small place in the world. As the demand increases, so does the price... and the thickness of the wallets on the aforementioned tanzanite dealers. These are facts that cannot be denied. Does it seem so far-fetched?

So let's watch the games together shall we? We can compare notes in January !

When Free Means FREE

2007-11-05T02:38:00Z

The other day a person came in and reminded me once again when free means free. Every now and then someone comes in to The Karat Patch and says one thing when they actually mean something else. Whatever it is that they say, what they mean is...I want you to grant my request for FREE. Let me give you some examples.

"I need you to do me a favor" = "I want you to do this for me for FREE"
"You could just put a little dob of solder on this" = "I want you to do this for me for FREE"
"I just need you to bend this a little" = "I want you to do this for me for FREE"
"All I need is for you to ........ = "I want you to do this for me for FREE"

Of course, all of these statements could be preceeded by any version of "I need you to stop whatever you're doing now......"

I just do NOT understand this. I don't know how anyone can walk into a business and expect someone to stop whatever they are doing, to do something for them, and not expect to pay for it. I just don't get it.

As I said, a person came in and said "I need you to do me a favor" (i.e. "I want you to do this for me for FREE"), and laid out a chain with a knot in it. What this person should have said was "I want you to stop whatever you are doing right now, which somebody is paying you for, and get this knot out of this chain for me....FOR FREE". Now, I'm a nice guy and do lots of 'freebies' for people, but most of the time they don't even know it. Ya know, things like; while I have the job prepped and retipping prongs anyway, and find a couple more need to be done, I just do them, and don't charge extra. I don't like 'surprise' bills any more than anyone else does...so when I give someone a price to do a job I stick to it.

But back to the story. I went back and got the tools, came out front and started on the chain, and got the knot out in literally five seconds. Just then the phone rang. It was a long-distance phone call on a subject that would take only a minute, and I was there by myself, so I proceeded with the call. The person picked up the chain and turned around to start looking at some merchandise. She walked down the cases toward the door....and then right out the door. The person never looked back to say "thanks", or "I'll be right back" or anything...just left.

I have never been so furious, shocked and humiliated at the same time...until then.   Decent people would ask, "How much do I owe you?".

I've said many times "I'm not gonna let this happen again!" only to do the same stupid thing over and over again, which is; go back and pick up the tools to do the 'favor'.

I have tried to remember to tell people right up front, "There will be a charge for this, the minimum is $5.00", but then I get into the habit of forgetting. My returning with the tools and doing the work the person requested was my way of saying "O.K. I'll do it...for you...for free". So in this way it's my fault the person just walked out without saying anything, but a simple "thank you" was difintely in order.

Sometimes it's people who come in wanting me to use my 27 years experience (in doing jewelry work and looking at gems and metals) to give them information about a purchase made somewhere else or verify the authenticity of something...again, for FREE. I can assure you that most of the knowledge I have gained in the jewelry business did not come free. I learned it from either "The University of Hard Knocks" or from any of the many publications to which I subscribe.   So I've PAID for my knowledge. But, I'm supposed to just give it out for free.....right. That's why people get raises at their jobs; the more they know the more valuable they are. THEY GET PAID FOR WHAT THEY KNOW.

Nothing in life is FREE. Someone has paid for it in time, energy, money or all three. No one should expect anything they ask of a professional to be "FREE". Good manners and common courtesy demand that we should ask what the charges will be any time we ask a professional at work, to do something for us.  And by the way, if you are gaining any valuable information from this writing about how to act toward a professional jeweler, you should know that although you are getting the info for free, I have paid to have it placed here for you....see, I AM a nice guy after all.

More Fun at The Karat Patch

2007-09-26T11:57:00Z

Just when I thought I couldn't deal with one more distraction like the 'blue topaz scare' and radiation-filled 'killer gemstones', the price of gold climbs to $737.00 per ounce.

Now I'm trying to figure out how to stretch funds to buy fall stock, evaluate current stock for price increases, re-estimate customer orders, and keep from freaking out about what to do about internet pricing at our eBay store and our web site.

You know, running your own business ain't all it's cracked up to be sometimes. These are the kinds of times when you second guess everything. We are thinking about doing some painting, rearranging and whatnot but now that we may have to stop and re-price the whole store there may not be time to get it done.

Some are saying that the price of gold may climb to an all time high of $1000.00 per ounce. Now that would be something...a store full of gold and nobody wanting to buy until the price comes down----well, Merry Christmas.

It's those times when other non-jewelry items should sell well; jewelry boxes, watch winders, gifts or jewelry cleaning products perhaps. So, we will probably have those items well stocked.

Many people have asked me about the rising cost of gold. There are many factors that contribute to this, the value of the dollar, Wall Street, the housing market,....pick one, they all contribute in some way to the pace of the buying and selling of gold. Many people buy gold in an uncertain market climate because it is the universal hedge against all breakdowns in economy.

But, the issue, or issues at the moment are 'killer gemstones' and 'sky-high gold prices'. I was thinking that the gem crisis might be overcome this season without much guff, but add to it a sky-rocketing gold price and now you're talking about a big chunk of change coming out of the ol' pocket. People are going to be afraid to even walk in the door of a jewelry store after the media gets done.

I suppose only time will tell. The 4th quarter of the year should be very interesting indeed.

September 11, 2007

2007-09-11T13:29:00Z

Today is the sixth anniversary of the attacks of September 11, 2001.

A prayer for all those who lost their lives or their loved ones and those fighting for our country goes out to you.

I just wanted to take a moment to put into writing how much I love this country.

I know that she's flawed. I know that she's got things about her that make her unlikable to some, even me sometimes, but I do love her.

I have to think that sometimes she's not very proud of me either.

Even though I have the ability and the right, I hardly ever fly her flag on holidays when it's appropriate. I just forget.
I've been known to drop a candy wrapper to the ground.
I've not said the pledge like I really meant it, or sang her anthem as loudly as I've yelled at referees.
I've not taken the time to really smell her roses or stopped to watch the amber grain wave.
I haven't re-used and recycled like I should, I've been wasteful.

I think the highest praise I could give our great America, is to be a better American.

Let's all try harder...shall we?!

The Blue Topaz 'Scare' part 2

2007-09-10T23:29:00Z

Well, things just get worse with the case of the 'killer gemstones'.

One of my most recent publications is now quoting from a large gem trading association, that sales of blue topaz are over $1 BILLION dollars annually. Yea, billion - with a 'B'. See what I mean about my tanzanite conspiracy theory? You're thinking now aren't you.

It also states that the NRC (Nuclear Regulatory Commission) along with an industry watchdog committee and representatives from 3 un-named blue topaz vendors met in New York to measure a sampling of nine batches of irradiated blue topaz, and found none of the batches to pose a health risk (the article did not say however, if the stones were within regulatory limits).

The NRC has not asked retailers to stop selling blue topaz. However, instead of giving the all-clear, the NRC is now currently expanding regulations to include accelerator-produced radioactive material and other gemstones such as: red tourmaline, many beryls (including treated aquamarine, yellow beryl and morganite stones, but not emerald. ???**wouldn't you just love to know the details of the deals the US has with Columbia, the major source for fine emeralds**???), as well as kunzite and irradiated diamonds. Cobalt-60 (gamma-ray) irradiated gems, including various quartz colors, yellow sapphires and pearls were spared from the regulations, which will go into effect later this year. Oh brother, don't you just love seeing your tax dollars at work?

The same article stated that a major gem lab, had invested heavily in becoming licensed by both the NRC and the state of California to test and store artificially irradiated materials, but after many years of virtually NO ACTIVITY in this area, it relinquished its licenses. The lab is now considering reinstatement.

It's amazing to me, the flap over these 'killer gemstones'. They tested 'em - they passed - so let's sell 'em for Pete's sake. Remember, the NRC has not told retailers to stop selling blue topaz, even though it's their regulations that are in debate. Odd? Confusing? Are the stones on the market right now ILLEGAL? Doesn't it just figure that when a US government agency finds out something is in this country illegally, they do nothing really about it? No one is being fined, jailed, picked-up for questioning...nothing. Not one word has been uttered about what is happening with these vendors who have operated outside of NUCLEAR REGULATORY COMMISSION regulations. Does anyone see what I mean here?

Well, these licenses aren't free. And there are great costs involved in setting up equipment to prove that you are in compliance. And wouldn't you feel better if the government was spending this time and energy examining the millions of pieces of cargo that are entering the U.S. without being searched? I would.
How about a little more scrutiny on all the crap coming out of China?! We could use a lot of that.

O.k. put me in charge and here's what you get. Everyone who has imported blue topaz and any of these other stones in question must submit to a random in house sampling (for measurement of radiation levels) of their products at any random time. If your goods pass, you get your license to sell, and if they don't pass, your shut down for 1 year and you pay a penalty on every stone that you have sold since your last license renewal. If the offense in bad enough, the vendor gets to be 'treated' with the next batch of stones going through the nuclear accelerator. If he survives, he can apply for a license renewal.

Tanzanite anyone???

The Blue Topaz 'Scare'

2007-08-28T12:42:00Z

My industry is currently embroiled in a huge controversy over the 'treatment' of blue topaz.

For those not in the know, almost all blue topaz has been 'treated' to be blue. This treatment is done using particular types of radiation. Vendors and producers must obtain a license from the Nuclear Regulatory Commission (NRC) to import these radiation treated stones. The current problem is that no vendor has been found to have the proper license, and some major retailers are pulling their inventories until some sense can be made of the situation.

My opinion is that this latest 'scare' has less to do with blue topaz and more to do with tanzanite.

In late 2005, tanzanite was named as a new birthstone for the month of December (yes, just in time for December and Christmas season sales). Tanzanite is a much more expensive stone than blue topaz. Even though tanzanite has received the 'birthstone of the month' status, blue topaz still outsells it by a long shot because it's much cheaper.

Q: Want to sell more tanzanite?
A: Discover a way you can make the public afraid to buy the best thing selling against it, blue topaz.

As I said, my opinion is that the major suppliers of tanzanite have made this the issue that it has become. Convincing the public that blue topaz could make a gieger counter buzz like a bee, would sell a lot more tanzanite in December wouldn't it?

Interestingly enough, it was only 8-10 years ago that tanzanite was pulled from store showcases because it was believed (or propagandized) that it was being bought and sold by terrorists for money to fund their evil deeds. The extremely remote possiblility that could have been true is a whole other story.

Sound interesting? You bet.

Think about this. If you had a large interest in the tanzanite market, had lobbied hard to have it named as a new birthstone, and were banking on all this effort to boost the sale of tanzanite, only to have lack-lustre sales against a much cheaper stone, what might you do to improve your situation?

And how about this. When the media got hold of this story, large retailers were already pulling inventories of blue topaz from their showcases, just as 8-10 years ago when they were pulling tanzanite. Don't think for a minute these retailers aren't aware that they are being perceived as 'protecting the public' from "killer gemstones". They LOVE it and are simply capitalizing on the discovery that producers have been found out of compliance with federal regulations on the treatment of gems. It may even be a case where the "PR" department actually alerted the media to the fact that they were pulling the inventory until 'the safety of the public is assured'. Like my grandad used to say "if it looks like horsesh** and smells like horsesh**...it's horsesh**", and that is exactly what I think of this kind of exploitive activity. It's the idea that if you want people to clammer to something, anything, just tell them they CAN'T have it and they'll pummel the person in front of them to get it.

The fact is, some natural gemstones may have detectable amounts of radiation, but the NRC regulations only apply to 'treated' gems. Then there's the numbers game; perhaps the figure for acceptable above-background radiation is set so low by the NRC, even NATURAL stones would not pass. Federal limits are often set many times below what is considered by science to be safe for the public. In the Energy Policy Act of 2005, the NRC was given the authority over accelerator-produced radioactive material.  Most of that material is medical specific, with gemstones making up only a small portion of what's being done with particle accelerators. So, these gems have sort of been enveloped by rules meant for a completely different industry and application.

The NRC is currently reviewing regulations which were made in haste and were given (by Congress) only 18 months to assemble and implement. But until then, we'll get to see the "PR" machines at work, touting their respective corporations as 'saviors of the universe' for defending the public against these 'radioactive killer gemstones'.

Now don't panic, there will be PLENTY of tanzanite for sale to all of those folks who need a December birthstone in their jewelry. Just remember this, there's a THIRD gemstone for December....turquoise, which just so happens to be somewhat inexpensive and is also making a bit of a comeback too.

I wonder how long it will be before we find out there's something wrong with turquoise as well.

Additional Thoughts On 8/6/07 Entry

2007-08-23T17:10:00Z

In an earlier entry on 08/06/07, 'The Tennis Bracelet Double-Volley', I talked about an incident at The Karat Patch involving the sale of two tennis bracelets. I ordered one for customer 1 with diamonds graded SI1 and when the bracelet arrived, it had SI2 (a grade lower) diamonds in it. While pondering what to do, customer 2 walked in looking for a bracelet and bought the SI2 bracelet, solving the problem in an instant. Since there was no delivery deadline on the SI1 bracelet I simply re-ordered and the entire ordeal was done.

In the 08/06/07 entry I gave props to God for looking out for me and I believe He surely does. I never even considered that one of the options I had might be to sell it to the next person that walked through the door, but that's what happened. Thank God! (literally)

The problem of the lower grade diamonds was going to be expensive to fix...maybe very expensive.

This became one of those situations where an angel is on one shoulder and a devil on the other, both trying to tell me what to do.

I really needed the sale and I really did not need to spend any of the profit to save it, although in reality that is what I decided had to be done. And it's my belief in and trust in Jesus Christ, and my desire not to disappoint Him, that keeps me from making big mistakes, however tempting it might be.

If I had chosen to be dishonest, I could have delivered the SI2 bracelet just the way it was and truthfully, the customer would never have known the difference between the SI2 grade stones I got and the SI1 grade stones I should have gotten, and I would have pocketed a lot more money...but it wasn't what I promised.

If I had called the original customer 1 and said 'come get your bracelet', she would have been at The Karat Patch in 10 minutes to pick it up and I would not have had it to show to the second customer 2 who bought it. Instead, I maintained my integrity and made even more money with the two combined sales, and it felt kind of like a reward for being honest and deciding to pay for the miscommunication error. Not to mention that BOTH customers were THRILLED with their purchases.

I believe that character, honesty and a good reputation are their own reward, but it sure feels good when it's validated with something tangible. Some might call this 'Karma smiling on me' for doing the right thing, or maybe I just got lucky. Well, I spell karma J-E-S-U-S and I made my own luck when I put my life in His hands. I'm still not sure why 1. I don't immediately think to pray in tight situations and 2. when I pray for God's help, I'm so surprised when I get it...but I'm sure glad I do. God, who really is watching out for me all the time, sent the right customer to my store at just the right time, twice. **awesome**

I hope this expanded version of the story doesn't lead anyone to believe that when faced with any difficult situation, I struggle with what is the right thing to do. It just happened to be this instance when I truly believe I was tested, and I hope this testimony would help anyone who may read it to see that it never hurts to pray about any situation and, it always pays to be honest... and sometimes it's with money.

Jewelry 'Experts'

2007-08-17T23:51:00Z

I'm still amazed at how many 'jewelry experts' there are out in the world.

I've only been doing this work for twenty-five years and freely admit there are things that I don't know. But it makes me furious when someone who does something like unplugging toilets for a living starts telling me how to do my job as jeweler.

It makes me even more mad when someone comes in to The Karat Patch and acts like they know more than I do about my job, or knows more about what jewelry things are worth than I do.

A lady bought an expensive bracelet from me and was absolutely thrilled with the product and the price. The next day when she was at work, a co-worker was talking to her about the purchase and said "I saw one 'just like it' at  S--'s  Club for a lot less".
This is the kind of stuff that drives me crazy.
The only thing the co-worker knew about the purchase was the total diamond weight. She didn't have a clue what the clarity grade, the color grade or the quality of the cut was, or the quality of the polish and symmetry. So basically the lady didn't know sheets from shine-ola about the bracelet, excepting for the total weight.   And now she's the world's greatest 'deal-finder' and greatest 'deal-breaker' in the same package with one BIG mouth.

One of the things I like about my relationship with my clients is that they don't mind sharing these stories with me and getting the last laugh when I explain the details behind their purchase and the reason for the price which they paid. When my client was in a few days later and told me what her co-worker had said, I couldn't help myself. I immediately convened the ol' "JEWELRY KNOWLEDGE 101" class, also known as the "How to Make Your Co-worker Look Like a Dummy" class, with my client as the sole student under my tutelage. Then I sent her back to work to inform the 'know-it-all' of all the technical data that I'd just given her...to turn the tables just a bit.

Client: "So the bracelet you saw at S--m's Club 'just-like-mine' was a lot less?"

Know-It-All: "Sure was!"

Client: "So what was the color grade of the diamonds?"

K-I-A: "Oh, I don't know."

Client: "What was the clarity grade of the diamonds?"

K-I-A: "Uh, I don't know."

Client: "Was the cut of the diamonds fair, good, excellent, ideal...did they match in appearance from one end to the other?"

K-I-A: "Huh?"

Client: "How 'bout the symmetry of the diamonds?"

K-I-A: "The who-zee-whats-it-tree??"

Client: "Was the bracelet finding 14 karat gold, 10 karat gold, platinum?"

K-I-A: "What?"

Client: "And the entire weight of the bracelet, diamonds and all, in grams?"

K-I-A: "I have no idea"

Client: "Well, I suppose a bracelet like this could be bought for a lot less, but if you don't know anything about what you're buying then how do you know it's a good deal? And if you don't know the person that's selling it to you, how do you know that THEY know what they're talking about, and how much would you trust them with a purchase over $10,000.00?"

K-I-A: "Yeah, I see your point." ****but what's she's really thinking is: I wish I had a bracelet like that... I wonder if the Rolex I bought from that guy who sold it to me for $100.00 is real !

wah
       wah
              waaaaaahhh

Client gets an A+ with extra credit...and a discount on the next purchase.

The Saga of The "Lost" Family Heirloom

2007-08-15T17:12:00Z

Many years ago at The Karat Patch I did repairs for another gift/jewelry store in our town of Big Spring, Texas. The gift store owner would bring the repairs in to The Karat Patch and we would sometimes deliver the repairs back to the gift store when completed. This story is about one of those instances.

The lady that kept the books and basically ran the store for the owner, brought in to The Karat Patch some repairs for her store and a bracelet of her own that was a family heirloom. I got the repairs done in a few days and sent them back to their store. My wife delivered the repairs personally, but left them with a different employee. Over a month later I got a phone call from the owner of the bracelet to ask when it would be ready. Puzzled, I explained that all the repairs had been done and delivered over a month ago.  The bracelet owner questioned the other employee about it, who said she thought she put it in a place where the bracelet owner would find it, but didn't really remember exactly where.  The bracelet owner said she never saw her bracelet again after she left it at our store. --standoff--

Months went by and she would call to see if we had found her bracelet and we would respond that we delivered it to her store. --standoff--

Then she called and said that her 'psychic' told her that a woman (insert the exact description of my wife) was wearing the bracelet. How do you respond to something like that? --standoff--

Then she called to say that she was going ahead with a law suit. Now, this is the point I should state that most of these jewelry deliveries were done without any signing in and out of inventory, because the owner and I trusted each other.  And the deal here is that she had no proof that we ever had the bracelet, thus we didn't have proof we ever delivered it back to the store. --standoff--again

We got this law suit call on a Friday. That Sunday at Sunday School the stress of the situation caught up with my wife and she began to cry a bit. Those around noticed and we began to explain the situation. Sunday School stopped and everyone prayed for us, knowing this was a situation only God could fix, as both we and the bracelet owner denied possesion of the bracelet. At that point we handed the whole thing over to God, as it really was the only thing we could do.

The following Tuesday morning, the lady walked in the door with something in her hand. She said that as she was counting change, a quarter fell off the front of the desk and rolled under it. When she stooped to the floor to reach in under the desk, she found the quarter....and something else...the bracelet, which had apparently fallen off the back of the desk after the other employee placed it there for her to find when we delivered it.   She set the bracelet down, still in the bag we put it in when we delivered it so many months earlier. She apologized for the grief and paid us for the repairs we had done. She apologized again very sincerely, and left the store.  My wife and I knew we had just received an answer to prayer.

Some time passed and the owner of the gift/jewelry store died, and having no family, willed the store to the lady who was his bookkeeper all those many years.  Having fallen into ill health herself, she decided she would not continue the business. Instead of including the jewelry in the auction or selling it to an out-of-town buyer (from whom she had received an offer of over $25,000.00 cash), she called me and wanted to meet with me and my wife at her store. When we got there she told us that the deceased owner said he had always liked us and trusted us implicitly. With that said, she told us to take all the jewelry, put it out in our store, sell it as we could for whatever we could, and give her half the money when we sold something. She had made out an inventory list for us (totaling over $235,000.00) and asked us to check it before we sold anything. Now, she is standing there with a nasal cannula and portable oxygen tank hooked-up to her and I wondered what the disposition of the jewelry would be in the event of her death. I thought of a diplomatic way to ask just that to which she responded, "anyzing you have ven I die is yours". My wife and I looked at each other in disbelief. Then the lady said, again, in her rather thick Hungarian accent, "Vell, dat's it den".
Nothing signed, nothing on which we 'shook hands', nothing more discussed. Complete trust had been restored. We sent her a check every month for what we sold until her death just over a year later, at which point much of the jewelry was still in our possesion.

I hope I never forget the feeling I had that day as she explained the 'deal' to me and my wife. You see, we don't beat anyone over the head with our Christianity, but make no apologies for it either. Although the original store owner had an alternative lifestyle, I never treated him any differently than anyone else. Maybe that's why he liked us, and trusted us so much. And although the bookkeeper lady also owned the bookstore where all the local print pornagraphy was sold, I didn't treat her any differently either. I tried my best to witness to them with the way I live my life, both personally and professionally, and not judge them for how they lived theirs. I saw a saying once, "Live in such a way that those who know you and don't know God, will come to know God because they know you".

I think when she found the bracelet that day, the bookkeeper lady knew what she had brushed up against...honest, God-fearing folks who had someone more powerful than her 'psychic' working for them. Perhaps a bit like the scene in that old movie "The Ten Commandments" when Pharoah, upon returning home after suffering the horrific defeat and annihilation of his army when the parted Red Sea collapsed back in on them, sat in his throne and said "His God (Moses'), IS God", to which I can only say 'amen'.

I believe these things:

God loves me, all the time
God can be trusted, all the time
God is watching out for me all the time
God is watching others who might mean to harm me, and protects me, all the time
God caused that quarter to fall off that desk, guided it directly to the bracelet, so both would be found
God owns all the time, and takes care of all things in it
God makes the impossible possible
God wants to be your God

The Tennis Bracelet Double-Volley

2007-08-06T11:40:00Z

A while back I had an occasion to sell a customer a 6 carat total weight diamond tennis bracelet at
The Karat Patch.

I had to order the bracelet setting and have it sent to my diamond supplier to have the diamonds matched and set. I asked for a particular grade of diamond to be installed and then shipped to me upon completion. A few days passed and I received the bracelet and as is my habit I began to check the bracelet and the diamonds before I called the customer to say it had arrived.

As I put my loupe on the diamonds I realized I had received the wrong grade diamonds, lower quality than I promised the customer, and to say my heart sank would be an understatement. I didn't know what had happened, a miscommunication for sure, but what to do next? I was really sick...48 of the wrong grade diamonds in a bracelet setting that cost nearly $2000 dollars all by itself, and would not fare well in the extraction of the current diamonds and installation of new ones - what a pickle.  The only good thing about this situation was that I did not have a deadline for delivery on the bracelet, and at least had TIME on my side.

As I weighed all my options a lady walked in, a some-what regular customer and began to look around. She stopped at the diamond counter and asked if the tennis bracelets in the case were all I had. I said 'I have one here that I ordered for a another customer if you'd like to see it' and she said 'sure'. When I brought the bracelet out her eyes lit up like Christmas. She obviously loved it but my previous experience with her told me she wouldn't spend that kind of money with me....not that she didn't have it, she just never gave any indication that she trusted me with a purchase that large. In her defense, the bracelet she was looking at had a retail price 5 times higher than the most expensive piece in my inventory.
I explained that I had not yet called the customer for whom the bracelet was ordered, and if she liked it I could just order another one, and I priced it to her accordingly to the grade of the diamonds (a lower price than made to the original customer, of course).
She said 'SOLD'! and I almost fainted.

As she wrote out her check, I thought about a lot of things...faith, pre-judgement, trust and self-doubt among others; and I was wishing I had in-hand the really nice hard-wood leather lined box I was going to order for the bracelet. She put the bracelet on and said 'just like the shoe store, I'll wear it out'. **awesome**

You know, you just don't ever know when a customer who has spent a little with you, is going to spend a lot. And when they do, it could well be the silver lining around the dark cloud you're in. Don't ever judge what a customer can do based on what they've done (spent) before.

In less than an hour I had gone from doom to BOOM. I sold the bracelet I had in hand, and ordered the CORRECT grade for the original customer and delivered it a few days later.

Although the quality of the diamonds in the bracelet were nice diamonds by any definition, they weren't what I had promised the original customer. The original customer wanted a bit higher grade than normal to match a ring she would wear with the bracelet. EVERYONE was happy and my diamond dealer loved me...that week.

Of course, this is the point where I have to give the real props to God, who is constantly looking after me and helping me out.  This really could have been a case that would have cost a lot of money to fix, instead I made more money with the combined sale of the two bracelets. One thing I learned in this; never rule out some 'divine intervention' as a solution to any problem......

and of course, to speak very clearly when I'm on the phone ordering diamonds!

Advertising - Is That All You Think Of Me?

2007-08-03T21:32:00Z

O.k. - I'm angry, mad really.
I was browsing through one of the trade publications that I get at The Karat Patch and got all of four pages in and there it was - another 'sex sells' advertisement aimed not at my brain, but at my crotch.

Let me explain: my pet peeve has become these ads that show some scantilly clad vixen selling something that guys want....no I'm not talking about the scantilly clad vixen, I'm talking about products that these sexy sirens are holding and whatnot...everything from wrenches to fishing lures and you name it. You know, there's more to me than what's behind my fly. I'm so tired of this nonsense!

The ad I saw had a photo (half the space of the 1/2 page ad) of a womans large round breasts barely covered with black lacey lingerie, dripping with sweat, and a large white gem balanced in the cleavage with the statement 'some like it hotter' underneath. The ad was for a precious metal refiner that also was a jewelry liquidator, not a large diamond dealer or something of the like, that you would associate with a large white gem. These people are not selling a refining company or even a liquidation company, they are selling shock. This is a stupid ad anyway. I mean, if there's is one thing I've learned in 25 years in the jewelry business is that you don't use the words 'hot' and jewelry in the same ad. There's just a negative conotation there that causes people to hear 'stolen jewlery' when those two words are used closely together. I won't even go into the sexism issues that seem so obvious...what they think the entire jewelry world is run by MEN?!

Now, I'm not a prude by any means, and I couldn't say I was even very conservative. My issue is not with the photo as much as it is with the assumption or implication that my business decisions are made with what's behind my fly instead of what's under my hat. If you want to impress me then show me that your company can be trusted, not that your company can show me boobs. If I wanted to see that I'd get the Showtime channel at my office.

Any of you in the industry know how hard it is to really trust refining companies because of the complexity of the business. I recently broke a 14 year relationship with a refiner because they absolutely refused to admit that they even MIGHT have a security problem after I sent in an order and got a very small settlement, much less than half of what I expected. After 14 years of doing business with a company, you kind of know what to expect and this was WAY off the norm. When I pressed for answers I got the 'last ditch' response, "We'll send you the melted down block and you can send it somewhere else for settlement if you like." I always feel like they have a 2K gold blob laying around that they send to any jeweler who complains about a small settlement, saying that's the metal that the jeweler sent, and they keep the 12-14k blob they actually produced from the jeweler's order. That's the kind of people I expect to run the kind of ad I saw....sleezy.

I mean, for Pete's sake, has the entire advertising world gone sex crazy? What ever happened to showing consumers how good you are at what you do, and how many people TRUST you, and how well-trained you are, and how SECURE your facitlity is. Does this company really think I would consider them because they got my attention with boobs? O.k. it got my attention, but not my business. And isn't the goal to get my business?

I suppose I can forgive them for thinking I make my business decisions with what's behind my fly, if they can forgive me for thinking their company is run by a couple of boobs.....uh, you know, dummies-halfwits-whatever.

Signs, the times, and a farmer

2007-07-31T13:22:00Z

I'm sure you've seen a billboard or a marquee with some kind of catchy phrase or play on words that made you laugh or maybe even made you think.

How about the ones with some statement that is then signed 'God'.

You know, I'm insecure enough about some of the decisions I make and how they will play out without having a huge billboard reminding me of some of the obviously bad decisions I've made.

Our previous location of The Karat Patch was very close to the street traffic and we decided to add a marquee to our sign out front of the store to use as an announcement board for sales and such. This was the kind of marquee sign that you put the letters in yourself.

The first thing I found out was since we were 2 blocks from a school and teenagers were walking by everyday and could reach the letters on the sign, that the letters could be re-arranged to spell all kinds of things. And since the sign was two-sided they had lots of letters with which to arrange. And since we didn't open the store until 9:30am and the teens came by between 7/8:00am things could get ugly.

Question: Want to know what's on a teenagers mind?
Answer: Put up a marquee sign they can reach.

The second thing I learned was that in my neck of the woods the wind blows hard enough to blow the letters away. So now I'm buying more letters until I devise a way to put a wire across the middle of the letters to keep them in place. Turns out that idea kept the teens from amusing themselves quite as often. GOOD!

Now that I'm not spending as much time re-arranging letters, going to buy more letters or figuring out how to keep the letters from blowing away, I have time to think of 'cute' little snipettes to put on my new marquee sign. Since it's summer and it's 110 degrees in the shade I'm thinking of something 'cool'. And since I'm a diamond salesman and people sometimes call diamonds 'ice' I think of putting up the saying-'BEAT THE HEAT-BUY "ICE" HERE!'

I'm a genius! I put up the letters and anxiously awaited the first person to come in and say 'clever sign'. Two days passed and no one remarked about the sign at all. O.K., maybe it WAS stupid after all.

Then HE walked through he door. An old farmer type wearing overalls, rolling a very generous 'chew' of tobacco in his cheek, with just a hint of brown dribble out of one corner of his mouth, walks in, looks around and greets me with this very serious exclamation-'WHUR'S TH' ICE MASHANE ET ?'
I swallowed hard.
I knew he wasn't going to like my answer, but I opened my mouth anyway. I explained (and very quickly) that it was a play on words and that the 'ice' referred to diamonds and that since he's in a jewelry store it was absolutely appropriate. Apparently he did not agree. He looked me straight in the eye and said quite slowly and loudly, "AWWWWW HELLLLLL" and turned and walked out.

I followed him out and removed all the letters,
then put only four letters back up, S-A-L-E.