2008 starting a diamond business - Diamond Registry
Sourcing the Planet, Delivering the World...
中文 / English   

2008 starting a diamond business

Advice for a Young Diamond Broker

July 2008

There is an old joke on 47th Street about a begger on Fifth Avenue, who says, "Mister. Give me fifty cents for a cup of coffee."

Someone passed him by, saying, "You can't get a cup of coffee for 50 cents today." And he responded, "Who pays retail?"

In other words, there is no more retail anymore.

Which puts us in mind of another story — this time a true one — about a young broker came over to us and asked our advice. "Should I continue to be a diamond broker?" he asked. "The margins are so small. There is no real future in it. Perhaps I should open a store and sell diamonds." We told him we are not sure that is such a good idea. "Everyone is selling retail these days. The retail end is not something great. All the miners are selling retail: De Beers, Leviev."

In other words, there are problems at both wholesale and retail.

So he responded, "But what can I do? Diamonds are the only thing I know about."

We said the only people who will likely stay in the business for the long term are those who specialize — whether it's people who sell only pink diamonds, or sell only marquises.

He said, "By specializing, should I become a brand name?" We told him that to establish a brand you need millions of dollars, which he did not have.

But we said the only brand you can establish is your own name — meaning your integrity, your knowledge, the ability to service your customers. When people are willing to give you millions of dollars on diamonds on a handshake, then you have a trustworthy "brand." And, even in these tough times, that will carry you very far.


For over twenty years we produced
The Diamond Registry Bulletin.
In this section you will find very useful articles and tools on how to purchase a diamond.

2011 2010 2009
2008 2007 2006
2005 2004 2003
2002 2001 2000
GIA Jewelers Board JBT Website