Help for an experienced GG…

[SolitaireManagementInternational]

First I would like to say “Hello” to everyone in the forum and “Thank you” for clicking on my topic.

I am an experienced Graduate Gemologist and have been interacting in the diamond community for about 5 years now. Working on both the wholesale purchasing side and the selling side in a retail and wholesale environment has allowed me to gain a clear understanding on the pricing concepts of jewelry and diamonds. But I have yet to figure out how all the documentation works and was hoping for some help in that area here!

I am looking to start up a business as a traveling buyer. Going to different dealers and pawn shops and purchasing different items of jewelry for resale at the wholesale level. I am not looking to start up a retail outlet even though I know that is where all the profit margin may be. From what I understand I will need to start a LLC and have a re-sale certificate and a federal tax id number. Now to the questions:

If I am traveling do I need a second hand dealer’s license?
Can I board a plane with a parcel in my carry-on?

The main problem I have run into pursuing making this a formidable business is that most people preferred to be paid in cash for jewelry. I know anything over 10,000 has to be accompanied by an 8300 tax form.

Can I make them an invoice without a receipt?
What if they refuse to provide a receipt?
If I were to get pulled over would the cops think it was suspicious to travel with jewelry and no receipts?

Please help me! And thank you again!

 

[Rockdiamond]

Hi,
First off- welcome!

I take my hat off to you for initiative.
There's never a time when a business opportunity that is worthwhile will be easy- or even look that way once you start to examine logistics.

I'll give you an analogy- that's incredibly pertinent to the subject at hand.
I used to be a traveling diamond salesman.
Some of the best cash customers were higher end pawn shops.
Everyone in town also knew this, so that's where the best pieces usually got pawned.
I am also a guitar player.
People also pawn guitars.
Sometimes old ones.

A 1969 Stratocaster, in 1990 in Greenville South Carolina ( for example) would be worth about...$1500.
In New York City in 1990, that same guitar would go for $4,000

Today, it's $20k on eBay. No matter where the pawn shop is. Find me a pawn shop that does not know about eBay.
The point is, today you'll need some sort of extraordinary strategy to buy valuable stuff below market.
You've already identified many potential danger and considerations about traveling around with cash or jewels......

Maybe there's some other way.....

No matter what- best of luck!!

 

[SolitaireManagementInternational]

Thank you.

This business is in the start up phase and has been going to great but I would like to pursure it in a more professional aspect.

It's true with access to the internet most items can be valued within a resonable range. But diamonds and jewelry is very subjective, it is about having the outlet for the merchandise, most pawnshops are happy to turn over inventory in the showcase.

Please continue to responses.