New observations from longtime reseller, conversations welcomed...

[toymantodd]

Hello, I am a longtime reseller of toys/collectables. I have sold estate jewellery at times and always have been drawn to gemstones, without previously exploring or gaining much knowledge. A friend is into geodes and my brother and I went to a gem show with him. The wheels started spinning as I was thinking about an addition to our side business. Looked into schooling costs and started looking at the "free" information online, soaking things up. Glad to have found this forum

Had some gemstones that I had bought a few years ago at auction as well as some swap meet finds and online finds. Spent next to nothing for all of it, so I didn't expect much. Found a local jewellery store that was willing to work with me after I explaind my "American Pickers" type side hustle. Took 6 of the stones in to be looked at. Within a few minutes he gave me a "read" on all of them. A large 45 ct Peridot was said to be just a piece of glass, a Ruby was said to be a gemstone, but not a Ruby (can't remember what he stated) and so on and so forth. However one piece was stated to be either Auqumarine or Topaz and another was for sure Tanzanite. The interesting thing is that the Tanzanite was found at an auction and I paid only a few dollars. The Auqumarine/Topaz piece was bought for around $5 and he put a price/value of $30-$50.

I have since purchased some testing equipment and am planning to take some classes.
Specific question about eBay and other online sites I see with Indian dealers selling stones. Some stones sell for pennies on the dollar. I have bought several with mixed results. Some are just glass, some are stone, but not the stone advertised, yet some are the real deal and a "score" I would think by anybody's thinking. So, how is it possible for a dealer in India to auction off a stone for a few dollars and send it to the USA with free shipping? I mean, even if it is 100% fake/costume it still makes no financial sense and when it turns out to be real...I just don't get it.

Question about retail/wholesale of gemstones as compared to other businesses. I visited a retail store selling a little bit of everything from rocks to jewellery making supplies and faceted gemstones. He had a box/shelf display of Perridot. It was listed as $50 a ct. for any piece. I saw a simmilar box/display at the gem show in the room of a person claiming to be a true wholeseller. He was selling for $25 a ct. I am wondering from the expert crowd here where the best place to buy gemstones truly is? Who is the real wholeseller here in the USA?

Percentage of your business? Wondering if those of you in business do more selling of loose gemstones or set in jewellery. Also wondering how much of a market there is for collectors of loose gemstones? I myself think they are awesome and thinking about where they came from/the work involved for me to be holding it in my hand is remarkable...but I don't know how many share my thoughts/passion.

Anyway, I am rambling. I am brand new, just trying to learn and gather knowledge. Your comments/stories/insight are welcomed.

If nothing else happens, I will gain some knowledge and build a collection for my own enjoyment. If I can find an angle I might be able to gain a paying hobby as well, something that is never a bad idea.

Cheer's and thank you!

 

[pokerface]

There are many sellers on ebay that advertise lab-created stones as natural, and sell them at a very cheap price. These lab-created stones will test as the real thing, but are often only worth pennies. On PS, you will often see people say that gems should almost never be regarded as an investment, and I believe this sentiment carries over into the wholesale market as well. No one ever got rich quick turning over wholesale gems from ebay, and without substantial amounts of time and serious devotion to learning, you'd be in jeopardy of unwittingly committing fraud should you be advertising fake gems as real. There is no "best" wholeseller or "best" place to buy gems and most people on this website are looking for one-of-a-kind, quality stones, not generic stones or fake stones sold at a set amount per carat. These posts are always troubling to me because it's clear the way the info is presented that OP does not have the requisite knowledge to be dealing, and the likely outcome is loss.

 

[fredflintstone]

Hello, I am a longtime reseller of toys/collectables. I have sold estate jewellery at times and always have been drawn to gemstones, without previously exploring or gaining much knowledge. A friend is into geodes and my brother and I went to a gem show with him. The wheels started spinning as I was thinking about an addition to our side business. Looked into schooling costs and started looking at the "free" information online, soaking things up. Glad to have found this forum

Had some gemstones that I had bought a few years ago at auction as well as some swap meet finds and online finds. Spent next to nothing for all of it, so I didn't expect much. Found a local jewellery store that was willing to work with me after I explaind my "American Pickers" type side hustle. Took 6 of the stones in to be looked at. Within a few minutes he gave me a "read" on all of them. A large 45 ct Peridot was said to be just a piece of glass, a Ruby was said to be a gemstone, but not a Ruby (can't remember what he stated) and so on and so forth. However one piece was stated to be either Auqumarine or Topaz and another was for sure Tanzanite. The interesting thing is that the Tanzanite was found at an auction and I paid only a few dollars. The Auqumarine/Topaz piece was bought for around $5 and he put a price/value of $30-$50.

I have since purchased some testing equipment and am planning to take some classes.
Specific question about eBay and other online sites I see with Indian dealers selling stones. Some stones sell for pennies on the dollar. I have bought several with mixed results. Some are just glass, some are stone, but not the stone advertised, yet some are the real deal and a "score" I would think by anybody's thinking. So, how is it possible for a dealer in India to auction off a stone for a few dollars and send it to the USA with free shipping? I mean, even if it is 100% fake/costume it still makes no financial sense and when it turns out to be real...I just don't get it.

Question about retail/wholesale of gemstones as compared to other businesses. I visited a retail store selling a little bit of everything from rocks to jewellery making supplies and faceted gemstones. He had a box/shelf display of Perridot. It was listed as $50 a ct. for any piece. I saw a simmilar box/display at the gem show in the room of a person claiming to be a true wholeseller. He was selling for $25 a ct. I am wondering from the expert crowd here where the best place to buy gemstones truly is? Who is the real wholeseller here in the USA?

Percentage of your business? Wondering if those of you in business do more selling of loose gemstones or set in jewellery. Also wondering how much of a market there is for collectors of loose gemstones? I myself think they are awesome and thinking about where they came from/the work involved for me to be holding it in my hand is remarkable...but I don't know how many share my thoughts/passion.

Anyway, I am rambling. I am brand new, just trying to learn and gather knowledge. Your comments/stories/insight are welcomed.

If nothing else happens, I will gain some knowledge and build a collection for my own enjoyment. If I can find an angle I might be able to gain a paying hobby as well, something that is never a bad idea.

Cheer's and thank you!

You can only learn by experience and learning pricing is the most important thing you need to know as not to be scammed. Because to identify a stone is to buy it first and then you identify it. Knowing pricing will save you big headaches.

My best advice as a past dealer for 40 years of colored gemstones is that you need to go to as many gemstone websites, gemstone sales groups on Facebook, personal gemstone sales pages on Facebook and Instagram, watch TV shopping channels that sale colored stones and colored stone jewelry and learn pricing of various stones.

Look to source countries for source pricing and to the USA for resale. But you will not learn this overnight. It takes years of experience to learn what is too good to be true and to learn what is a real price for a real stone.

You need to find a mentor who has been in the business to teach you the ropes. You need to observe very carefully who is likely a scammer and who is legitimate in this business.

I just don’t have the time to go into all the numerous details.

My honest opinion is that if you are over 40 years old and only just began your interest in colored gemstones you are better off sticking to what you do now. This really is a business that you have to have a passion for from a very young age. It takes a long, long, time to be ready and go on the internet, gem shows, etc. and learn the ropes of pricing, buying, and selling.

 

[toymantodd]

There are many sellers on ebay that advertise lab-created stones as natural, and sell them at a very cheap price. These lab-created stones will test as the real thing, but are often only worth pennies. On PS, you will often see people say that gems should almost never be regarded as an investment, and I believe this sentiment carries over into the wholesale market as well. No one ever got rich quick turning over wholesale gems from ebay, and without substantial amounts of time and serious devotion to learning, you'd be in jeopardy of unwittingly committing fraud should you be advertising fake gems as real. There is no "best" wholeseller or "best" place to buy gems and most people on this website are looking for one-of-a-kind, quality stones, not generic stones or fake stones sold at a set amount per carat. These posts are always troubling to me because it's clear the way the info is presented that OP does not have the requisite knowledge to be dealing, and the likely outcome is loss.

Hi pokerface,

first off, I appreciate the post back. Let me go through a few of your statements with further questions/comments if I may.

"These lab-created stones will test as the real thing, but are often only worth pennies"

that's confusing to me when I look at the prices being asked for in specialty traditional retail settings and specialty online retail. Possibly the grade of stones at eBay and others is commercial as compared to jewellery grade or something? I don't know, still learning, that's why I ask. A host of jtv was online doing a test of a "ruby" her friend bought online at an auction site (probably eBay, but she didn't want to state) for only a few dollars. After testing she determined it was a lab created ruby, but not natural as had been advertised. In the end her friend sold it for around $300 even though she had been lied to about the natural part. I wasn't there, but I don't see the angle for a jtv spokeswoman (and gemologist) to spin the story this way if it wasn't truthful.

"No one ever got rich quick turning over wholesale gems from ebay, and without substantial amounts of time and serious devotion to learning, you'd be in jeopardy of unwittingly committing fraud should you be advertising fake gems as real."

Not trying to get rich, as stated my current buy/sell business is only a side husstle. I am just trying to grasp the hobby/industry to see if there is a way to make it work. Also, I do plan on further education. I wouldn't think of reselling something before having the knowledge to test it first and to know what it is.

"These posts are always troubling to me because it's clear the way the info is presented that OP does not have the requisite knowledge to be dealing, and the likely outcome is loss."

I certainly don't have the knowledge base needed, the good news is that I realize that, as already stated, and hence the post on this forum. Also, any losses would be small because the investment is small.


I am a lifeling "toy" guy. The knowledge base was not studied like this, it was always a part of me, in my dna. When I buy toys I don't have to look anything up (most of the time) as I know the market and my clients. With gemstones I doubt I will ever have that luxury as I am sure many of you do have. I am just looking at collecting for myself and possibly making a few bucks while doing so. I also love knowledge, that's why I stated that I plan to gain some and take some classes.

In the end, I can't at this point understand the whole thing, from a business standpoint anyway and that's where I have to start, how I am wired. When I buy a case with 120 matchbox cars in it, I already inherrantly know where the money is, I know if it is a good buy before I make it. With this, I just know if I like something. I have passion, I will put in the time. Maybe my questions are premature, that's just my excitement. I appreciate your feedback and hope that we can continue...

 

[toymantodd]

You can only learn by experience and learning pricing is the most important thing you need to know as not to be scammed. Because to identify a stone is to buy it first and then you identify it. Knowing pricing will save you big headaches.

My best advice as a past dealer for 40 years of colored gemstones is that you need to go to as many gemstone websites, gemstone sales groups on Facebook, personal gemstone sales pages on Facebook and Instagram, watch TV shopping channels that sale colored stones and colored stone jewelry and learn pricing of various stones.

Look to source countries for source pricing and to the USA for resale. But you will not learn this overnight. It takes years of experience to learn what is too good to be true and to learn what is a real price for a real stone.

You need to find a mentor who has been in the business to teach you the ropes. You need to observe very carefully who is likely a scammer and who is legitimate in this business.

I just don’t have the time to go into all the numerous details.

My honest opinion is that if you are over 40 years old and only just began your interest in colored gemstones you are better off sticking to what you do now. This really is a business that you have to have a passion for from a very young age. It takes a long, long, time to be ready and go on the internet, gem shows, etc. and learn the ropes of pricing, buying, and selling.

I thank you for your honest thoughts. Well, I am 57. I am a lifetime model train and toy guy. I am educated in electronics, was a professional athelete as a youngster, am an executive salesman and have ran a profitable hobby/resell business for 12 or so years. I like colored gemstones and am ready to put some time into getting basic education on them. I wrote here out of excitement finding the place and out of building curriosity as I have searched the net. My goal with colored gemstones is not one of making money per say, just gaining enough of a base to build a collection of what i like, as I learn and to hopefully be able to make it a "paying hobby" at some point. To add it to what I already do. Thank you for conversation, I hope it can continue. What I have been exposed to so far facinates me..

 

[Autumn in New England]

Welcome to the forum, @toymantodd!

With regard to your first question about international sellers, we must first distinguish between different types of dealers. You have the ones who are moving 22ct. spinels for $99. They probably paid a few bucks for them, so that's a nice profit, especially when doing volume. As you rightly assumed, these are synthetic stones, which have very little value. But the dealers who are actually selling natural, quality gems at a discount, as opposed to what you would pay in a jewelry store in the US, are able to do so for a couple of different reasons. They have little to no overhead. They source the stones directly from the mine. They have lower profit margins. They have no middlemen.

The colored gem industry isn't as organized as other trades. So when we're talking wholesale, many of the boutique retailers and cutters you see are getting their rough and cut stones from buying trips to Asia and Africa, and also gem shows, such as JCK which is coming up in Vegas. There are also wholesale websites like Stuller or Nomads, but you must have a sales tax permit to purchase serialized items.

The loose gemstone trade is booming. Shoppers are so much more informed today than they were even 10 years ago. So where it may have been intimidating for the average shopper to purchase a loose stone a few years back and then have a ring custom made (as opposed to buying a finished piece), consumers are better educated and have wider reaching access across the net. It's just so much easier today with our global community, and folks are really looking to express their individuality through jewelry nowadays, so they're doing their homework.

Anyway, this is just my take. I hope it helps answer your questions a little bit. Other members have already provided you with some great insight, and I'm sure more will be along to comment soon. Good luck!

 

[toymantodd]

Welcome to the forum, @toymantodd!

With regard to your first question about international sellers, we must first distinguish between different types of dealers. You have the ones who are moving 22ct. spinels for $99. They probably paid a few bucks for them, so that's a nice profit, especially when doing volume. As you rightly assumed, these are synthetic stones, which have very little value. But the dealers who are actually selling natural, quality gems at a discount, as opposed to what you would pay in a jewelry store in the US, are able to do so for a couple of different reasons. They have little to no overhead. They source the stones directly from the mine. They have lower profit margins. They have no middlemen.

The colored gem industry isn't as organized as other trades. So when we're talking wholesale, many of the boutique retailers and cutters you see are getting their rough and cut stones from buying trips to Asia and Africa, and also gem shows, such as JCK which is coming up in Vegas. There are also wholesale websites like Stuller or Nomads, but you must have a sales tax permit to purchase serialized items.

The loose gemstone trade is booming. Shoppers are so much more informed today than they were even 10 years ago. So where it may have been intimidating for the average shopper to purchase a loose stone a few years back and then have a ring custom made (as opposed to buying a finished piece), consumers are better educated and have wider reaching access across the net. It's just so much easier today with our global community, and folks are really looking to express their individuality through jewelry nowadays, so they're doing their homework.

Anyway, this is just my take. I hope it helps answer your questions a little bit. Other members have already provided you with some great insight, and I'm sure more will be along to comment soon. Good luck!

Thank you for your reply and your thoughts. I have a ton to learn and am really facinated with the industry. I thank you for your thoughts and overview of how you have seen it work and come together for others.

 

[toymantodd]

Thank you for your reply and your thoughts. I have a ton to learn and am really facinated with the industry. I thank you for your thoughts and overview of how you have seen it work and come together for others.

BTW, almost forgot, GREAT picture. I was a jockey when I was much younger, that looks like a nice ride!

 

[Autumn in New England]

BTW, almost forgot, GREAT picture. I was a jockey when I was much younger, that looks like a nice ride!

Really?! That's so cool!!

 

[Bron357]

Welcome.
im a long time ebay shopper but only occasionally buy loose gemstone, I prefer jewellery.
The first thing with the loose coloured gemstones on eBay is that there is lab created material, highly treated natural material and basically coloured glass or dyed lumps of ?
Most of the Indian / Asian sellers are selling lab material or highly treated natural.
With lab grown material it is identical on most tests to natural. The main difference being it’s “perfect” colour and lack of inclusions.
The two main types are synthetic corundum and synthetic spinel, both around 9 on Mohos, and both produced in a huge range of colours.
of course some eBay sellers are selling lovely natural gemstones but no one sells a natural heat only sapphire or ruby for $100 a carat or less.
Proper gemstones cost proper money. Yes, you can find better pricing than “retail” but it’s extremely difficult to buy internationally without reputable lab reports and knowing the vendor is trustworthy.
Many gems on ebay come with supposed lab reports. These are as fake as they gems they are selling.
You need knowledge and experience plus good contacts to make a success out of buying gemstones.

 

[toymantodd]

Welcome.
im a long time ebay shopper but only occasionally buy loose gemstone, I prefer jewellery.
The first thing with the loose coloured gemstones on eBay is that there is lab created material, highly treated natural material and basically coloured glass or dyed lumps of ?
Most of the Indian / Asian sellers are selling lab material or highly treated natural.
With lab grown material it is identical on most tests to natural. The main difference being it’s “perfect” colour and lack of inclusions.
The two main types are synthetic corundum and synthetic spinel, both around 9 on Mohos, and both produced in a huge range of colours.
of course some eBay sellers are selling lovely natural gemstones but no one sells a natural heat only sapphire or ruby for $100 a carat or less.
Proper gemstones cost proper money. Yes, you can find better pricing than “retail” but it’s extremely difficult to buy internationally without reputable lab reports and knowing the vendor is trustworthy.
Many gems on ebay come with supposed lab reports. These are as fake as they gems they are selling.
You need knowledge and experience plus good contacts to make a success out of buying gemstones.

First off, hank you for the conversation. I too buy much more on eBay for my own collections than I do selling, especially because of their structure that can really hurt honest smaller sellers if dealing with a scammer. I have purchased around 50 low priced stones just to test the waters and to give me material to test and learn on as I start my learning/testing, etc. So far, anything that was stated to be ruby has not past the limited tests that I am able to perform at this time. Included Emerald has turned out to be quartz with dye/ink infused under pressure. However, a few stones stated to be natural have actually been the type described, but lab created instead. Still worth a lot more than I paid as compared to buying straight up from a known reputable place. Very hit and mis so far, but that is what I expected. Yes, I have seen the lab reports that you are talking about...a joke, even at first glance.

In the toy business, once you have a resellers license and are able to buy wholesale, it comes down to knowing the market and finding the right place to buy. I have a lot of experience doing that and unless you are big/full time, you face fierce competition and low profit margins 30%-100% is usually the scope. However, when you "pick" like they do on the TV show, you can really make large percentage profits. This is the area that I have done well in, using traditional wholesale as a fill in, especially during the Holidays.

I like gemstones and am eager to lear about them, hence the classes, testing, and online research, this forum included. As those wheels start to turn, I also need to look at the overall picture to try and guage where I can fit in, to make some coin, even if it is just to build up my own collection. I have good knowledge on hot wheels and similar diecast cars as example. I have my own collection with a few rare pieces. The overall collection is valued at somewhere around $3K, nothing big compared to many collectors, but a handfull of pieces any collector would want along with childhood favorites. The whole collection was paid for several times over from my selling of other diecast cars. If I am able to do that with gemstones I would be thrilled, anything more would be a true home run.

Thank you for the honest comments

 

[PrecisionGem]

One thing to keep in mind, something is "worth" only as much as you can sell it for. Buying a gemstone is the easy part, selling it is much harder.

I have been doing this for one 20 years, and I have yet to see a deal that is too good to be true. Almost everyone in this business knows what they have and what a good price is for it. Most people in the gem business are second, third or forth or more generation people in the gem business. It runs in their blood.

I used to have a neighbor who did very similar to what you do. He specialized in Matchbox and Hot Wheels cars. I think he bought most of his cars from garage sales, where some parent would sell a whole box of cars for $1 just to get rid of them. He know the market and was able to sell cars for way more than he paid for them.

The gem business is much different. Unless you actually find the rough stone, you will be buying at about the same price you can sell for.

 

[T L]

I have been doing this for one 20 years, and I have yet to see a deal that is too good to be true.

I think you charge fair prices, and definitely much better than retail, especially since you also precision cut your gems.

While it’s hard to find a deal too good to be true, I think we want to avoid being gouged. There are some dealers that charge astronomical prices, because colored gems are very difficult to shop for. That’s what this forum is for, to help people make an educated decision and hopefully pay a fair price.

 

[Bron357]

The people who sell loose gemstones 99.9% of the time know exactly what they are selling so the chances of snagging a bargain are few and far between, which is why I do jewellery. More often the seller doesn’t know (or care sometimes) what they are selling and a good eye and taking a measured chance often pays off.
Not always though.
My “gem haul” was a complete fluke, I had no idea there were gemstones in rusty old tins!
I have since bought various pieces of gem equipment including a microscope and I have spent many enjoyable hours studying inclusions. There is a wealth of information online to help you learn more.
I started here on Pricescope delighted with my purchase of a spessartite garnet ring.... except it wasn’t! It was synthetic corundum. I didn’t even know back then that they made lab grown sapphire in vivid orange!
still love the ring though.

 

[qubitasaurus]

I think maybe test the waters by creating an Instagram account, see if you can move any of the items you currently have. Then I would go to a lot of gem shows, I think you need to see a lot of gems in person before you get a feel for it.

This forum will not cut it as an intro into gem selling and buying. Simply because to make a profit you're going to have to buy from overseas and resell locally. People on pricescop are often looking for one engagement ring or a few purchases and then done. It makes no sense for them to risk sending all the money they have for this one ring by wire transfer to nigeria in the hope the stone that is 20% cheaper listed on instagram, will be a nice one. But if you were to make money trading gems that is what I think you'd need to do -- take the risk, spread it out over many transactions, and resell for the higher price with a full returns policy locally in the US.

Otherwise the only other route is to have wholesale partners, who are happy to transact with you because you move plenty of stock and they can send you a parcel at a time. Again this forum isn't the place to find them. I would have gone to the Las Vegas show (along with someone I knew could introduce me) if I wanted to find these kinds of contacts.

Like others I perceive this as tricky, I'd at the very least have tried buying for personal enjoyment for a couple of years first. You can buy a lot of junk which is marketed as expensive gems.

 

[toymantodd]

Really?! That's so cool!!

It was a long time ago now, I miss being around the animals. Never made it big, but rode for a few years, then stopped and got into brokerage, marrige, kids, etc...
All turned out well. That picture remined me of being on one, just with more peaceful surroundings

 

[toymantodd]

One thing to keep in mind, something is "worth" only as much as you can sell it for. Buying a gemstone is the easy part, selling it is much harder.

I have been doing this for one 20 years, and I have yet to see a deal that is too good to be true. Almost everyone in this business knows what they have and what a good price is for it. Most people in the gem business are second, third or forth or more generation people in the gem business. It runs in their blood.

I used to have a neighbor who did very similar to what you do. He specialized in Matchbox and Hot Wheels cars. I think he bought most of his cars from garage sales, where some parent would sell a whole box of cars for $1 just to get rid of them. He know the market and was able to sell cars for way more than he paid for them.

The gem business is much different. Unless you actually find the rough stone, you will be buying at about the same price you can sell for.

Appreciate the comments Gene, what you stated is exactly what I was looking for. Trying to figure out the sweet spot in this and it appears so far that it is far and few between if not sourcing yourself and possibly faceting yourself. For me it was more of finding stones here and there, getting lucky (as with the toys sometimes) and enjoying the adventure. The first two steps for me would in my own thoughts, be gaining stone knowledge and figuring out the workings of the industry. Not a lot of sense in pursuing things if there is no spot to be in once I have the knowledge. I have limited tools so far, but in testing the current finds I can say that most of the low priced eBay items and others online are indeed glass or a lesser stone used to imitate a more expensive one (quartz pressurized with ink to similate emerald). I am learning and having fun. I thank you for the comments, much appreciated.

 

[toymantodd]

The people who sell loose gemstones 99.9% of the time know exactly what they are selling so the chances of snagging a bargain are few and far between, which is why I do jewellery. More often the seller doesn’t know (or care sometimes) what they are selling and a good eye and taking a measured chance often pays off.
Not always though.
My “gem haul” was a complete fluke, I had no idea there were gemstones in rusty old tins!
I have since bought various pieces of gem equipment including a microscope and I have spent many enjoyable hours studying inclusions. There is a wealth of information online to help you learn more.
I started here on Pricescope delighted with my purchase of a spessartite garnet ring.... except it wasn’t! It was synthetic corundum. I didn’t even know back then that they made lab grown sapphire in vivid orange!
still love the ring though.

I looked at the online wholesellers of settings, etc. and with my current hobby skills I don't see it as impossible for me to learn the skill of setting stones into rings, etc. as I do a lot of fine small hobby work now on miniatures, etc. When I look at prices online at reputable dealers for rings, etc. and then I do the math of putting the same ring together myself I see a possible workable margin, especially on the stone part so I can see your angle. The problem is of course not in the putting it together (once the skills are had) but in selling. Do you do this for all pleasure or is it a side hustle?

 

[toymantodd]

I think maybe test the waters by creating an Instagram account, see if you can move any of the items you currently have. Then I would go to a lot of gem shows, I think you need to see a lot of gems in person before you get a feel for it.

This forum will not cut it as an intro into gem selling and buying. Simply because to make a profit you're going to have to buy from overseas and resell locally. People on pricescop are often looking for one engagement ring or a few purchases and then done. It makes no sense for them to risk sending all the money they have for this one ring by wire transfer to nigeria in the hope the stone that is 20% cheaper listed on instagram, will be a nice one. But if you were to make money trading gems that is what I think you'd need to do -- take the risk, spread it out over many transactions, and resell for the higher price with a full returns policy locally in the US.

Otherwise the only other route is to have wholesale partners, who are happy to transact with you because you move plenty of stock and they can send you a parcel at a time. Again this forum isn't the place to find them. I would have gone to the Las Vegas show (along with someone I knew could introduce me) if I wanted to find these kinds of contacts.

Like others I perceive this as tricky, I'd at the very least have tried buying for personal enjoyment for a couple of years first. You can buy a lot of junk which is marketed as expensive gems.

Thank you for the comments, much appreciated. I see your points and agree. When I started the toy business the advantage I had was in product knowledge without having to study, I had a lifetime feel for it. here is another story. The shows will be on my list and fun activities while learning and getting a feel takes place. The "book" learning I also find enjoyable. I have started testing and you are certainly correct in the statement that you can buy a lot of junk which is marketed as expensive gems. Most of what I have tested myself and had experts look at is either glass or another stone used to represent something better. However there have been some small scores already and that continued hope is exciting. Finding a niche to allow for a paying hobby or addition to my current side hustle is hard to do while learning, but I feel important. I am not skipping steps, just trying to find value in position as I learn. My private collection and some learning will go on no matter how deep I go into dealing or other avenues. I love it all in fact and concept but even with only a few questions and answers on this forum it's easy to see that this is a tricky venture as you state. The friendship knowledge base here is appreciated deeply as a newcommer either way

 

[Bron357]

I buy for my own collection though on the rare occasion I sell something I usually don’t lose money.
Because of the gem haul I have been on the lookout for suitable pre loved settings for a few years now. Hard to find, most require some prong adjustment to accomodate the gem but I try and buy the correct ring size (extra costs to alter ring size).
In terms of a business venture, certainly many people make money out of trading jewellery but it involves both a lot of leg work (finding suitable items) then marketing and waiting for sale. Trends come and go in jewellery so you need to keep on top of that too.
Selling jewellery and gemstones requires trust from your buyers and you trusting your buyers. There is a lot of fraud and deceit “out there” and jewellery and gems can attract the undesirable.
Best to stick to buying gemstones as a hobby.
Here are some of my gem haul gems set.

 

[toymantodd]

Hi again,
here is an update on just the eBay piece in case you are curious; 66 loose gemstones purchased over the last 7 weeks from about 12 different sellers. 5 stones tested to be actual gemstones, however all but one were not correct in description. 3 were actually better, one was not. Everything else was glass with the exception of a piece of quartz that had been dyed with green to simulate emerald with major inclusions. I was told it is done in a pressurized chamber by an opal dealer that is helping me.

So, the numbers are not great. Two of the dealers gave me my money back without any hassle, I am pressing eBay about the rest....

Not a fun use of time, but on the good side I gained experience testing a lot of stones

I like the 3rd picture. What is it, Tanzanite? It is very nice! Good for you in finding that.

Yes, you are probably right, a hobby certainly looks like the cieling for now. If I can make it a paying hobby though, I will be happy.

Thanks for the conversation.

 

[Bron357]

It’s actually a vivid purple sapphire. I have 3, that’s the biggest.
I scored a gem haul by complete luck a few years ago. No idea the rusty tins contained gems, thought they might be buttons or beads.
Since that find I have totally immersed myself in studying gems by buying various pieces of testing equipment and reading reading reading. I have, and still am, enjoying this new hobby. My DH is currently studying Geo Science part time (he’s got a career/ degrees in Finance) and we intend to go gem hunting in retirement. I intend to learn facetting eventually.

 

[qubitasaurus]

Thank you for the comments, much appreciated. I see your points and agree. When I started the toy business the advantage I had was in product knowledge without having to study, I had a lifetime feel for it. here is another story. The shows will be on my list and fun activities while learning and getting a feel takes place. The "book" learning I also find enjoyable. I have started testing and you are certainly correct in the statement that you can buy a lot of junk which is marketed as expensive gems. Most of what I have tested myself and had experts look at is either glass or another stone used to represent something better. However there have been some small scores already and that continued hope is exciting. Finding a niche to allow for a paying hobby or addition to my current side hustle is hard to do while learning, but I feel important. I am not skipping steps, just trying to find value in position as I learn. My private collection and some learning will go on no matter how deep I go into dealing or other avenues. I love it all in fact and concept but even with only a few questions and answers on this forum it's easy to see that this is a tricky venture as you state. The friendship knowledge base here is appreciated deeply as a newcommer either way

Honestly if you're having fun and youre not out serious money then life's short and you shouldn't let anyone stop you. Just as long as you never put more money in than you can afford to lose.

I'd try to look on instagram for sellers who are closer to the source/or gem cutting locations. See if you can buy tourmaline, garnet and spinel first. As cheap sapphires, emeralds, jade and rubies are often treated, or utility/fish tank gravel quality. The sellers in these locations generally won't take returns, even if they say they do, and many will have you pay wire transfer or another way where you can't get the money back by challenging the transaction. So its kind of inportant to first get an eye for whats too good to be true, and to only spend what you can afford to lose. Also try to buy stuff you'd be likely to be happy to keep yourself. As building up a clientel will also be hard, so you may be keeping these for a while.

Edit actually I think I just put my finger on something that is bothering me as i wrote that. I think you're already seeing that with gems it's hard to see what's real and what's not by just looking at pics. You see this injunction/warning that its shockingly difficult to read gem pics to spot a fake/treated gem in several of the comments above too. Because of this the gem business tends to run on trust and on personal reputation. So it's not going to be the same as reselling toys actually, as you need to build the reputation and also be connected into the network of people who are parts of the legitimate supply chains (they're there but you'll need to meet them, often need to be introduced to them even). Just realized someone should say this -- just upfront in case there's some confusion that it'll be the same business model as reselling toys. I'm pretty sure it's not. But as long as that's upfront I personally think one gets places in life by giving stuff a go.

 

[Bron357]

Have a look at JammingGems.com they sell pre notched semi mounts for rings / earrings etc plus tools.
Settings in sterling silver are quite cheap.
The main issue with setting gems in semi mounts is their size. You’ll find that you need “standard” measure gems to use pre made settings. Rounds are easiest, there is some tolerance for a 6.2 mm gem going in a 6mm round setting or a 7.95mm going in an 8mm round setting,
Likewise oval shapes are a bit more forgiving, harder are the emerald/ rectangular shapes. More unusual shapes like trillion or Marquis there will be much less choice.
Pre notched settings have the “seat” for the gem girdle already done, you just have to “bend” the prong over (you need a tool for doing this). Otherwise the semi ring mount prongs need filing to create a seat, this is much harder and requires more tools and more experience. You’ll wreck plenty of settings learning!
Otherwise you get a jeweller, with whom you have a good relationship to get good prices, to set your gems. Setting a gem can cost between $50 and $400 dollars.

 

[LilAlex]

So, how is it possible for a dealer in India to auction off a stone for a few dollars and send it to the USA with free shipping? I mean, even if it is 100% fake/costume it still makes no financial sense and when it turns out to be real...I just don't get it.

This is the wrong forum for that business niche and price point. All of your potential buyers here are way ahead of you, knowledge-wise. You are comparing yourself to the online scammers and asking us what their secret is. I think you found some of it -- selling glass and calling it gems. There are billions of one-time buyers to fool if that is what you are looking for.

Short of lying/scamming, I do not see a way for someone with no specialized knowledge, or special access, or a ready shipping pipeline (e.g., side-hustle for an already-thriving international sales/shipping business) to monetize this business model of buying random gems online and then reselling them online for a higher price.

 

[Voodoo Child]

Short of lying/scamming, I do not see a way for someone with no specialized knowledge, or special access, or a ready shipping pipeline (e.g., side-hustle for an already-thriving international sales/shipping business) to monetize this business model of buying random gems online and then reselling them online for a higher price.

Ehh, he miiiiight, by doing very small markups and going for volume, but like others have pointed out, this isn’t very realistic. I have a friend that runs a similar model with used tools. He makes a little bit of money from it, but not much. For him, the “profit” is in interacting with people.

 

[toymantodd]

This is the wrong forum for that business niche and price point. All of your potential buyers here are way ahead of you, knowledge-wise. You are comparing yourself to the online scammers and asking us what their secret is. I think you found some of it -- selling glass and calling it gems. There are billions of one-time buyers to fool if that is what you are looking for.

Short of lying/scamming, I do not see a way for someone with no specialized knowledge, or special access, or a ready shipping pipeline (e.g., side-hustle for an already-thriving international sales/shipping business) to monetize this business model of buying random gems online and then reselling them online for a higher price.

Hello, thanks for the comments back/dialog, however, I think you got confused somewhere along the way....I am not comparing myself to online scammers and asking what there secret is. I am a broker by trade and do reselling as a side hustle. I am thinking about expanding our jewellery section anmd if possible doing a lot more with gemstones. As I learn, i am also trying to figure out the business side of it, to see where a possible fit for us might be. I want to "scam" nobody as you put it. I merly made an observation as to the activity i have seen first hand on eBay and other sites and am curious about what is going on. As stated " how is it possible for a dealer in India to auction off a stone for a few dollars and send it to the USA with free shipping? I mean, even if it is 100% fake/costume it still makes no financial sense and when it turns out to be real...I just don't get it."

Obviously, over the last few weeks you are correct, I have found out what is mainly going on, they are selling glass as lab created gemstones and just plain lying to people...not an activity I wish to replicate.

However, in all the purchases made in the last few weeks, 5 turned out to be very positive. Gemstones that could easily be sold for many times what was paid. How and why this result happened, I have no idea and it certainly isn't something that could be relied upon. That's what has my curriosity, not to replicate scamming people.

Lastly, when you made the staement "I do not see a way for someone with no specialized knowledge, or special access, or a ready shipping pipeline (e.g., side-hustle for an already-thriving international sales/shipping business) to monetize this business model of buying random gems online and then reselling them online for a higher price."

You are certainly correct and I agree, that's why I am searching for all the realities and foundations, to then be able to "play" in one area if possible. The knowledge will come and is planned as I have stated. Just because I currently don't have it doesn't mean I can't get there if passionate enough. There are lots of hidden treasure to be found at general auctions in jewellery, toys, tools and etc, that's already proven by my current business model.

Thanks again for the conversation, I wanted to be clear on intentions, certainly not to scam anybody or replicte false dealers. I also am not looking for clients here on these forums, I am looking for conversation for those in the hobby/business side of gemstones.

 

[toymantodd]

Ehh, he miiiiight, by doing very small markups and going for volume, but like others have pointed out, this isn’t very realistic. I have a friend that runs a similar model with used tools. He makes a little bit of money from it, but not much. For him, the “profit” is in interacting with people.

Spot on.

As I have tried to state, I am in the process of gaining knowledge/doing the so called book work. As I dive in, I am looking at the entire business picture trying to see where a possible fit might be to make some money, as you state your friend is with tools. To begin with, it would clearly be a paying hobby, something that is never a bad idea. If I can turn it into more, awesome.

I have bought 66 gemstones now from India (online) and tested all with the few pieces of equipment I own. 5 were gemstones worth much more than I paid while the rest were 1 piece of quartz with green dye to simulate an emerald and 60 pieces of glass. Easy scam to now see and understand, selling glass as a lab created gemstone and then claiming ignorance when called into the pricipal's office.

I want to start by learning and enjoying the journey while building a collection. If I can sell some to "fund" my own collection I will be happy. If I can find an area to go forward in business wise and move it in with what i am already doing, even better.

Thanks for the coments and chat

 

[toymantodd]

It’s actually a vivid purple sapphire. I have 3, that’s the biggest.
I scored a gem haul by complete luck a few years ago. No idea the rusty tins contained gems, thought they might be buttons or beads.
Since that find I have totally immersed myself in studying gems by buying various pieces of testing equipment and reading reading reading. I have, and still am, enjoying this new hobby. My DH is currently studying Geo Science part time (he’s got a career/ degrees in Finance) and we intend to go gem hunting in retirement. I intend to learn facetting eventually.

AWESOME! Love your collection. I will share some pics back when I can. Thank you for the positive chatter I am sure you had fun putting this together!

 

[LilAlex]

Got it -- meant no offense. Or maybe I sort of did but you have now explained your intentions more clearly.

There are lots of hidden treasure to be found at general auctions in jewellery, toys, tools and etc, that's already proven by my current business model.

I do not think gems are like any of these other things. It is hard to fake coins, stamps, antiques, tools. Not hard hard -- but one needs to be really intentional about faking a patina and knowing exactly what the original looked like and it is often not cost-effective to make a good fake. For gems and jewelry, you can make passable fakes for pennies all day long...

Even the super-savvy sellers struggle to successfully carry off the kind of arbitrage you are proposing. And if you have not established yourself as a knowledgeable purveyor of gems with expertise and reports, etc., you will not inspire any greater confidence among potential buyers than the low-end vendors you are trawling (trawling, not trolling).