Sarin - Learning More about the Tools

[scuttlebutt]

Hi all,

I'm currently doing a company analysis on Sarin, and frankly, the tools they use can be rather technical or specific for a person unfamiliar with diamond evaluation, such as myself. I decided to post a couple of questions regarding Sarin here to better learn about the tools they offer and where they stand in the industry. Who better to learn more about them, than from the diamond experts here, yes?

Quick introduction on what I know - My knowledge on how a diamond is valued is very, very basic.. pretty much that they are valued based on the 4 Cs. From what I have read, Sarin's tools automates the process of evaluating these 4 "C"s.

So, these are some of the queries I have:

1. What are Sarin's more popular tools in today's day and age? Which ones are the most used in gemmological laboratories and diamond manufacturers?

2. Focusing on Sarin's product suite, particularly the more popular product, is Sarin an industry benchmark? Meaning, are they so widely used that they have become the "standard" in diamond evaluation?

3. How expensive are these tools in general? Is it something that anyone can get off the shelf, or is it in the order of hundreds of thousands of dollars?

4. What are substitutes to Sarin's tools? Are there cheaper alternatives? Also leading on to this, who are Sarin's major competitors? Or are they pretty much the monopolistic "Apple" of the diamond evaluation industry.

5. In general, who buys Sarin's tools? Is this a one-time investment such that once a firm buys it, it doesn't need any further upgrades or add-ons?

6. This one may be slightly vague but - what would diamond evaluation be in today's world without Sarin's tools?

7. This one could also be a bit more financial but, what is the outlook on the diamond industry in this day and age? With recent slowdown in global economies, how active is the diamond industry? Has there been a dramatic slowdown following the GFC?

Thanks in advance, very VERY much appreciated!

 

[denverappraiser]

This sounds like a college paper so I’ll give you a bit. You might want to contact Sarin directly for some of this although they may not be all that cooperative for competitive reasons. It doesn’t hurt to ask. They aren’t a public company and their stockholder reports aren’t available but I suspect much of what you’re asking for can be found in their advertising. Start at their website.

As you point out, Sarin Technology makes a whole list of products ranging from proportion measuring devices to colorimeters to software. I wouldn’t venture to guess what sells the best of which is the most profitable but in popular usage when you see the word ‘Sarin’ used, it generally refers to the Diascan S+ or one of the previous versions of this tool. They’ve been making these (or things like them) for 20 years or so and have definitely had a major impact on the diamond industry. They are the biggest player in the business but I don’t agree that they have a lock on the market as you suggest. A better analogy might be with Kleenex than Apple. Everyone knows the name, the products are popular, and the name is used generically to describe the category but there are definitely other players. Some major competitors are Ogi Technology and Octonus. Both are easily found with Google.

 

[scuttlebutt]

Thanks buddy, much appreciated for the reply. You are correct, this is for a university paper I'm doing.

Sarin is publicly listed on the Singaporean stock exchange but I wanted to actually learn more about the company through the opinions from the general public and users of Sarin's tools. Annual reports alone tend to be bias (in the company's favor) so I wanted a more independent view.

Some thoughts about what you mentioned about OGI Technology and Octonus, how big are they compared to Sarin? Are we talking a disproportionate figure where Sarin takes home 90% market share, and the other two fights for a small, negligible portion?

Also, would you happen to have some color on how the diamond industry as a whole is doing?

 

[denverappraiser]

I think Sarin is the biggest but I don't know by how much and I'm not going to venture a guess. They're certainly the oldest. Octonus is the 'best' and is usually the chosen product for the very high end. OGI is the cheapest. They're popular with retailers and appraisers as well as cutters who are a bit more price sensitive.

IDEX Online, Rapaport and JCK are goods place to get industry intel.

 

[scuttlebutt]

Thanks buddy for the reply. You're right, seems like Octonus is the premier brand when it comes to the diamond evaluation tools, but it is the most expensive.

Thoughts from anyone else?