Colombia native Jose Rodriguez owns Queen Emerald, which
has its main store in Bogota. The decades-old family-run company
also has a convenient shop inMiami, Florida, but at this point,
all business takes place online. The brand is known for its custom
high-end Colombian emerald jewelry, which he and family
members source locally. The whole country was on lockdown for
months, Rodriguez says, but it is slowly opening up again.
Still, he points out, “everyone in Colombia is extremely
cautious, as the health care system there is very fragile.” The
emerald district has become very quiet, “with big mining
companies working withmuch fewer people now.”
Buying sight unseen
Paul Levin, owner of California-based gem dealer Tairona Co.,
has spent the past years chasing exceptional stones in Thailand
and Sri Lanka. Before that, it was Tanzania and Brazil. “I had just
returned fromAsia when the lockdown started [in the US]. To
get goods now is a challenge. People can send me stones, but to
purchase sight unseen has always been challenging.”
For one thing, these suppliers “may not be as selective” in
choosing the right stones for his clients, he explains. Then there’s
the issue of negotiating. “With pricing, I cannot see [without being
there] what others are selling in the market, so I may not always
be getting the price I would normally pay when buying there.”
Levin reminisces about the thrill of discovering stones on-site.
“Finding the deals, that one stone that canmake your trip — that
experience is all gone.”
Not everyone is finding the moratorium onmobility to be a
major obstacle, however. “In Sri Lanka, the Chinese that are still
sitting there because they could not leave send photos back to
China, and buy goods based on the photo and their buyer’s word,”
says Levin. “They are purchasingunheated top stones, so prices
are increasing due to this competitive market.”
New channels for doing business
Southeast Asia is the global hub for much of the gemstone trade,
but large trade shows are but a memory now. Between that and
the shutdown of brick-and-mortar stores, the pandemic has
caught the industry off guard, forcing it to think on its feet.
“What I have learned is how few of my clients were prepared for
something like this due to their lack of social media presence and
a good retail website,” Levin says.
A greater reliance on digital technology, photography,
videos and gemological reports are going to be the alternative
to in-person shopping and events, predicts gemologist Edward
Cleveland of GRS GemResearch SwissLab in Bangkok, Thailand.
“I see a wealth of gemstone information going online, with
educated, passionate individuals creating short videos, podcasts
and other forms of online media to promote their goods.”
Meanwhile, he says, Thailand businesses are sticking with
suppliers they know and letting international shipping do their
traveling for them. “The postal service is still moving, so traders
rely on old, trusted sources because you can’t fly out of the
country at the moment.”
Rodriguez also stresses the importance of reliable shipping
procedures. “FedEx is the only tool for handling large
exportations fromColombia now, and they’ve changed their
procedures as the crisis has taken hold,” he says. Dealers in
Colombia must buy their own insurance, and FedEx will ship only
on certain days using special boxes. “They were scared of shipping
high-value goods of up to
,
in small boxes,” he explains.
In some cases, domestic demand has taken over. “When the
international shipping network was down, the local circulation
of gems started to happen,” reports da Silva in Sri Lanka. “The
supply chain continued where there was good demand for gems
among the local crowd.”
Under the current conditions, says Johnston, “I stay isolated
and only go into town every few days. We just got our first case
of Covid- recently.”When he does venture out to hunt down
mineral specimens, he says, “I carry alcohol to wipe my hands
down like everybody now.”
Investing in the future
In the short term, traders are weighing how to proceed as they
approach the holiday season, says Rodriguez. “Everybody is
waiting to see what is going to happen through December
.
The trade is very careful in how they are investing their money.
Big mining companies that produce most of the gemstones in
Colombia are looking at investing in the final customer now.” He
cites De Beers’ efforts to expand its reach in the retail space.
The major trade fairs are where the big deals have historically
beenmade, Johnston reflects, but “when and if the large shows
come back, they will be very different — because maybe we won’t
get rid of this coronavirus at all.” To keep his head in the game,
he’s stepping up his social media presence — “and thus far, it
is working, but it’s a lot of work.” Having an alternate income
source can help, he suggests. “I’ve developed a skill set over the
past -plus years doing professional photography, [which] has
allowed me to make a shift.”
Da Silva, for his part, sees a light at the end of the tunnel.
“With the export gateways being opened again, shipping to major
destinations such as the US and EU has now begun. This will also
be a good opportunity for international sellers to buy gems at good
prices for their stock.”
Cleveland is hopeful as well. “The situation is uncertain for the
moment, but people will never stop buying beauty.”
IMAGES: ZION DA SILVA; CHRIS JOHNSTON
SEPTEMBER
DIAMONDS.NET
