Roughing it: Buying at the source: How hard can it be?

by charlene_voisin | August 1, 2013 9:00 am

By Lisa Elser

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When I started my gem-cutting business, finding rough material that met my standards (and my price expectations) had proved to be difficult. Stones I bought from online dealers—both in the United States and overseas—were not as advertised and returns were impossible. I’d been pounding the ground in Tucson trying to find high-quality gem rough, but the only way to get at the good stuff was to know the dealers. Unfortunately, I was new in the business and didn’t have the contacts to get me into the private rooms or behind the counters where the ‘Big Boys’ bought.

I had, however, years of experience working in Africa. I was with a computer company at the time, but felt confident I could travel safely and navigate the difficulties involved. My husband, Tom, and I love to travel, and are serious bird watchers. We could go to gem-producing countries, buy rough, look for birds, and get better results sourcing stones than going through local dealers.

That was years ago, and I still travel to buy most of my rough goods. It’s enormously satisfying to be ‘boots on the ground’ in gem-producing countries. Tom and I squeeze in some pleasure travel amid the sourcing, and we’ve made lasting friendships while doing it. Not only that, but we find gem rough we’d never see otherwise.

I learned on my first buying trip that all the same problems I’d found buying at home applied. I could not get to see good material until I’d made connections and proven myself. Further, things were often not as represented, price negotiations were intense, and once agreed, there was no backing out and no returns. We also found a whole collection of other difficulties to navigate. If you are considering an overseas buying trip, here are some key things I’ve learned from my adventures that can help make it a more successful endeavour.

Take time to prove yourself

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You can’t just wander up with cash and expect to be taken seriously. It takes time and effort to prove you deserve a place in the market.

In Antananarivo, Madagascar, our contact had arranged for dealers to meet with us at our hotel and we were able to set up shop on a large balcony. Most of the cut stone dealers sat at tables, but the rough dealer insisted on taking me into the hotel room. He and four or five of his group pushed a bag of horrible apatite weighing one kilo into my hands. “Buy that,” they said, “or we won’t show you anything else.” It took nearly half an hour for me to finally lose patience and get up. Unless they showed me something worth buying, I was leaving. Then out came a few pieces of better material and I did end up buying one for a fair price.

At the gem market in Ratnapura, Sri Lanka, I was standing on a bridge trying to get a break from the dealers and runners (i.e. those who carry stones for other people). They were so insistent that I felt like I’d brought saltines into a petting zoo enclosure. Everywhere I turned, someone pushed stones into my hands. One man came onto the bridge and handed me a sapphire. I could see the curved straiae without a loupe and passed it back saying, “It’s synthetic.” He kept trying to get me to take it. Finally, a well-dressed man speaking excellent English came up and said, “You’re right. Would you like to see something better?” He and I ended up doing business.

Our broker, however, was offered outstanding alexandrite. I ended up buying it from him days later—”¨I hadn’t seen him being offered the gems right next to me on the bridge! He’d earned his place there and I had not, so he got the good stuff, even though I would have paid more for it.

Proving yourself is key to getting anything worth buying. Everyone would like to sell their bad material for a good price. (Hey, wouldn’t we all like to do that?) Until you convince them you know the difference between good rough and bad, you will likely only be offered the latter.

 Know your stuff

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It’s unfortunate to hear North American buyers complain about the lack of ethics in other parts of the world. It’s not that they lack ethics; it’s that the ethical standards are different. In Canada, I’m obligated as the seller to know and to disclose important information about my gems. In much of the developing world, it’s the buyer’s obligation to know what she’s buying. Outright lying—if you can prove it—is wrong, but many people showing gems honestly don’t know what they have, only what they were told.

I’ve been buying in the field for a long time, and still sometimes buy a gemstone I shouldn’t. The stone in the photo at the top of page 3, cheap, and pretty, but I didn’t pay it too much attention, and it was glass. Fortunately, I didn’t spend a lot of money on it.

I travel with a stealthy portable lab and test everything before making an offer. It’s no one’s responsibility but mine to know what I’m buying, and what I should pay for it.

It’s well worth taking some gemmology courses and investing in a few good tools before a trip. If you can’t trust yourself to test a gem you’re buying, only purchase it as a souvenir. It will make a great story to share with your customers back home.

I’ve travelled with colleagues who wanted brokers to guide them, but it isn’t fair to expect that. The brokers are local; they bring me many goods themselves and let smaller sellers come to me in their offices. Beyond that, however, they can’t hold my hand. I’ll be long gone, and they will still be there working with these people. They can’t be expected to tell me something is fake, or too expensive, or too included.

When buying in the field, you’re making quick decisions and spending large amounts of cash with no recourse. Gem lust affects us all. It’s so tempting to buy things, and so easy to get a bad case of buyer’s remorse when we get home. Making lists of what you buy at home, how much it cost, and what you sell it for, can help keep the lust in check.

Be cautious when buying at mines

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How amazing it would be to go to a remote mine, find gems right out of the ground, and buy directly from the miners. Pretty amazing indeed, but it rarely works that way.

Our first visit to Tanzania saw us spending five days at an alluvial mine in the Umba Valley. It was wonderful; we got to work closely with local miners, buy from them and the Maasai tribes people, and even try our own hands at digging.

What we didn’t get was amazing material. The mine owner sold us some excellent goods, but he was only at the mine because we were. Normally, alluvial miners sell their finds as soon as possible, often to the mine owner. Mine owners or brokers take the rough to the city and keep it there.

There’s no better place to buy synthetics than at the mine—the likelihood of finding good gem rough there is extremely remote. Don’t get me wrong. I love going to mines. We’ve been in remote mining regions all over the world, and I never miss a chance to see new mines. I just don’t expect to buy much there.

Build good relationships

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When choosing a new country to visit, I have to consider who I know there and how I can work with them.

I was having tea one evening in Tanzania with an acquaintance who asked me why I would work with a broker. It meant I was paying more for the rough gems than I would going to the gem market and buying on my own. For me, it’s an easy answer. By working with one or two brokers and giving them the lion’s share of my business, I not only get to see far better material than I would on my own, but it will only take a week to buy stones, rather than the month it takes my colleagues.

One year, my primary broker in Tanzania asked if I was interested in a high-end piece of sapphire rough. I was. The owner got on a bus and rode eight hours to bring the goods to me on the strength of my broker’s recommendation. He knew I had the money, and that I appreciated fine rough. I did buy it, and cut it into an amazing 7.87-carat colour-change gem.  

My brokers arrange for rough to be waiting for me, give me a safe, clean, well-lit place to work, let other brokers, miner owners, and dealers know that I’m in town, and handle translation and payment for me. A good broker is the difference between an okay trip and a fantastic one.

Respect the local culture

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Of course I respect my brokers—how I conduct myself in the office, and even in the city, reflects on them. My clothing, manners, and trustworthiness all make a difference in how successful a trip is. Respect for the culture is an important part of respecting your local colleagues.

Many of the places I travel are tough for women; dress codes are conservative. For instance, I haven’t shown my knees, shoulders, or arms above T-shirt sleeves in Africa or Asia in a decade. A little respect for local mores goes a long way. Last time I flew home from Arusha, Tanzania, the couple next to me at the check-in counter was wearing short-shorts, beach tops, and flip flops. When they left, I commented to the agent that it made me sad to see Americans dressed so disrespectfully. At the beach, sure, but Arusha is a dressy city. She looked at the man behind her, they spoke in Swahili for a moment, and then she upgraded me for the first leg of my flight.

Although I buy much of my rough from my brokers directly, I always spend a few days seeing other sellers. People wait often for hours to see me. I owe each of them courtesy, no matter what they’ve brought.

When something is vastly overpriced, it helps to say, “I hope you have success with that,” instead of, “Are you nuts?” Assume the seller is acting in ignorance when he presents a synthetic. Never bargain in bad faith. Before making any offer, I test the goods. If I make an offer and it’s accepted, it’s too late to test. I’m expected to pay for it regardless. Everyone who takes the time to see me deserves my respect and courtesy.

Be organized

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It’s always true that only I am responsible for my purchases, but when buying overseas, there are even fewer safeguards than at home and gem lust can be overwhelming.

I use a spreadsheet to track my purchases and the money I’ve spent, but that wasn’t always the case. Many years ago in Tucson, I negotiated hard for a parcel of excellent rough, only to discover at the end that I’d made a simple arithmetic error and dropped a zero. It wasn’t a $1000 parcel—it was a $10,000 parcel. It was humiliating, to say the least, and I backed out of the deal, apologizing profusely. The seller thought it was hysterically funny and we’ve become good friends.

Had that happened in Tanzania, Madagascar, or most other places I buy, it would have been relationship-ending. It’s easy to forget how wealthy we all are compared to most people in the developing world. My Tucson friend could enjoy my embarrassment and not mind so much the ‘loss’ of $10,000. The person who’s been promised $500 in Madagascar has already told several other people who have an interest in the stones during the course of negotiation, and in a country where the average salary is less than $200 a month, that money is a fortune. Backing out of a deal humiliates the seller and broker, and represents a real hardship for the people involved.

Have your tools, money, baggies, and other important things handy. You may well be working on your feet. Keep excellent notes and record all purchases. Check your money each day to be sure you know what you have available.

Enjoy the journey

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Don’t forget to have fun. Yes, it’s a work trip, but make sure to see something of the country. National parks, archeological sites, local eating places, and just meeting the people are a big part of the experience of travel.

I love cutting gems, seeing clients, and so many other aspects of my work, but my overseas buying trips are by far the most enjoyable and exhilarating parts of the business.

Whether or not it makes financial sense for someone to travel each year to buy, going once or twice to experience the countries that provide our gems offers a chance to see first-hand just how hard it is to produce high-quality stones. Meeting the people who mine, broker, and cut those gems, as well as seeing how they live, instills a new appreciation for the gems themselves.

For more, see Dos and don’ts of buying abroad.[10]

Lisa Elser is a professional gem cutter and owner of Custom Cut Gems in Vancouver. She trained in Switzerland after a career in IT consulting to some of the largest banks and insurance companies in the world. Elser and her husband travel the world to buy rough gems, working to ensure the stones purchased are ethically mined and benefit local communities. In 2013, she won an AGTA Spectrum Award for her 14.24-carat Nigerian tourmaline, which is in the permanent collection of the Smithsonian Institution. Elser can be contacted at lelser@lisaelser.com.[11]

 

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