Conflict free diamonds certification

Jewelry Discussion
21 
I never thought I would be defending the politically correct but I
feel this is beyond being politically correct. It is a matter of
compassion.

Yeah, Victoria, I saw 60 minutes, too - bad stuff. Related to that
was another story about ship dismantling in Bangladesh a while back.
Same sort of thing. I doubt that anybody but the crooks support that
sort of thing. But here in San Francisco we have activists in the
streets, literally. “Look, these 15 year old girls are only being
paid a dollar a day to make underwear!!” And just like
the-good-old-days nostalgia, they don’t look at the fact that the
dollar buys a meal for 4 in the local economy. They only see the
dollar, and think it’s America. The older you get, the more you
travel, the more you actually talk to people, the more you find that
nothing is simple, there’s usually no white hats and black hats.
There’s lots of bad in the world, but everything has context, too. I
know a young man who lived in villages in the Amazon basin for
around 15 years, on and off. They’re not oppressed natives to him,
they are a people with a proud heritage, they just don’t have tv
sets. Context…And I believe that little by little the world’s
people are getting better of, mostly.

22

i think what leonid is getting at is " LIABILITY " what is happening
withthe kimberly process is that this process is a kneejerk response
because of a famous film.

the concept of making an assurance that is not true makes the
promisor “LIABLE” i think the point was from leonid that you could
face a “lawsuit” if the kimberly process is deemed unworthy in the
future. “liabilty” are you willing to take the heat for?

goo

23 
If client requests something, no matter what we may think of it
personally, we should not decide for the client.

I pretty much agree except that sometimes you have to enforce your
own boundaries too.

24 
it's my belief that this attitude will lead to a far longer and
harder economic period for everyone.

Yeah well I’m in the middle between trickle down and trickle up. On
the trickle down side you have AMEX now becoming a bank to exploit
bailout funding. Good grief that’s disgusting. On the trickle
up…wait, I don’t see any trickle up.

When Joe the Senator walks in here and tells me, “Here’s a pile of
dough for YOU, Neil” I might restart capital spending (unlike many of
the banks that have received the funds but continue to be tight
fisted). In the meantime I’d like to keep my findings guys paid so
they’ll ship me next month. I can survive on repairs, fre$h inventory
won’t help me just sitting there looking pretty. Draw down my
reserves for a philosophical viewpoint? I don’t think so. Although I
agree with your statement above can any of us really afford to be
among the first to risk big spending with an uncertain future? What
if you’re the only one who spends?

Sales for the year are up 20%.

My year is way up too. Even a dismal Christmas won’t give me a
negative number for the year. However, future spending depends
entirely on future income. Surviving in this biz has as much to do
with cash flow as it does with profit. Manage cash flow carefully
during the down cycles and you’ll be ready to profit on the up.
Obviously you still need to produce profit in the down, but your big
killing will come later, if you’re there. I plan on being there.

25 
i think what leonid is getting at is " LIABILITY " what is
happening withthe kimberly process is that this process is a
kneejerk response because of a famous film.

Actually, goo, just to set the record straight, the film came out
well after the Kimberly Process was already in place. It was a
reaction to the NGO’s constant nagging that got the Kimberly Process
set up.

the concept of making an assurance that is not true makes the
promisor "LIABLE" i think the point was from leonid that you could
face a "lawsuit" if the kimberly process is deemed unworthy in the
future. "liabilty" are you willing to take the heat for?

And, while I am the first one on list to remind everyone to dot
their i’s and cross their t’s when it comes to legal dangers, I think
any decent lawyer should be able to make a pretty sound case that the
Kimberly Process is an internationally accepted solution, and even
accepted by the NGO’s that helped to get it set up, and that any
jeweler who at least has insured that his diamond suppliers are
acting in accordance with the Kimberly Process will not have a
problem with lawsuits.

Hey, the JVC now even claims that you wouldn’t be subject to legal
actions if you don’t disclose the heat treatment of ruby. If you
couldn’t get sued for that, I’m not sure how anyone could really
bring a case about the diamonds.

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC

26 
Draw down my reserves for a philosophical viewpoint? I don't think
so. Although I agree with your statement above can any of us really
afford to be among the first to risk big spending with an uncertain
future? What if you're the only one who spends?

Perhaps my comments were too broad. While I wasn’t advocating wanton
spending and running up huge debts, I was saying that to stop buying
altogether is an overwhelmingly extreme reaction that will only
create more problems. I have been reading comments in the papers from
more and more people who are saying, well I’m just too scared so I’ve
stopped spending on everything except food and rent. Well, who’s
going to keep them employed if everyone takes that attitude? Have I
monitored my expenditures more closely? Of course, but then I started
doing that awhile ago (well before the “economic crisis” became so
apparent). And frankly, closely watching the expenditures is good for
you whether times are good or bad. But you can’t sell something if
you don’t have anything to sell. You can’t sell if you aren’t doing
some kind of marketing for yourself (even if this is not advertising
but simply servicing the heck out of people as I know Neil
does)—most savvy marketers actually boost their advertising
expenditures during hard times. So to stop spending altogether
doesn’t do anyone any good. Moderation in all things is still a good
motto.

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC

27

If client requests something, no matter what we may think of it
personally, we should not decide for the client.

I pretty much agree except that sometimes you have to enforce your
own boundaries too.

A long time ago, I had a client come in with an idea for a ring in
which a large center sapphire (that he had purchased elsewhere) was
set. He wanted me to set it in a way in which it was pretty much
guaranteed to fall out. I argued endlessly with him about it, but he
insisted that it be done that way. I made the ring up using his
specifications. His fiancee took it to another jeweler (she,
incidentally, had been in on the whole thing from the beginning so
she knew my objections) who took one look at it and said, rightfully
so, “that stone is going to fall out”. So she brought it back and
said “the stone is going to fall out”. I said, “yes, that’s what I
told you”. She said “well if this other jeweler said it’s going to
fall out then you have to make it so it won’t” (logic doesn’t always
apply in retail situations). Because a) I was a lot younger and a bit
of a wuss at the time, b) because I have always guaranteed that my
customers be happy with their custom work and c) because I didn’t
want even more people (or jewelers) to see this ring and have my name
associated with it, I redid the ring at no charge.

Morals of the story: If a client requests something stupid,
sometimes we are forced to decide for the client. If a client
requests something stupid, sometimes we have to educate them. If a
client requests something that we don’t agree with, we do have the
right to point out the other side. There are, of course, perfectly
nice ways of pointing out these things. I would generally encourage
people to approach it that way as opposed to saying it’s stupid (no
matter how much you have to grit your teeth to not say it).

If client requests something, no matter what we may think of it
personally, we should not decide for the client.

The other question that comes up on a statement like this is: What
happens if a client comes in and insists that they want to purchase a
diamond that does, in fact, have a bloody history? Do we then go out
and source a stone that is guaranteed to have had someone die in
order to get it, because we shouldn’t be deciding for the client?

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC

28 
i think what leonid is getting at is " LIABILITY " what is
happening withthe kimberly process is that this process is a
kneejerk response because of a famous film.

I think so, Goo, except for two things that aren’t at odds with the
above. The Kimberly Process predates “Blood Diamond” by some five
years. The worst part is that those issues in the movie were gone by
the time it came out - large scale, that is, there is always
something. And I have no liability because I make no promises. “To
the best of our knowlege.” “Yes, these stones are made under the
process, but that’s only as good as it is.” Only a real idiot would
say definitively that a diamond went from here to there, unless they
personally carried it. “You want a paper? Anybody can make a
paper…” Take the process for what it’s worth, or buy an
amethyst… Almost nobody who comes to me (or some friends who move
a lot of stones) even asks to begin with, frankly. Reasonable people
doing reasonable things…

29 
He wanted me to set it in a way in which it was pretty much
guaranteed to fall out. I argued endlessly with him about it, but
he insisted that it be done that way.

One of Daniel’s hot topics, I see. ;<}

I can put it in much clearer terms, as I say when necessary: If they
were jewelry designers they wouldn’t be here. Not only is the
customer NOT always right, they are rarely even close… This meaning
design and manufacture, not counter sales. It’s my job to make a
quality piece of jewelry, not to be someone’s monkey, especially
when they are utterly unqualified. A senator said it once, “It’s not
our job to follow the will of the people, mostly. Our job is to try
to lead the community into a better world.” That’s what we pay them
for… My job is to either design jewelry (and make it) or to take
someone’s idea and turn it into something fine and wonderful. If
they were jewelry designers, they wouldn’t be here…

30

Daniel,

we are twin sons by different mothers.

I think we’d agree there is a kind of collective consciousness out
there that we have to deal with. Whether folks are genuinely and
immediately effected in the bankbook by what’s going on, the
certainty is that they have or shortly will, cut spending. They have
the mindset to be conservative, nothing I can do or say will affect
that, it will change in its own good time. Like many recessions it
kind of waves around the country (the world in this case) and will
impact you at a different time and perhaps in some different way than
it will me(or Joe The Jeweler in Tulsa).

Everybody’s clientele is a bit different than the next guy’s. My
people mostly hop the train to NYC where they(hopefully still) have
finance or stock related jobs. Quite a few others are in local real
estate. So even if they are still working maybe their department
already suffered layoffs or they discounted their bonus or their 401K
took a nosedive, and they’re going to be careful, Can’t blame them.

So, we’re faced with what to do.

In the past what has often caused me the most trouble is the one-two
punch. If you take just one big hit and you have reserves you stand a
good chance of getting back up. Use up those reserves and then get
slammed again you are in for a spot of trouble.

As I see it, a business has three sources of capital. Cash on hand,
future sales, and credit. Forecasts for future sales are shaky at
best, basically its ‘who knows’? Credit, umm I wouldn’t count on bank
credit, trade credit yes but even that’s going to get scarcer as some
players just won’t be able to offer the terms we once got because
they can’t get the terms from their bank, maybe. Cash on hand. I
think its wise to try to keep it ‘on hand’.

Like you say I service the heck out of my customers. The very
essence of goodwill. Doesn’t really cost me much more to do so, at
least not as an identifiable line item. The long term benefit is that
it has a momentum all its own. I don’t have to spend $whatever ad
budget just to get people in the door. People are walking in here
concerned about how I’m doing. People like to buy from friends, a
basic sales fact. The new guy about to open his high expenditure
jewelry store down the street doesn’t have that kind of goodwill
(Talk about bad timing!) It’ll take him some 2-3 years to begin to
gather it. Will he make it thru the recession? If he has considerable
capital lying around yeah maybe, but what kind of hole did he dig for
himself?

I’m doing OK because I PLANNED for this. I knew the economy would
tank at some point. It always does! I just didn’t know when and I
certainly didn’t see this coming until it did. Its easy to make
money when things are good but they don’t always stay that way. By
remaining financially flexible (ie. avoiding high debt) my business
doesn’t have the stress on it I might have imposed had I bought up a
storm earlier this year when it seemed like gravy train time. I
don’t have to crank out volume every month just to stay afloat.
Making sales in December is great but its far better to be solvent in
January.

So, your business model works for you and I’m glad, we have
interesting conversations. Mine works for me. Anybody listening
would hopefully apply any points to his/her own business based not on
"It works for so and so" but rather “That will or will not work for
ME because…”

Boy, I just gave myself a pretty good pep talk. I feel better
already!

31

We seem to have veered off the conflict certificate discussion in
this thread and I’m going to continue to do that, in that our
discussions of the economy have led me to some further thoughts. I
realized that in all of my pep talks (haven’t got a clue what else
to call them) I have approached things from the standpoint of a
retailer (and a small one at that). While I, my newly found twin
brother Neil, and a few others on list like Richard Hart, often have
the ability to control our destinies during hard times (adjust
spending, advertising, how we’re marketing, etc.) a lot of you
wholesalers don’t. First of all you can’t control how your buyers run
their operations. Are they economically sound (as Neil points out is
so important)? Do they know how to advertise properly? Do they hire
(or are they themselves) decent salespeople (in boom times anyone can
sell anything—in down times you need more than a clerk who stands
there with their thumb up their nose)? If they don’t know how to
properly market your product, or don’t care (because it’s more
important that they survive–to themselves–than that you do) about
how you’re doing, then what are you to do? I’m not sure there are
easy answers to any of these questions. Personally I’m not sure how
I would approach things now if I were a wholesaler, although starting
up a retail operation would be high on my list–and incidentally I
started out my life wholesaling. Maybe it is a good time to start
something new in the retail world if you’ve always thought it would
be good to try. Starting up a retail operation is never cheap, but
the leverage right now is with the buyers, not the sellers so it
might be a good time to negotiate leases, build out costs, etc.

No matter what the media may report, there is still business out
there and people making money. WalMart just had a 3 billion dollar
profit in their last quarter (not year, quarter)! The oil companies
are raking in massive profits (even with oil prices dropping). I have
a lawyer client in New York. She recently spent more than she had in
years in my shop. Why? Because she handles bankruptcies. Her business
is booming. My older son’s boyfriend is a lawyer in New York City.
He’s working non stop. Why? Because his firm works for AIG, the
insurance company that nearly tanked and with what’s going on they
need more legal advice than ever. Another friend of mine runs a small
(10 people) consulting firm for the health industries (mostly working
with doctor’s groups). She makes more money in a month than I do all
year in normal times. Now her business is booming even more because
they’re all hiring her again to help them cut costs. There are also
opportunities out there because of how many businesses are going
under. Often larger jewelry firms do not have the ability to alter
their business plans quickly and they end up going belly up. This
opens things up for smaller firms that are still left standing. So it
might just be time for some of you to launch a new ship. Something to
ponder at any rate…

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC

32 
Okay I want everyone on Orchid to throw away their computers. Why,
you might ask? Because all of your computers use a material called
tantalum in them (your cell phones do too). Why is that a problem?
Because more people die every year trying to find and mine the
stuff than have ever died from conflict diamonds (and it gets worse
every year because demand keeps rising). Oh. I'm sorry. It's ok to
have a material in your computers and cell phones that kills people
but not your jewelry?

I just spent a few hours studying the war in the Congo. I can’t tell
you how many people die in their mining operations, but it appears
that small independent miners are being robbed by rebels and
probably government soldiers as well of their earnings on a regular
basis. One could say that tantalum is a source of funding for groups
that are responsible for almost four million deaths in the last
decade with an additional twelve hundred dying per day due to a war
that doesn’t seem ready to end.

33 
in down times you need more than a clerk who stands there with
their thumb up their nose)?

Two stores we deal with, two different stories. One store is 4th
generation, smack in the middle of downtown SF on the edge of the
finacial district. One lady is more of a librarian - very quirky and
a little strange. The main salesman is an artist - nice guy… The
newest hire is prone to social-climbing politics and is pretty much
me first. The owner is paranoid with some reason I won’t get into,
and more and more prone to lashing out emotionally at anyone around.
All nice people, but pretty much a motley crew. They are cutting
hours and days lately, and I fear for their future. The other store
is in San Carlos - comparatively the middle of nowhere (older
suburbia). The owner is bright, personable, also 3rd generation and
professional. They just hired a new salesperson, and have more work
than they know what to do with. They’ve been asking us if we can
handle more. All the staff is professional, motivated, and most
importantly they are chosen for their abilities, which means making
sales at the store. You got to roll with the punches, and the
downtown store just doesn’t know how to do that, plus his staff would
fit real well in some dark B movie, but not really a jewelry store.

34

Canadian Diamonds are conflict free.

best
Charles

35 
Canadian Diamonds are conflict free.

I’m not sure, but I think that this thread started because no one is
sure how to verify the provenance.

Bruce Holmgrain
JACMBJ

36

Charles,

that’s exactly what we thought in Antwerpen (Belgium). If you read
the newspapers it’s a complete different story now (Monstrey World
services, Rosy Blue). It might happen (in the long run) that the
diamant industrie will leave Antwerp since a lot of research is
going on and laws are overwritten. But anyway, this is my
interpretation and can not be taken as a true estatement. Just a
matter of being careful, so don’t shoot me-)

It’s a shame and as far as I’m concerned, I think nobody can be
shure if diamants are conflict free. Diamandmines are blocked to keep
the price up (Russia), controlling organisations are doing what needs
to be done and stil! If you say canadian diamands are conflict free,
then you will have a good reason for doing so. No attack against you
Charles, I’m just pointing to the fact that things are not always
the way they look like.

Best regards
Pedro

37

While I, my newly found twin brother Neil, and a few others on list
like Richard Hart, often have the ability to control our destinies
during hard times (adjust spending, advertising, how we’re
marketing, etc.) a lot of you wholesalers don’t.

Let me respond from the other side of the coin.

I am a wholesaler, supplying manufacturers and designers. We
specialize in natural pearls & tools. We are a small
business which gives us the ability to change with the market. Yes,
the economy is tough, but there is still a lot of money in
circulation; since the stock market first tanked, my phone has not
stopped ringing. Our ‘leap of faith’ this year has been to fully
invest in inventory, all of which we own. As a result, we are fully
stocked and are meeting new customers every day who cannot get what
they need from their old suppliers.

Mary Stachura
www.StachuraWholesale.com