Bottom line - what yield do you get for the parcel, can you get
20% yield from 40 -50 % (more or less) of the parcel stones? This
would give you about 10 % yield overall. Anyway, thanks for the
Hello again Blaine It has been my experience that when buying a
parcel of opal, or any other gem rough, you should look for the one
or two stones that will “pay for the parcel”. In other words, a
parcel purchase will leave you with a lot of Junk and a few good
stones. This is quite a balancing act. I am of lately, beginning
to think that paying the “Pick Price” for the top stones is a better
business deal than buying a large parcel of stones. Here, you are
able to estimate return quite easily and not have the problem on
dumping the rest of the parcel when you are done. It takes some of
the risk away but not all. It also takes away some of the potential
rewards. Just remember, the safer the investment, the less chance
for high returns, and while a high risk investment MIGHT give great
returns, the fact that it is high risk indicates that it won’t.
Your challenge is to determine if it is a sure thing or a high risk.
Only experience will help you here, and that experience can
sometimes be costly. Just remember to look at the bad experience as
a learning experience. And only learn that lesson once.
On cutting returns, expect 20% to 30% return on a single piece of
rough. If you get above the 25% return, you are in the gravy. This
goes for both cabs and faceted stones. On a parcel, if you can get
20% return on the volume with 10 % of that being good quality, you
are doing good, if you bought correctly. Just remember that price
doesn’t necessarily equate to value.
By the way, those of you who are not familiar with Blain, he posted
a very unique opal some time back and then, the GIA, Gems and
Gemology, did a report on it. If you haven’t seen it, get a copy
and look at it. It is one of the most unique opals I have seen.
Unique and beautiful.