Ramble On Ron

Diamonds, Music and other Facets of Life

Dealing in Recycled Diamonds

Posted on | March 31, 2012 | 1 Comment

I was having an IM conversation with the editor of IDEX, one of the world’s leading diamond publications, and he said something that struck me. I mentioned how I was trying to buy as much as I can (from the public of course). His response, “the $1 billion mine”.

So true. That’s what we do at Samuelson’s. We buy diamonds from the public and make them our own. Recutting, certifying, sorting, matching, making new jewelry – it’s what gives us the edge price wise against the competition.

Going back to diamond mining, there are two major players that want out of the diamond business. BHP Billiton has left the diamond business. Now, Rio Tinto, another huge player, wants out. The reason, according to JCK Magazine, is:

Rio and BHP make a lot more money with core items like iron ore and copper; compared to those products, diamonds are a small, limited, far less profitable business. (According to one estimate, Rio’s diamond division accounts for less than 2 percent of its profits.) Moreover, extending the life of existing diamond production requires a lot of cash. Argyle’s expansion cost some $2.1 billion, and was one reason Rio’s diamond division recorded a loss last year. And if you have billions to invest, would you rather put it in something that generates good profits—or something that generates really good profits, and has far greater potential? In a way, both Rio and BHP can be said to have “outgrown” the diamond business.

The big puzzle that we are determined to solve is how to further tap the biggest mine on Earth…YOU! The truth is that there’s more than a $1 billion in diamonds out there – it’s billionS – literally. And the best part is that once they’re RECYCLED, (everyone loves to hear that PC word today) there’s no conflict. Well maybe a broken relationship, but that can be a good thing. 🙂

So what is the consumer getting in the end? A nice, clean, environmentally safe and non-conflict diamond. Do you know what else it is? Less expensive! We don’t have to go to the mines, we have our own!

So GO GREEN and buy from Samuelson’s!