Posted on | April 25, 2015 | No Comments
After reading an article in New York Magazine titled “The Secret Slang of the Diamond Diamond District,” I thought that this would be a good opportunity to write a blog post about the most important term in the diamond business, MAZL,(or mazel) and what it means. Also, I wanted to explain that this rule doesn’t seem to apply to retail customers and it should.
From NY Magazine’s article:
The most significant phrase on the street, and perhaps in the global trade, is mazl un brokhe — “good luck and a blessing” — which is commonly abbreviated to “mazl.” It is hard to overstate the power of this oral handshake, which seals million-dollar deals without lawyers, witnesses or contracts. In “making mazl,” diamantaires stake their honor (and that of their family), and the term garners near-universal respect.
So, I went into the archives of Ramble On Ron and discovered a draft from August 2011. It says everything I want to express. This remains unchanged from 2011 – please read it below:
AUGUST 11, 2011
There are a lot of quirky, old school practices in the diamond business, but the one that I use on regular basis is commonly referred to as a “mazl”. Mazel Tov in Hebrew (or Yiddish) means “Good luck” or “Congratulations” that is often said on a happy occasion. However, that word, MAZL (pronounced MAZAL) and a handshake in the diamond business means that the deal is done.
Here’s an example. I make a sale on a diamond with another dealer/member of the trade. Let’s say he wants to buy a diamond from me for $5,000. I agree to the price and we make a mazl. That means that I can’t go back on my decision and neither can he. So even if I am still holding the stone and another dealer or retail customer offers more, I can’t sell it to someone else. And in the buyer’s case, if he changes his mind or decides that he doesn’t need it the next day – it’s too late. It’s a DONE DEAL.
Some customers definitely don’t understand this. It’s often referred to as “buyer’s remorse” but sometimes I see it the other way around – like “seller’s remorse”. I take a risk when I buy. What if gold or silver goes down? What if the diamond market collapses? Or if the diamond is chipped under a prong, or not the color or carat weight that I thought it was? In any of these cases, I took the risk!
Let’s take the flip side. If gold goes down, should I call all of my customers and ask them to write me a check for the money I lost from when it was bought? If a diamond comes back from the lab at a different grade than I thought, can I go back on the deal? The answer is no, I wouldn’t do that – and customers shouldn’t either. Whether you are in my business or not, when you make a deal and shake hands, it’s done. To go back on the deal, ask for a price increase or change the terms of the deal, takes a lot of a CHUTZPAH!
Posted on | December 22, 2014 | No Comments
Each year I give a Diamond Market Report where I explain what’s happening in the diamond world and where I think market trends and prices will be. As I read over my report for 2013 it seems that 2014 was a very similar year with all trends continuing on the same path. Colored and larger diamonds are strong, average diamonds are moving, and small diamonds (melee) are relatively weak. CLICK HERE TO READ MY 2013 DIAMOND MARKET REPORT.
So this year, I decided to give a report on the state of the JEWELRY industry. Not necessarily on fashion – like what’s hot and whats not, but more on what business decisions need to be made for jewelers and diamond dealers. This year was a pretty difficult year, and 2015 will be just as challenging for jewelers on the retail and wholesale level.
What’s changed in the past 10 years? Why can’t the average jeweler compete these days?
Yes the net has taken the jewelry industry for a big spin. It took a little while, but retailers and now wholesalers are having a hell of a time figuring out how to add value. First, it was “you can’t buy a diamond online” – it worked a little. Now, it just doesn’t fly as well. Sure people want to touch and feel their jewelry, but a 25-30 year old guy who can get a good value in one click and return it if it’s not right? That’s a hard one to compete with in 2014. So what’s the key? RELATIONSHIPS. You can’t get that at Blue Nile. You’re just a number and then you go into a marketing funnel at that place. So jewelers have to provide some value beyond a good price, and it can be done. Samuelson’s Diamonds is coming out with a new website in the first quarter of 2015 that will really tap into what local buyers are looking for.
CASH FLOW AND INVENTORY LEVELS
This is an especially tough one for jewelers and maybe even more so for diamond wholesalers. What do you do with all of the goods you bought that are sitting? What does a wholesaler do with a large amount of diamonds that a bank won’t lend them money on? The problem is that banks don’t understand what jewelry is worth, so they can’t lend aggressively on goods. I believe this problem can be solved, but I will say that TURN is going to be a key to survival this year. Don’t stock items you can’t sell.
METALS AND COMMODITY PRICES
Gold and silver have taken a big hit in the past couple years. In April 2011 gold hit a high of $1923 per ounce. Silver hit almost $50 per ounce. Now they are at around $1180 and $15.60 respectively. That’s a huge loss. How did this affect jewelers? For that 2008-2012 run, there were a lot of jewelers who survived on gold buying. Remember CASH4GOLD and all of the other companies? How about gold parties? Well, they are all gone or very small now, and so are the sellers. So the easy money just isn’t there for a single jewelry store. Now, it’s back to the basics and the basics have really changed!
I think 2015 will be the year to BUY. Because of what I listed above, coupled with fear, the deals are there. For a consumer and for a diamond dealer (like me). It may even be a great time to buy metals.
I think Warren Buffet sums it up best:
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
It’s gonna be a good year to buy…
Posted on | August 30, 2014 | No Comments
Not a lot out of Ramble On Ron lately but a lot of exciting developments for Samuelson’s Buyers in the fall. For now, check out a smokin’ US Blues from Jerry and the boys (Bobby and his short shorts) at Rich Stadium 7/4/89.
Posted on | May 27, 2014 | No Comments
We had our Third Feinfest on April 5, 2014 at the 8×10 in Baltimore. This was our first fundraiser in years and it went extremely well. We raised over $10,000 for The Foundation and a great time was had by all. Check out Cris Jacobs playing an extra funky version of “Sneakin Sally Through The Alley”. Enjoy!
Posted on | April 1, 2014 | No Comments
The O’s had a great win again the world champion Red Sox yesterday and Samuelson’s Diamonds is giving away tickets! Check out this great promotion we’re doing and enter to win 4 tickets to the O’s game on June 28th! It’s our brO’s ticket giveaway!
Click below to enter:
Posted on | December 12, 2013 | No Comments
A recent article in National Jeweler magazine, “Blue Nile Now Displaying It’s Rings In A Store,” discusses how Blue Nile, the biggest and baddest online diamond seller, is now showcasing their rings at Nordstrom in Seattle, where both companies are headquartered. I’m sure Blue Nile wants to get their name out a little more and what better place than a luxury department store like Nordstrom? What’s even more interesting is that you can’t actually buy Blue Nile rings at Nordstrom, but you can look, ask questions and order online. So they are obviously looking to give their brand more of a human interaction. I’ve always thought that Blue Nile could open it’s own flagship store in Seattle or even on Madison Ave if they wanted. The real question is does this add to the customer experience, or completely turn it upside down? It’s one of those problems that even small businesses deal with – that you can’t be everything to everyone. If you’re an online seller, then stick to that. If you’re a brick and mortar retailer, then know that’s your game. We’ve seen very few traditional retailers discover a high volume e-tail model – not impossible, but very difficult. Why? Because it’s not what they do!
Another company that is giving retail a shot is custom online jeweler Gemvara. They have raised over $50 million in funding since they started in 2006. Their online jewelry building technology is very slick and they seem to have their act together from customer service to fulfillment. They opened a pop-up store in a trendy Boston neighborhood with the tag line “Do You Dream in Color?” Then you can look at gemstones and create your ring on iPads and computers just like you would online. This idea may be better than Blue Nile’s for two reasons. One is that it’s their own spot – not a space housed in a department store. Two is that the idea of a retail store integrated with technology and fun is the way of the future.
Just like with Samuelson’s, it’s all about trial and error. It’s also about planning and a thought process. I’m sure these larger companies have put a lot of time and resources into these decisions. I think the only fail here may be a confused customer. It will be very interesting to see where this goes…
Posted on | November 28, 2013 | 1 Comment
Every year I give a report on the diamond market, what people in the industry are thinking, and even worldwide sentiment about the diamond industry. This year, it was very difficult to get a really accurate gauge into the market, being that it was so unpredictable. Here are some trends in 2013 that I am seeing.
Are you kidding me? Is this train ever going to stop? This category is by far the strongest in the diamond trade. Several colored diamonds set new records at auction including the 59.60 carat “Pink Star” which went for a whopping $83 million, and the 14.82 carat Fancy Vivid Orange diamond that realized a price of $36 million, or $2.4 million per carat, another world record. These are just two extreme examples, but even the market on small pinks and blues is out of sight.
Is bigger always better? In this market, the answer is YES! Most diamond dealers go after larger diamonds (3 carats and over) more aggressively than the run of the mill diamonds. I think that most people like having these diamonds in their inventory because they are harder to find, and (of course) they are really fun to look at! Actually, the truth is that smaller very high quality diamonds are much harder to sell which brings me to my next category.
High Clarity Diamonds:
These diamonds continue to be weak. IF and VVS stones, unless they are very large/rare, are trading a large discounts. Traditionally, the Asian market would eat these up, but the US market does not want these diamonds. The simple way to put it is that when you have a VVS diamond, it makes the price higher. Most consumers would rather sacrifice a little on quality to get a bigger diamond. And let’s be honest, who really needs a diamond with perfect clarity? A VS or an SI (or a really nice I1) clarity diamond can still look fantastic to the eye.
Average Size/Quality Diamonds:
These diamonds are very common and therefore, they bring average prices. Good quality SI salable diamonds are always around, so no one is getting very excited about them. However, there are always customers for them, and in our world they are flowing pretty nicely. We are making some nice rings, studs, and jewelry from diamonds like these so we are always buying. In fact, we have seen a very nice influx of 2 carat diamonds, and they always do well.
Very small diamonds, often referred to as melee, are diamonds that go from .01 carats (tiny tiny) to about .20 (one fifth) carats. We sell a lot of these goods that are removed from the scrap gold that we buy. Recently, the prices have been weak compared to 2012, partly because of the weakness of the Indian rupee. The Indian buyers used to love these diamonds, but are not consuming them like they used to. In my world of second hand (or recycled) diamonds, it seems like the more we can separate these diamonds, they higher price per carat we can achieve. In other words, if we sort diamonds by size, quality and shape into matched parcels, we will get more. However, this process is very time consuming and tedious, so we sort them up to a certain point. Then our buyer takes it a step further and it goes down the line this way.
Diamonds are steady, definitely steadier than metals! Gold and silver have taken a pretty bad beating over the last 2 years and diamonds have been very reliable. So we are heavy into diamonds and will continue to move forward towards our diamond buying and selling goals. Our philosophy is to buy diamonds strong, develop our customer base, and, more importantly, nurture our current relationships and make new ones so we are poised for growth.
Happy Thanksgiving – we are thankful for our friends, family, health and…DIAMONDS!
Posted on | November 2, 2013 | No Comments
So I traveled again to see Phish. This time to Atlantic City for the anticipated Halloween run. I saw one of the best shows ever in Hampton that reviewed in my last post, so I was really pumped for Halloween. Traditionally, Phish plays a very special Halloween show which includes two sets of Phish and a surprise cover album in the middle. Such iconic albums have been played in the past like Waiting for Columbus, Exile on Main Street, Dark Side of the Moon, The White Album, and more. So we were really excited to see what the boys had up their sleeves for this show. Turned out they played…their own new album, Wingsuit! Was there a horn section? How about backup singers? No! Just the Abe Vigota dancers and a 92 year old Godfather character waving to the crowd. Let’s be honest, this was a real bummer. I’ve been reading a lot of blog posts, like Mr. Minor’s Phish Thoughts, where he exclaims:
The decision to play Wingsuit was incredibly brave, daring and risky—characteristics that have defined the band throughout their career, and traits for which we adore them. And for that alone, they must be applauded. But god damn, these songs were amazing.
Really? Just because you are mentioned in a song, doesn’t mean you have to love everything they do. Thank you Mr. Minor…for being such a wuss. This show was a HUGE disappointment and let down. I will admit that part of it was definitely that the expectation was so high.
It was painful, and I will venture to say it was selfish and unfair for Phish to do this to their fans. They need to know that not everyone at the show paid the $65 ticket price. A lot of folks paid $300 plus to see the most anticipated show of the year. Phish sets the ticket prices for face value, Stubhub sets the market price which was WAY higher for this show. What we got were some really new, unpolished songs. Trey even “apologized” afterwards by thanking everyone for listening. Here’s a better idea – scatter a few new songs in your fall tour. Don’t play them all at once! By the time they got to the last set, everyone was frankly too tired to get the energy going again. So if they would have had the 1st and 3rd sets only, I may have thought it was a decent show.
Here’s an analogy. You go to see Book of Mormon on Broadway – one of the hottest shows out there. You pay $500 for a seat because you hear that this Saturday night show is the original cast and a five year anniversary performance. When you walk in, the Playbill says “Book of Muslim” a new play by Trey Parker. Then Trey Parker, creator of Book of Mormon and Southpark, comes out and tells the audience that they want to try out a few numbers from the new Book of Muslim to see if you will like it. Then you hear songs like, Where is My Allah Tonight and Osama the Bomba. Forget that people paid $500 a ticket to see the real deal. Anyway, you get my point.
Phish: I love you guys and I thank you for your music. I listen every day. I saw three shows this tour, and I know you can’t play perfect shows all the time. I know you get paid millions of dollars and may not care, but this was not cool. You can do better.
On a positive note (yes there is a positive note here) the show last night, 11/1/13, was awesome and you did redeem yourself so I will be back!
Here’s what a real set list looks like from 11/1/13:
Set 1: Cavern > Runaway Jim, Sand, Halfway to the Moon, Halley’s Comet, Tube, Possum, When the Circus Comes, Sugar Shack, Jesus Just Left Chicago, David Bowie
Set 2: Twist -> Gotta Jibboo > Makisupa Policeman > Light -> Chalk Dust Torture, Meatstick > Boogie On Reggae Woman > The Wedge, Slave to the Traffic Light
Encore: Sneakin’ Sally Through the Alley
Posted on | October 22, 2013 | 1 Comment
Plain and simple, there’s just no band on earth who gets it done like Phish. I see a lot of live music, and the energy, crowd, and flat out jams/guitar ripping at a Phish show is way beyond any other live act. So I headed four hours south to the Hampton Coliseum, AKA The Mothership, to check out the last show of three that Phish played that weekend. All I can say is WOW. This was possibly the best Phish show I’ve ever seen and I’ve seen dozens.
The set list:
Set 1: Julius, Funky Bitch, Back on the Train, Roses Are Free > Sample in a Jar, Ginseng Sullivan, 46 Days, Divided Sky, Bold As Love
Set 2: Paul and Silas > Tweezer> Golden Age> Piper -> Takin’ Care of Business> Also Sprach Zarathustra > Sand > Slave to the Traffic Light
Encore: A Day in the Life > Tweezer Reprise
Check out the details from Jambase by clicking here.
For all you Phish Phans, this is a great one. If you’re a Hendrix fan, the Bold As Love second set closer was unreal. If you’re a Beatles fan, A Day in the Life encore was so fitting and done very well. Hell, if you’re a Bachman Turner Overdrive fan, they busted out a Taking Care of Business in the middle of the second set. The first time for that one.
So what’s next? Halloween for me in 10 days! I’m ready for that one where the boys will play an entire album from another band. The White Album, Exile on Main Street, Waiting for Columbus, what will be next? Whatever it is, these guys are Takin’ Care of Business, that’s for sure!
Posted on | July 26, 2013 | 2 Comments
I can’t believe it has taken me so long to talk about my Howard Stern experience, but here goes. We were staying at The Four Seasons at Mandalay Bay for the yearly JCK Jewelry Show. As my wife and I are walking out to the elevator area, I see Howard Stern standing right there waiting for the elevator with Ralph Cirella and a bodyguard. I immediately walk up to him and say, “Howard! I’m a huge fan,” and go to shake his hand. He, of course, gives me a fist pump because of his OCD, which makes sense. So, we get on the elevator and he says to me, “What’s in the backpack?” We were heading to the pool and I had my backpack with me. I said, “Jewelry.” Then he asked if I was there for the jewelry show, when does it end, and we had a nice conversation on the elevator. As we are riding my wife nudges me and says, “Ask him for a picture.” I say, “I don’t want to bother him.” So as we are getting off the elevator my wife says, in these exact words, “Would it be terrible if we asked you for a picture?” Howard said, “Sorry I have to go to work.” He was in Vegas for America’s Got Talent – which by the way is one of the lamest, sellout things he has ever done. Remember this incident because it plays out again at the end of this story.
So throughout the next few days we saw Howard and Beth again in the elevator, (he was staying a few doors down from us) Beth at the pool, Ralph in the gym – I even tweeted Ralph thanks for chatting with us and he replied.
— RALPH CIRELLA (@MYGEEKTIME) June 7, 2013
Granted, Ralph is the guy everyone tools on, but have been a devout listener for 25 years so it was all very cool to me. He was actually a pretty nice guy. Even seeing and talking to Howard was surreal because I feel like I know so much about his life and now I am interacting with him – it was weird.
After I get back from the trip I decided I wasn’t done with Howard yet. So I call the show and get an answer. I said, “I met Howard in Vegas and wanted to talk about what it’s like for a fan to meet him in person.” HOLD ON. I was in the car on the way to DC and just stayed on hold and listened to the show. Thirty minutes later…“Ron from Baltimore, you’re on the air!”
OK – now this is crazy. I don’t have an audio of the conversation but here’s how it went:
Howard: “Ron from Baltimore, you’re on the air.”
Ron: “Howard, I’ve been listening for 25 years, thanks for taking my call, we just met out in Vegas”
Howard: “Which one were you?”
Ron: “I was in the elevator wearing an Orioles hat.”
Howard: “Oh, the jewelry guy.”
Howard to Robin: “There was a big jewelry show out there. I also saw Adam Levine from…”
Ron: “Maroon Five”
Howard: “Yeah, he was out there”
Ron: “Yes, he played a private concert for the jewelry industry one night”
Howard: “How much do you think they paid him for that?”
Ron: “We were talking about that, maybe $200K?” (if any JCK people are reading this please chime in)
Howard: “At least a million.”
Ron: “I saw Beth at the pool, she looked great, it must be really hard for you to go places because you are such a daunting figure.”
Howard: “Yeah, I tried to go to the pool and some fucking lady was trying to take a picture of me – I could see that she was trying with her phone and I told her to stop taking my fucking picture.”
And he went on a little rant about this and how he hates when people try taking pics of him – then I interrupted:
Ron: “You know my wife asked you for a picture after we got off the elevator.”
This is when the conversation completely turned.
Howard: “Well, I was on the way to work and…”
Ron: “Do you have a policy where you don’t take pictures with fans?”
Howard: “I take plenty of pictures with people, listen Ron, I gotta go.”
Ron: “But you were really cool about it…”
Howard: “Stop interrupting me! CLICK”
That was it. Then he proceeded to insult me after he hung up on me.
Howard: “Ron was only 4 feet tall so a picture would have looked stupid anyway.”
Disclaimer: For those of you who don’t know me, I am 5’9 and my wife is 5’4. Not tall, but average Jewish size. Howard is just an awkwardly sized goon so everyone seems short.
Robin: “I love the way people always ask AFTER you are leaving the elevator”
Howard: “Yeah, we had like 10 minutes on the elevator, he could have just asked me then. I was trying to explain to the guy why I didn’t take the picture. Whatever, then he would have shown it to everyone, and I didn’t look good…”
BLAH BLAH BLAH
So I got hung up on like everyone else. I did have him on the hook for a good 2-3 minutes which is pretty damn good.
Of course, after he hung up on me I went into a stream of regrets. I should have just shut up and hung around for the news, I didn’t have to mention the picture, I could have been his best buddy and gotten invited to his house at The Hamptons – a lot of fantasies and bullshit went through my head about what I could and should have said. Reminded me of the Seinfeld episode “Jerk Store” – if you watch Seinfeld, you’ll know what I’m talking about.
I also got a number of calls from friends who heard it and couldn’t believe it. In fact, two days later, Howard mentioned me AGAIN. He said that a nice couple asked him for a picture and he said no, and then went into the same schtick about how he hates taking pictures.
So…the real question is, should he have taken a picture with a loyal fan? Without people like me he wouldn’t have shit. Did he hang up on me because he was put on the defensive and didn’t want his fans to think he was a dick? Should I call back? I know he’ll remember me. I think he made my wife feel like he did when Paul McCartney dissed him and his daughter at his concert when he asked for an autograph.
What do you think? Is it over and just another good story to tell?
To me, of course it’s never over until he dies and maybe “Ron The Jeweler” will cross paths with Howard again!
keep looking »