Best option to sell colored stones from our 7 stores

Gem Related Discussion
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Good Afternoon!

I was recently hired as a gold buying store manager for a fairly large family owned buisness (7-10) amount of locations. I was brought over from American Jewelery and Loan in Detroit and I am familiar with the process they utilized but it seems as though it was fairly inefficent and cost ineffective.

One potentially signifigant stand still we have been encountering here is the overwhelming amount of stones that are removed prior to refining. Would anyone be able to assist a young manager understand what lessons they have learned in similar processes, and the most efficient pathway they have found for removal,prioritization, identification, resale, etc? I would like to try and get a solution set plan in place prior to engaging the tenured team to discourage any conflict between my old and temas. Hopefully getting a fresh perspective on what seems to be an endless amount of moving parts and logistics, I know this may seem insignifigant but I am a Marine by trade and we are fiends for process documentation!

I would love to be able to create a connection with someone that may be looking for some of the other elements in our buisness, (Rolex AD, Rolex RCPO, Vast estate department, fostering a reciprocal relationship!

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Joseph, welcome to the forum!

An interesting dilemma. Not knowing the ins/outs of your time at AJ&L, I can only provide some insight, as one who has purchased stones from precious metal buying stores.

  1. Some of the stones presented to me were damaged from the aggressive removal techniques employed by the recovery team. (i.e. looked like they were extracted with a hammer and large blunt-tip pliers.) Providing the extraction crew with appropriate tools and training on how to remove the stones, can increase the potential value for re-sale.
  2. A collection tray with compartmentalized areas to keep the stones from rubbing against each other during storage and transportation from the workbench is recommended. I have been witness to stones being thrown into a jumbled mess on a cloth from a cup, like throwing dice for a game of Yahtzee.
  3. A staff gemologist or a service offering gemological identification for the stones might be worthwhile. The time spent separating the good, the bad, and the ugly, can help streamline/prioritize what is worth selling.

Tools, trays, and loose stone containers can be purchased in bulk from several jewelry supply companies like: Rio Grande, Halstead, and Jewelry Supply.

Thank you for your service! -Semper Fi

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That’s a really solid question — and honestly, one a lot of gold-buying operations struggle with. The stone removal side can easily become a bottleneck if there’s no clear process for sorting, identifying, and deciding what’s actually worth keeping.

That’s exactly where The Concierge Gemologist comes in. We run an independent gemological lab that specializes in helping businesses like yours evaluate and organize reclaimed stones from buybacks, scrap, and estate pieces. Our goal is to separate the money-makers from the ones that would cost more to repair or refinish than they could ever bring back in resale.

We can set up recurring services to handle everything from sorting and grading to giving clear recommendations about what’s worth recutting, repurposing, or letting go. Everything we do is based on accurate, non-destructive testing and real-world market data — so you’re always making decisions with confidence.

Our mission has always been to protect the value in your valuables by being the independent, honest voice in a very transactional industry. We’re here to make sure no money gets left on the table — and to simplify a process that can otherwise feel endless.

I’d love to connect and talk about how our teams could support each other. It sounds like there’s a lot of overlap between what you’re trying to streamline and what we already do every day.

— Jake Talve-Goodman, G.G.

The Concierge Gemologist

:telephone_receiver: (314) 270-2173 | :envelope: Jake@StLGems.com

www.STLGEMS.com

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Troy, I really appreciate the insight! I have added your lessons learned to my project management spreadsheet and I will contact the other responder to this post/look into possibly getting one or two of my top tier buyers certified in identification! Semper Fi! Please contact me if there is anything I can do to help you out in the future!

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Jake, I appreciate the introduction to the services you offer and I will be reaching out shortly to connect through my company email!

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GIA certification might help, but realize the cost incurred will be more than expected.

If natural expect cost per stone to start testing at $70+ to more than expected.

If glass $70 is standard price to identify glass.

Best to buy test equipment for self.

Use test device every time.

Testing metal same principles.

Test always.

Then decide validity to move forward to sell, or destroy item. Glass can be crushed and sold to glass blowers.

Actual natural stones hard to come by about 35% of market volume is natural.

35% of stones are lab grown.

30% turns out to be glass but in rare occasions we find rare items.

Be cautious.

Metal testing device $21,000 current price.

A great quality stone tester can cost similar prices.

I acquired 6 ounces of rhodium by mistake thing was silver turned out to be rhodium.

Always test.

No buyers for rhodium.

Too expensive.

Current spot price $8,150 yesterday fluctuates around $8,250 to low of $7,500 last month but going up on average around $500 monthly.

No buyers at this price.

Otherwise would have sold mine.

Rather trade for platinum personally.

No takers for trade either.

I used acid testing platinum and determined rhodium due reaction.

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Good Day.

Following on the lessons/advise from @TroyJ49412 and @Jtalveg, even the stones that would cost too much for repair/refinish are not without value. Damaged stones still have their value in education.

Damaged stones can be used for education in the following ways:

  1. Learning/practicing with how to use gemological tools and gemstone handling techniques: A dropped or lost damaged stone is less of a financial concern than dropping one of value.
  2. Following on 1: Customer education regarding gemstones and the processes for handling said stones, up-to, and including using the broken stones as give-away items to help new customers start their personal collections. (There was a Pawnshop that gave me a number of their loose stones because the owners were getting ready to retire, and they wanted to reward me for helping them bulk-triage their reclaimed stones, specifically their pile of reds.)
  3. Donations (possibly tax deductable) to local public museums/libraries/schools that provide some form of hands-on education similar to COSI (https://cosi.org/).

Alternatively they can be:

  1. Low value stones (doublets/triplets/synthetics/simulants/etc) can be used as scattered decoratives in display cases. Scattered reds around jewellery containing red stones for example.
  2. Replacement stones for costume jewellery. Vintage costume jewellery may not carry scrap value, but can still be sold for some ROI, with a ball-park of $5-$10 per decade of age. (Y2K-2K10 for 5-10 dollars, 1990s for 10-20 dollars, 80s for 15-30, 70s for 20-40, 60s for 25-50.)
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If damaged gems consider teaching Faceting class using damaged gems.

Use materials you have.

Let students Polish damages and see results.

Best students must be patient, unwavering in technique and be able to finish each grind pattern in period without break. Caution required in faceting. Use proper safety equipment such as eye goggles or full face mask. Wish more facet classes occurred for gem clubs.

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Facet classes appear and some attend. I never seem to get invited. Tell others of my interest to learn cutting techniques.

Apparently not wanted in class. Instead will buy own equipment and practice on my own lab grown gems since I know which is which.

Lab grown gems if buying at $100 carat your paying to much.

Open market auctions has better options but might buy natural by mistake.

I paid 2 years ago $20 gem on average but that was 2 years ago.

Today prices are tripled or more above and going far upward.

Never thought lab grown diamonds would fetch so much at auctions.

Do not believe me? Go check out LiveAuctioneers.com

Insane what some are willing to pay and they tell you lab grown. Not worth more than $100 carat multiple gemologists have told me to My face yet auctions going higher.

Driven market demand.

Open market decides value not certified opinions of options.

We prefer natural to Labratory.

We all want natural.

Except we all cannot afford natural.

Most customers can barely afford gas now.

Gems are a luxury.

So unless rich negotiate deals.

Better break even than loosing shirt.

This is my hobby not my career. I research gemoligical options then give data to others for them to make choices.

I share gemologists contacts with others.

I share jeweler information with others.

I am not perfect.

I make mistakes.

I am literally blind.

I want to help others more often than making a sale.

last event any profit made was given in art supplies to a veterans family. He has 3 daughters all young and I want them with as much art supplies as they can use. They also are rock hunters with grandmother. If I can help a veterans family instead of living off sales. Maybe they might become Gemological students or archeological scholars. Not my choice. I hope they continue education forward.

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I have fought for almost 2 decades now to keep my cutting from becoming a business so I understand completely about not wanting the money thing. Lol. I cut and have custom settings made for people who are not able to afford something like that My latest was a heart shaped pendant with the mothers birthstone cut in John Bailey’s heart with a cross in it and the 4 childrens birthstones around the heart shaped setting. It was for the sister of the mother who passed away. And her and her childrens birthstones. They joy on her face was worth way more than any money I could have been given. She was very close to her mother and cared for her in her tiny home until she passed away. It made me happier than it did her I think. Lol. It cost me nothing compared to the joy it brought to her.

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If you are dealing with a large volume of stones, it’s not worth the time to learn and inspect each stone by yourself. The idea that Troy J has provided is the best for high voumes. A staff or even a partime gemmologist is worth paying to separate the good, the bad, and the ugly. Using outside services must be reputable organisations. Removing stones must be ideally done by a jeweler. Cracking or chipping stones during removal is a big loss. If you are a large scale business, investing in jewerly making and stone selling may take sometime to become profitable. However, this is another option.