1st Tahiti Pearls International Auction

[jshepherd]

Just received the following invitation today.

1st Tahiti Pearls International Auction

November, 21 & 22, 2007
​

Under the high patronage

Of the Government of French Polynesia

And the Ministry for Perliculture​

The economic interest group Perles de Tahiti invites​

The company: PEARL PARADISE.COM

To take part to the 1st Tahiti Cultured Pearls private sales,

on Nov 22, 2007 at Papeete, Sheraton hotel Tahiti
Viewing from Nov 19 to 21, 2007 at Sheraton hotel Tahiti​

 

[GemGeek]

Clean 'em out!!! Go Jeremy!

 

[Valeria101]

Sounds serious. Is it?


There's an entire library out there about the sight-holder system in the diamond industry. Not much about pearls... Is there anything similar?

 

[Ashley]

**WOW**

Have fun!

 

[john675]

That is so cool! Jeremy, if you need a bilingual English/French translator, just give me a call...
John

 

[nlerner]

Go, go, enjoy and share with us special moments and photos.

Good luck !!!

 

[Manutea]

Jealous, jealous..... I'm sooooooo JEALOUS!

Have a great time!

Manu

 

[jshepherd]

I actually have not decided to attend yet. I am waiting to hear about the lots that are going to be offered.

 

[knotty panda]

... South Sea pearls are in a totally different league when buying and selling wholesale. Because producers sell them at auction, you are not going to find a "special place" to get them cheaper than the other guy. The best possible price will always be right around yearly market value. And to get that good price you have to be willing and able to spend hundreds of thousands of dollars, and have a producer willing to sell to you. ...

Once again, I'm confused. Is this an attempt to regulate how Tahitians are sold in a fashion similar what you described above?

There's an entire library out there about the sight-holder system in the diamond industry. Not much about pearls... Is there anything similar?

What is a sight-holder system? Thanks!

 

[xeresana]

I think I'm in the wrong career. I want to go to Tahiti...on business.

 

[GemGeek]

Once again, I'm confused. Is this an attempt to regulate how Tahitians are sold in a fashion similar what you described above?



What is a sight-holder system? Thanks!

De Beers once had complete control of the diamond market. They sold their diamonds only to companies that held "sights" - I think it's an old dutch word. Basically, as a sight-holder, you are allowed to purchase a lot of diamonds directly from De Beers. You give them a list of what you'd like and De Beers gives you a box of what they have that may or may not completely meet your needs. If you refuse to purchase the lot, you may lose your sight. De Beers used to stockpile diamonds to keep the prices high during times of high production.

Tanzanite One, a tanzanite cartel, is trying to do the same thing with the tanzanite market with mixed success.

De Beers still has sight holders that meet several times a year to purchase diamonds, but due to mines outside their control - Argyle in Australia and Ekati in Canada, for instance, they no longer control diamond prices.

FYI

 

[jshepherd]

Tahitian pearls have always sold at auction. But there are so many producers and different groups of producers that there is no real centralized system of selling. But auctions are very commonplace. I personally prefer direct sale.

The enticement of this auction is the fact that it appears to be completely impromptu, and closely follows a recent auction in HK. There might not be much competition. Then again, the floor prices may be "out to lunch".

I think Stuller is a sight-holder. I have not found their diamond prices really competitive, however.

 

[GemGeek]

Stuller is a sight-holder (and a fun guy). But after having them cut, etc, a fellow has to make some money. The tiny margin on diamonds is one of the factors driving the market to pearls. (see Iridesse)

 

[jshepherd]

A quick update on the auction.

We are actually participating. I am here in LA but I sent Anna to Papeete to bid in person. There are a lot of companies represented, in fact Mikimoto has already won some lots.

We have only won one lot so far but the auction is not half over yet.

 

[Mandy]

Are you up to showing some of the pearls in the lot(s) you've won/hope to win? That would be great, IMO I didn't know Tahitians lots could be purchased via auction...ya learn something every day!

 

[Josh]

Word is out that farmers and buyers alike are satisfied with the results of the auction. We plan to participate in the next one (February/March).

 

[CLICLASP]

Hello,
What is the situation of the market ? Are these Tahiti pearls auctions made in USD?
Since the USD drops at now in front of the Euro, what are the consequences for pearl sales? sold? at what level? in which currency?kept for later?
Thanks

 

[Josh]

Hi Cliclasp, as I said earlier, I wasn't there but I'm pretty sure it was done in our local currency, the French Pacific Franc. As the US dollar drops, we are hurt more by it, especially since it brings up the cost of exportation per gram (200CFP). I just did the conversion on Yahoo and was actually shocked to see that 200 francs is actually USD$2.44! The highest I have ever seen it. So there you go, as the United States loses it's status as a first world country, selling Tahitian pearls will get progressively harder for producers in Tahiti with American buyers. Since our currency is fixed to the Euro and does not fluctuate, I think that not much will change for European buyers.

 

[CLICLASP]

Thanks Josh,
I was not thinking of my buying by of Tahitian producers,
What about the Hong Kong market and Japanese buyers?
are we going to a world tahitian pears crisis ?

thanks again

 

[jshepherd]

The auction was conducted in French Pacific Francs.

I am very happy with the results of the auction. We only won one of the lots on auction but purchased two more afterwards. Most of the lots did not actually sell during the auction but the buyers were able to negotiate with the producers directly for unsold lots. It was Anna's first time and she did really well. We should be well stocked with Tahitians for the holidays, and she was able to secure pearls as large as 15 mm.

The dropping dollar has made the pearl business difficult period. The reason we decided to attend the auction at the last minute was due to the falling US dollar. Even in China we are having to deal with rising prices and sellers who shun the US currency - it is all RMB now. Last week I contacted a large dealer in Hong Kong that has been heavily into Tahitians for years. I was looking for a specific size/grade lot of Tahitians to fill a hole in our inventory. I received a short response that said they were out of the Tahitian business until the dollar regained its value.

Mia is in Zhuji China right now attempting to buy freshwaters (and exotic freshwaters).

I know what you all must be thinking. What kind of a boss would send two employees overseas on Thanksgiving?! Anna to Tahiti and Mia to China... Believe it or not they both volunteered. Now those are some dedicated, amazing employees.

Btw Josh, Anna said you were definitely the nicest producer she met with in Papeete.