Advice on paying tax when sending and selling pearls
- Thread starter Chris Teo
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jshepherd
Pearl Paradise
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Hi Chris,
Melo is a collector's piece. Unless you are a natural pearl dealer/expert that specializes in that sort of thing, it isn't for you. A single (genuine) pearl could easily cost you more than $100,000, and selling it is extremely difficult even if you have a client base of collectors that can afford it and know you. You don't. I don't. I've been doing this for more than 15 years and I wouldn't touch them.
You don't buy akoya or freshwater from a farm. You buy from a processor. That is why you would have no competitive advantage even if you did find a farm. Farms don't process the pearls unless they have a pearl factory, like in the case of Spica. Spica does farm in Vietnam, but their processing factory is in Japan.
You would only buy loose Tahitians and South Sea directly from a farm on a commercial scale and only if you had the ability (skill and equipment) to grade, drill and match, and you would have to buy by large mixed parcel or you would likely be paying more than you would purchasing from a processor in Japan. With farmers you buy it all (or most) or you pay double/triple+, in my experience. Making strands isn't easy either. If interested in seeing what goes into it, read this.
By sight. Anyone with experience and good eyesight can tell the difference from 20 yards. When I visited Vietnam, I saw Chinese freshwater everywhere. Every last vendor swore to me they were Vietnamese pearls. NONE of them were. They look very different.
Melo is a collector's piece. Unless you are a natural pearl dealer/expert that specializes in that sort of thing, it isn't for you. A single (genuine) pearl could easily cost you more than $100,000, and selling it is extremely difficult even if you have a client base of collectors that can afford it and know you. You don't. I don't. I've been doing this for more than 15 years and I wouldn't touch them.
You don't buy akoya or freshwater from a farm. You buy from a processor. That is why you would have no competitive advantage even if you did find a farm. Farms don't process the pearls unless they have a pearl factory, like in the case of Spica. Spica does farm in Vietnam, but their processing factory is in Japan.
You would only buy loose Tahitians and South Sea directly from a farm on a commercial scale and only if you had the ability (skill and equipment) to grade, drill and match, and you would have to buy by large mixed parcel or you would likely be paying more than you would purchasing from a processor in Japan. With farmers you buy it all (or most) or you pay double/triple+, in my experience. Making strands isn't easy either. If interested in seeing what goes into it, read this.
By sight. Anyone with experience and good eyesight can tell the difference from 20 yards. When I visited Vietnam, I saw Chinese freshwater everywhere. Every last vendor swore to me they were Vietnamese pearls. NONE of them were. They look very different.
JerseyPearl
Well-known member
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Excuse the butting in here, but I just had to say how informative your blog is! I have been enjoying reading the articles these past few evenings (with pearls on and a glass of wine of course!)
jshepherd
Pearl Paradise
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Thanks JerseyPearl! I'm glad you've been enjoying it!
I have a quick story about a vendor experience in Vietnam. We took a cruise around Halong Bay and a persistent vendor on the boat tried and tried to convince us that her pearls were genuine and from Vietnam. She had photos of a real pearl farm. She had the lighter to prove they were real, and she had a big bag filled with commercial-grade-and-lower Chinese freshwater pearls.
I finally gave her my business card and explained to hear that pearls were what I did for a living and I knew exactly what she was selling. She never verbally admitted the pearls weren't what she claimed, but did finally (and sheepishly) ask what the pearls would cost in China. She said she wanted to know how much her boss was making.
I have a quick story about a vendor experience in Vietnam. We took a cruise around Halong Bay and a persistent vendor on the boat tried and tried to convince us that her pearls were genuine and from Vietnam. She had photos of a real pearl farm. She had the lighter to prove they were real, and she had a big bag filled with commercial-grade-and-lower Chinese freshwater pearls.
I finally gave her my business card and explained to hear that pearls were what I did for a living and I knew exactly what she was selling. She never verbally admitted the pearls weren't what she claimed, but did finally (and sheepishly) ask what the pearls would cost in China. She said she wanted to know how much her boss was making.
pearlescence
purveyor of pearls UK/EU
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Even if you buy from farms you won't get pearls to match into strands and you will have to match, drill, polish, grade, and temp string them yourself.....
You need to be able to tell the difference between freshwater and akoya at a glance before dealing with any new seller.
Really, I wouldn't do it. I've been in the business 12 years and I wouldn't.
You need to be able to tell the difference between freshwater and akoya at a glance before dealing with any new seller.
Really, I wouldn't do it. I've been in the business 12 years and I wouldn't.
It's an incredibly interesting topic for me too, Jerseypearl.
Well you have successfully warned me away from Melo pearls. That's one dream that is going firmly on the backburner. If anybody didn't know though the snails are grown in C?t B? port in Vietnam.
I've got to admit that the news about factories is new to me. Is it ok for me to ask the names of some good pearl factories to research? and thank you to the link to that blog Jeremy i loved reading it and it looks like a great way to spend a week. That's an interesting story about your time in Halong Bay too. The poor lady has to go out trying to trick people while her boss makes all the money!
My biggest problem is my huge lack of experience. I can tell South Seas apart easily enough (i hope!) but i'm not confident about Freshwaters and Akoyas. I've seen enough Freshwaters to last a life time...but Akoyas i haven't seen too many of. I would love to know the best ways to tell them apart; but i know the answer already i think. That would be to just look at lots of them, side by side if possible. Have i got it right?
Well you have successfully warned me away from Melo pearls. That's one dream that is going firmly on the backburner. If anybody didn't know though the snails are grown in C?t B? port in Vietnam.
I've got to admit that the news about factories is new to me. Is it ok for me to ask the names of some good pearl factories to research? and thank you to the link to that blog Jeremy i loved reading it and it looks like a great way to spend a week. That's an interesting story about your time in Halong Bay too. The poor lady has to go out trying to trick people while her boss makes all the money!
My biggest problem is my huge lack of experience. I can tell South Seas apart easily enough (i hope!) but i'm not confident about Freshwaters and Akoyas. I've seen enough Freshwaters to last a life time...but Akoyas i haven't seen too many of. I would love to know the best ways to tell them apart; but i know the answer already i think. That would be to just look at lots of them, side by side if possible. Have i got it right?
jshepherd
Pearl Paradise
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The pearl factories vary mostly by type of pearl. There are dozens of them in Kobe, but really the best way to see/meet them is to go to a jewelry show in Hong Kong. There you will have hundreds of factories from Hong Kong and China all in one place. Spend one day at a show and you'll be able to spot the difference between akoya and freshwater in the blink of an eye in Vietnam.
Thank you for those links Jeremy I've had a good look through them. I saw the price tag on one pearl and almost fell down. Everybody's advice here has really changed my perspective and my plan - so thank you, i got much more than i expected when i joined in this forum.
I never really thought about going to a jewelry show to start building my inventory. Are they the best places to go? Can someone really make a profit by buying pearls that way?
I never really thought about going to a jewelry show to start building my inventory. Are they the best places to go? Can someone really make a profit by buying pearls that way?
jshepherd
Pearl Paradise
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I think it's the only way you would be able to. All those vendors you see in Vietnam either go to the shows or buy from someone who does. If you don't really know what you're doing yet on the buying side, it's the only way. When all the processors are competing for the same business side-by-side, you have a lot less to worry about when it comes unscrupulous vendors. You mentioned one vendor already claiming their freshwater pearls came from Ph? Quốc Island. I am sure you know that is not true. The stories you will hear are endless. At the show, vendors are not dealing with gullible tourists. It's professional.
