Crisis in Paradise; Black Pearl Prices in Tailspin

[Richard W. Wise]

Had an interesting conversation with Josh Humbert, Josh is the proprietor of the Kamoka Pearl Farm in the Tuamotu Islands www.kamokapearls.com , a far-flung windswept archipelago about 300 miles north of the capital island of Tahiti.
Josh’s farm is located on the atoll of Ahe located 350 miles north east of Tahiti in the Tuamotu Islands. Unlike Tahiti, which is a volcanic island, the Tuamotus are true atolls, flat ribbons of coral surrounding a large center lagoon. Conditions in this far off island group are perfect for the culturing of the Pinctada Margaritifera, the parent mollusk of the black pearl.
[/SIZE] Read On GemWise blog: www.gemwiseblogspotcom.blogspot.com

 

[Mikeyy]

Is 20% a tailspin? Or a correction? Whats your take?

 

[KAC]

care to explain more in this thread?

 

[knotty panda]

More, please. Answer my dumb questions before I ask them.

 

[Mikeyy]

Oh its a commercial

 

[salem]

Well then, I am sure Josh can take advantage of the private offer list we all jumped onto and offer them to use. We wouldn't want those smaller luscious pearls going to waste. Teehee

 

[Mikeyy]

Is the drop in price due to over harvest? Or is the economy to blame? Were prices artificially high due to disposable cash that isn't available today? I guess I was just wondering how you came to this conclusion.

 

[knotty panda]

Is the drop in price due to over harvest? Or is the economy to blame? Were prices artificially high due to disposable cash that isn't available today? I guess I was just wondering how you came to this conclusion.

Thanks for asking my questions, Mikeyy. I know pearl farming in general is full of fluctuations. For the record, my vote is for question number 3. Someone behind the curtain pulls the strings and it ain't the mighty Wiz. Although I disagree with the second part of question 3. I think it's more like pulling the rug out to gobble up the little guy. Very orchestrated. Just my HO.

 

[Valeria101]

Here's another possible story: with the better freshwater, the vast, vast majority of pearls sol are now in a much lower price bracket then Tahitians aspired to before that price slip or this... or the next... Could it be that the entire perception of cultured pearls as jewelry is depreciating as a result?

And then, there's the concentration, competition, coordination or lack thereof and what not in the making of black pearl themselves. Whether the blind short-term adaptation to the demand for lower quality-high volume-lower price, smells like the sign that the Govt. led coordination of black's production is losing ground... to more realistic factors. (very silly of me to venture an idea - just curious here how wrong I am, LOL!).

In other words, black pearls better start growing in Chinese freshwater mussels, or else...

 

[Valeria101]

Oh its a commercial

Good one

 

[Slraep]

Oh its a commercial

Very good one.

Slraep

 

[Ashley]

Lol- In addition, due to fluctuating environmental factors, larger pearls are indeed getting harder to attain, naturally price increases are following a smaller supply...

 

[knotty panda]

Here's another possible story: with the better freshwater, the vast, vast majority of pearls sol are now in a much lower price bracket then Tahitians aspired to before that price slip or this... or the next... Could it be that the entire perception of cultured pearls as jewelry is depreciating as a result?

And then, there's the concentration, competition, coordination or lack thereof and what not in the making of black pearl themselves. Whether the blind short-term adaptation to the demand for lower quality-high volume-lower price, smells like the sign that the Govt. led coordination of black's production is losing ground... to more realistic factors. (very silly of me to venture an idea - just curious here how wrong I am, LOL!).

In other words, black pearls better start growing in Chinese freshwater mussels, or else...

I think John Belushi said it best, "Nahhhhhhh!"

Let me be plainer, smells like bribes in them there government coordinations.

 

[Heidi]

Lol- In addition, due to fluctuating environmental factors, larger pearls are indeed getting harder to attain, naturally price increases are following a smaller supply...

This is a bit of a tangent and may be better in another thread. If so, please alert me.

*edit* Is the apparent difference in availability due to externally applied controls (and how would we really know other than pestering Josh for his detailed experience since there's no DeBeers)? I have a technical question that may not even be answerable but...is the relatively lower supply of the larger pearls due to a turnover in the generation/s of oysters? Like is there a notably higher percentage of first generation grafts? Or is there some other fluctuation in the population or an environmental phenomenon that could account for (some of) it?

 

[knotty panda]

Good question. If Josh is too busy to pop his pearly head in here, which sometimes occurs, feel free to e-mail him or whatever is necessary to get his attention. He will appreciate your interest. In my line of thought, government interference, they would have to be targeting a certain size to reject.

 

[Heidi]

Good idea - I will zip an email off to Josh asking him to chime in on this when he can. It's a topic of great import I think.

 

[knotty panda]

*edit* Is the apparent difference in availability due to externally applied controls (and how would we really know other than pestering Josh for his detailed experience since there's no DeBeers)?

Re: your edit. I believe the externally applied controls, the government, who suposedly monitors the nacre depth before releasing the pearls, is for sale to the highest bidder.

I have personally seen Tahitians with beads showing through in high-end retail stores here in the states. How is that possible if the government supposedly has strict controls on their export?

The answer is, it isn't possible.

So, what is possible? The rad tech looked the other way when someone's (the Wiz's) harvest was inspected, or the inspection was never done and the paperwork is up for sale. The little guy is forced to adhere to the government regulations while the Wiz gets breaks which, down the road, allow him to squeeze the little guy. It's a ploy that's been used forever.

Seeing beads in Tahitians wasn't a fluke. I guarantee I could go into that very same retailer and see them again tomorrow. I even asked how this could happen. I was told, "that's why they aren't $5,000."

The little guy is caught in the squeeze between playing by the rules and running up against those who don't have to play by the rules. They are forced out leaving a sole survivor.

 

[Nerida]

All of which shows that the small farmer needs to be responsible for his own marketing, don't you think? Relying on an umbrella body to do your branding for you is open for this type of market manipulation. "Government regulations" regarding nacre depth etc count for nix when you start seeing beads 'cos someone got lazy/greedy/whatever and that really pulls down every farm and every pearl marketed under the "tahitian" name.

 

[Slraep]

The answer is, it isn't possible.

The black pearls you have been seeing are possibly not from French Polynesia.

slraep

 

[Pearlgully]

The black pearls you have been seeing are possibly not from French Polynesia.

slraep

I thought that too. Also, I remembered that I'd read somewhere, (may have been on this forum but not sure now) that some Tahitians farmers might be illegally selling the pearls that didn't pass inspection to Japan.


Gail