{"id":227,"date":"2011-10-21T16:55:26","date_gmt":"2011-10-21T16:55:26","guid":{"rendered":"https:\/\/www.shaneco.com\/theloupe\/?p=227"},"modified":"2025-05-30T15:13:16","modified_gmt":"2025-05-30T21:13:16","slug":"why-i-buy-rubies-and-sapphires","status":"publish","type":"post","link":"https:\/\/www.shaneco.com\/theloupe\/shane-co\/tom-shanes-world\/why-i-buy-rubies-and-sapphires\/","title":{"rendered":"Why I Buy Rubies and Sapphires"},"content":{"rendered":"

As our company<\/a> celebrated its 40th<\/sup> anniversary, many of my friends ask me what functions I perform personally, along with my role of Executive Chairman.\u00a0 They marvel at the idea that I buy all of the rubies and sapphires\u2026mandating my going over to Bangkok 7 or 8 times a year for approximately 3 weeks each time.\u00a0 They can neither understand how I can be away from the business that long, or away from my home.\u00a0 They can\u2019t imagine that I can justify spending so much time buying those stones, and why I haven\u2019t hired a person to do that function for us.<\/p>\n

For the first twenty years of our company\u2019s existence, I bought every diamond personally.\u00a0 As the company grew in size, and I was forced to give up most of the \u2018hands-on\u2019 functions, I kept on doing the radio ads, and buying the stones.\u00a0 During that period, buying diamonds changed materially.\u00a0 Grading became both standardized and common.\u00a0 Price lists came into being, and stones were priced and traded based upon those grades. \u00a0What had been an art was turned into a science.\u00a0 That took the fun out of it for me, quite frankly.<\/p>\n

By fun, I don\u2019t mean that I didn\u2019t take it very seriously.\u00a0 But the way I learned the business, there were no grades.\u00a0 Every stone I would buy would be examined by me, and I would offer based upon my knowledge of the wholesale market.\u00a0 The better I knew the market, the market conditions, the situation of the sellers, and all of the intricacies of where there was a surplus of certain goods, a shortage of others, etc., the better I could buy.\u00a0 My skills as a negotiator came into play as well; but the real key competitive advantage that we had was my intimate knowledge of a complicated but disorganized, segmented market.<\/p>\n

Once the diamonds were commoditized, the relative advantage of understanding (or needing to know) the market\u2019s intricacies was minimized. Our buyers today still examine each and every stone, and select the most beautiful within each grade, and negotiate hard to save a few percent\u2026but the atmosphere is completely different.<\/p>\n

Buying rubies and sapphires<\/a>, on the other hand, is even more demanding, in terms of a buyer knowing the product and knowing the market.\u00a0 By comparison, diamonds are much easier to purchase.\u00a0 There are so many more variables with a colored stone.<\/p>\n

With a diamond, \u201ccolor\u201d is a negative attribute.\u00a0 In other words, the best color is no color at all, what we call colorless.\u00a0 Compare this to the color of drinking water.\u00a0 The more color, the less the diamond is worth.\u00a0 But with colored stones, there is no \u2018ideal\u2019 blue, or red, or pink, or yellow, or lavender, or green, etc.\u00a0 And sapphires come in every color of the rainbow.\u00a0 Like buying a pair of jeans, who is to say which shade of blue those pants should be?\u00a0 So it comes down to the personal taste of the buyer\u2026and I love being able to select those shades of color that are what I know our customers will like.\u00a0 Plus, many colors are those that our customers won\u2019t find at any other jewelry store in America.<\/p>\n

Then there is the fact that with diamonds, there is a very consistent, standard cut.\u00a0 Deviations in cut are not nearly as great as with colored stones.\u00a0 I recut most of the sapphires that I buy.\u00a0 We employ several cutters, in our own buying office, that I keep busy all year long.\u00a0 I order the stones I buy to be recut, and work with those cutters to detail my desired results, stone by stone.\u00a0 I see, firsthand, the results of the improvements that I make with the stones.\u00a0 I am, therefore, able to add value for our customers, without increasing the cost of the stones.\u00a0 This is a huge advantage to our company, and it makes me feel good, to know that I am capable of selecting stones that I can enhance by re-cutting or re-polishing.\u00a0 While I would never turn around and sell those stones back on the wholesale market, I know that I could, and at a nice profit.\u00a0 So again, my ego is fed!<\/p>\n

There is a difference between being an employee in a company and being an owner.\u00a0 It is an unfair burden for a company to hire someone to make buying decisions based solely upon their own personal opinion.\u00a0 The employee can never defend his\/her action, should the boss wish to criticize it.\u00a0 And buying colored stones is totally an art.\u00a0 We hear occasionally of someone trying to standardize the rubies and sapphires, like they did with diamonds.\u00a0 In fact, I know that will never happen, because there are just too many different independent variables that come into play.\u00a0 Sure, you can find a date on the web, and people have even more variables!\u00a0 But this is not about matchmaking\u2026it is about buying tens of thousands of stones many times per year, to meet the needs of thousands of customers.\u00a0 And, in most cases, the customers don\u2019t even realize, much less appreciate, the number of choices that are out there.<\/p>\n

Even when professional jewelers come into one of our stores, they are struck in the face by the quality of our rubies and sapphires\u2026which most of them admit they have never seen anywhere in their lives.\u00a0 And of course, that makes the ruby and sapphire buyer feel that it is worth spending half his life in Asia!\u00a0 The fact that I love being in Bangkok makes it even better for me, as I can rationalize my time there easier, when challenged.\u00a0 And today, with the world\u2019s connectivity, most people I work with via phone or email don\u2019t even realize that we are communicating from somewhere outside of America.\u00a0 They don\u2019t need to know either.\u00a0 And that too, is part of the fun for me.<\/p>\n","protected":false},"excerpt":{"rendered":"As our company celebrated its 40th anniversary, many of my friends ask me what functions I perform 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