| I entered my family jewelry business in 1971 | | | | sometimes shapes. We would either make an |
| having just graduated from Rensselaer Polytechnic | | | | offer on the entire parcel or a cut of the parcel. |
| Institute with an engineering degree. I was the | | | | If we wanted to eliminate one or more diamonds |
| fourth generation to enter the business and began | | | | from the parcel the price would go up. The |
| working with my father and to a lesser degree | | | | qualities of each parcel were usually somewhat |
| with my grandfather who was primarily retired at | | | | similar, within one to two clarity grades. The |
| this time. My grandfather had joined his father | | | | asking price was always too high and we would |
| and brother around 1913 in the business they | | | | have to make offers and sometimes counter |
| founded in 1910. As a boy my biggest | | | | offers in negotiations that could often last a |
| fascination had been my grandfather's story of | | | | couple of days. The brokers would have to keep |
| how the store was held up by the famous | | | | going back to the cutters to show them exactly |
| 'gentlemen' bank robber, Willie Sutton. When I | | | | what we were offering on. There were no cell |
| joined the business in1971 I was attending NYU | | | | phones in those days. We never knew exactly |
| business school in the evenings studying for my | | | | how much we bought until our last day or |
| MBA. I soon began taking courses with the | | | | sometimes not until we got back to New York as |
| Gemological Institute of America and ended up | | | | some of the cutters reconsidered the offers we |
| putting all my efforts into the jewelry business | | | | made. At the time we were buying for five retail |
| which I guess was in my blood. | | | | locations and the savings were substantial. |
| When I started in the business my father was | | | | By the 90's things had changed in the diamond |
| doing almost all of his diamond buying from just | | | | industry. Although the GIA [Gemological Institute |
| two or three diamond manufacturers. It was | | | | of America] had begun issuing diamond grading |
| very simple. We bought only white stones, a | | | | certificates as early as 1955 they did not catch on |
| color that today would be around a G to H color. | | | | as a popular marketing tool until the late 80's. |
| We bought flawless, VS and SI clarity and | | | | At this time we stopped our buying trips |
| ordered them in the various sizes as our | | | | overseas and concentrated more on finding the |
| inventory required. In those days when we sold | | | | best values in GIA certified diamonds from U.S. |
| or appraised a diamond it would be referred to as | | | | cutters and brokers that we could. We were |
| fine white, white, light top silver, silver cape and | | | | also doing more buying from the public and able |
| cape. Today's corresponding GIA color grades | | | | to buy at a discount to what the diamond cutters |
| would have been D to F, G to H, I to J, K to L | | | | were charging. Also, a New York diamond |
| and M to P. At that time diamonds were not | | | | dealer by the name of Martin Rappaport began |
| sold with any sort of certification, only the | | | | printing a weekly price list of diamonds which |
| jewelers appraisal. The purchaser had to rely on | | | | served as a general guide to the diamond industry |
| the integrity of the store selling the diamond or | | | | for diamond prices worldwide. Profit margins |
| else bring it for an appraisal and hope the | | | | shrank yearly for both diamond cutters and |
| appraiser both knew what he was doing and was | | | | retailers as diamonds were sold more and more |
| honest. It was a common practice in those days | | | | as a commodity rather than an object of beauty |
| that many sellers of diamonds, especially those in | | | | and romance |
| the diamond districts, would tell their customers | | | | Today, although Since1910 operates out of a retail |
| where to go for an appraisal and the appraiser | | | | location we also sell a large dollar value of |
| would get a kickback from the seller. I once got | | | | diamonds to other diamond cutters and dealers |
| a call from an appraiser on 47th St. in New | | | | across the country. With the Internet we can |
| York, who I did not know, telling me that | | | | market our diamonds worldwide through industry |
| someone was in his office with a diamond I had | | | | restricted web sites. These same sites also |
| sold. He demanded fifty dollars from me or else | | | | make accessible to us GIA certified diamonds |
| said he would give the diamond a bad appraisal. | | | | from overseas cutters in Europe, the far east |
| Today, fortunately, the GIA certification of | | | | and China, where, when we buy in quantity, it is |
| diamonds has almost entirely eliminated this type | | | | very cost effective for us. |
| of appraiser and practice. | | | | In the early 2000's, we tried selling some of the |
| One of the firms we purchased our diamonds | | | | branded diamond lines after going to diamond |
| from in the 60's and early 70's was Harry | | | | seminars and conferences where they were being |
| Winston who had a large wholesale loose diamond | | | | marketed as the solution to the shrinking profit |
| division at the time. Our sales rep from Harry | | | | margins jewelers were now making on |
| Winston, a gentleman by the name of Murray | | | | diamonds. The premise was that if you had a |
| Stamper, was a good friend of my father. | | | | branded diamond such as Hearts On Fire or one |
| Around the time I entered the business Mr | | | | of the many others, had the exclusivity of |
| Stamper was to fly to a jewelry show from | | | | carrying it in your marketplace and that no one |
| what is now JFK airport but was found murdered | | | | could discount it, you could make a 100% markup |
| in his car at the airport and his diamonds stolen. | | | | instead of one which could be as low as in the |
| With the loss of this connection with the Harry | | | | single digits. While the customer had the comfort |
| Winston firm my father and I made the decision | | | | of knowing he was getting an excellent product, |
| to start buying our diamonds directly overseas in | | | | such as buying a diamond from Tiffany & |
| the Israeli cutting center of Ramat Gan outside of | | | | Co., the problem was that the price could be up |
| Tel Aviv. Almost all of the buying of better | | | | to double what we knew we could sell an identical |
| diamonds at the time was done either there or in | | | | unbranded diamond. Although sales were okay |
| Antwerp. India was also a major cutting center | | | | for these product we could not in good conscious |
| at the time but known for lesser quality and | | | | continue to sell them. Instead we took the time |
| smaller diamonds. | | | | to educate our customer to the fact that similar |
| The diamond exchange in Ramat Gan at the time | | | | quality was available at substantial savings. |
| consisted of two high security connected buildings. | | | | Now with my son in the business as the fifth |
| We worked with a diamond broker to whom | | | | generation and a graduate gemologist, we have |
| we paid a 2% commission to handle our | | | | added a new dimension with the creation of On |
| transactions. We would work both in his office in | | | | it, a consumer can search our entire diamond |
| the exchange or on the top floor where, bathed | | | | inventory and create your own engagement ring |
| in natural north light, sat rows of long tables | | | | using our selection of designers such as Tacori, |
| where the buyers would sit and the brokers | | | | Scott Kay, Martin Flyer, Precision Set, Henri Daussi |
| representing the many diamond cutters would | | | | and many others. It offers our customer the |
| circulate and try to negotiate sales. Diamond | | | | best of both worlds added with the confidence of |
| parcels typically consisted of many carats of | | | | dealing with a family company in business since |
| diamonds in various assortments of sizes and | | | | 1910. |