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To: Bill/WA who wrote (74392)	3/2/2001 3:03:43 AM
From: KeepItSimple	Read Replies (1) \| Respond to of 436258

The entire basis for the high price of diamonds is due to the global monopoly held by DeBeers. Diamonds otherwise are pretty worthless. Several companies are developing techniques to manufacture perfect synthetic diamonds up to 10 kt that can't be distinguished from the real thing even by a gemologist. Debeers bought out an operation at GE in the 80's that pioneered the process- it was on 60 minutes, but now smaller companies are re-creating their work. Some mines in Russia are basically threatening to collapse the world market for diamonds with a flood of supply. Shiny bits of carbon are not that rare. Go for gold. However, I would be interested in buying diamonds wholesale since the typical markup at a retail jewelry store is around 100% at a minimum. >Would diamonds be an equivalent investment to gold or is their attraction >that they're easier to transport?

To: Bill/WA who wrote (74392)	3/2/2001 6:03:14 AM
From: TobagoJack	Read Replies (1) \| Respond to of 436258

Hi Bill/WA, Agree absolutely with KeepItSimple on both diamond and gold. Physical gold is of course a hedge for really bad news. May also want to try some gold mining shares in N.America and S.Africa. Ditto for platinum. I used to buy some loose diamonds at wholesale from a friend in the business, to give to wife as presents - looks pretty, she cannot eat it or spend it, and future daughters may appreciate them. Now I give watches, as they are more fun on day-to-day basis. Chugs, Jay

To: Bill/WA who wrote (74392)	3/2/2001 8:43:29 AM
From: Ilaine	Read Replies (2) \| Respond to of 436258

I'm not an expert on colored gems but I've read quite a bit about them because I make jewelry as a hobby. The markups every step along the way are unbelievable. A lot of the trade is Asian - colored stones are cut in Thailand, and ethnic Chinese buy and sell them wholesale - Indians do, too, but usually lesser quality. If you can buy at a good price directly from the cutter, then you can make money selling. People in the jewelry business buy wholesale from the importer, or if they are big enough or sophisticated enough and have a good relationship with someone they can trust, from the cutter. So if you buy from the importer, you've already paid that markup and can't mark it up again except to a retail buyer or someone who doesn't know any better. I think if you can't speak Thai or Chinese you are going to be taken advantage of, unless you have a relationship with someone you can trust. If your daughter works for a wholesaler, I assume someone actually travels to Asia to buy this stuff. If she can get you a deal at that level, and you can figure out who to sell to, it may be an interesting hobby. You probably won't lose money because the money is in the markup. That is, if you buy good quality, and you'll have to learn that. The people who really make money in the diamond business are Orthodox Jews. They have relationships that go back for generations and they know who they can trust.