How I Started a Real Diamond Business with Just $1,000

“It didn’t cost me more than a plane ticket and common expenses,” says Jose Aman, Argyle Coin CEO.

Why the Diamond Industry?

Currently, more and more individuals are seeking interesting and promising opportunities to launch new startups, start their businesses, and work for themselves. With such a wide range of industries, the choice is limitless, but the question remains: which industry is the best in terms of offering profitable and favorable conditions?

The diamond industry has always been favored by admirers, as the gemstones are known for their value and high demand. The gemstone business has existed for centuries due to the fact that gemstones don’t tend to decline in value, and therefore promise prosperity to those engaged in their trade.

As a rule, the value of diamonds depends upon their supply. Considering the fact that the supply of diamonds isn’t very high due to their rarity, their value is always significant.

There are various kinds of diamonds, with the colored ones being the rarest of the rare, as only one out of 10,000 is a colored one. Their attractiveness determines not only their value, but also an opportunity for long-term gain. The demand for diamonds has actually driven prices up as much as 400% per carat in the last decade.

Can you imagine that more than $1.1 billion worth of extreme high-end diamonds, colored gems, and jewelry were sold at one auction by one of the world’s most renowned houses in 2017? And that’s just one statistic! Some of the most expensive offerings have included fancy colored diamonds, such as:

• 12.03-carat Blue Moon: $48.4M (Nov 2015)
• 14.62-carat Oppenheimer Blue: $57.5M (May 2016)
• 59.60-carat Pink Star: $71.2M (Apr 2017)

Moreover, within the last eight years, prices have been constantly increasing, as indicated by the following:

• Pink diamonds: by 180%
• Blue diamonds: by 70%

Despite the fact that historically, only royalty could own such precious stones, today, the diamond business is open to anyone who admires it, promising a full scope of opportunities and incentives.

Starting a Diamond Business From Scratch

Starting a diamond business or getting into gemstone trading can seem complicated at the beginning, especially for novices in the industry. However, it is not as scary as it may appear at first. For a beginner, the best way to start this business is to precisely evaluate all possible conditions, prices, and, of course, personal capabilities.

“You need to have interest in this industry, basic knowledge, and the desire to sell,” says Jose Aman, Argyle Coin CEO.

It is recommended to start small, investing little money to see how your strategy works out and how the business proceeds.

Before diving deep into your new business, it is crucial to become acquainted with the market situation, price conditions, and information about supply and demand in crucial areas. Thus, if your region does not provide any opportunities for purchasing fancy colored diamonds, and you know people interested in them, why not offer the community the opportunity? The demand is obvious. On the other hand, if your region is popular for diamond mining or cutting, then you’ll probably face a great deal of competition.

There is always an incentive mechanism to strive for the achievement of your goals, and a compelling story of “how I do this” behind the scenes. Before considering the basic options to start with, let’s see how “unreal” things can come true with a step-by-step action plan.

The Story of Success: How I Started My Diamond Business with Just $1,000

This story is about Jose Aman, Argyle Coin CEO.

“With more than 25 years of experience in the colored diamond industry, I have retailed more than $200 million. Having established a number of corporations as one of the major distributors in South Florida, I can say that I started my business without huge capital!

In the beginning, I worked with my mom every single day, because my dad had had a stroke. I used to help her collect and sell jewelry, including diamonds, to her clients in Venezuela.

When I moved to this country, I borrowed money from several friends to get a plane ticket from Florida to New York, where I went to the diamond district without knowing anyone and found the company Green Diamond. I got a price and a picture, started another company, and made a $20,000 profit in just one day. Well, that was many years ago. Those were the very first diamonds I sold all by myself. The queen diamond I had was natural, so I went and presented it to another company I didn’t even know. I told them what it was, showed them the picture, and they’d never seen a diamond of that quality before. They said they wanted to see it, but I refused, and told them that I was going to sell it to another client, which I had planned to do that day. They were so impressed by the description I gave of that diamond that they actually paid me in advance.

That is the story of the first diamond I sold. And as you can see, it didn’t cost me more than a plane ticket and common expenses.”

If you’re really interested in the diamond industry and have a passion for it, it will be easy to start your own business from scratch. You just need to have an interest in the industry, basic knowledge, and the desire to sell!

What Are the Basic Options?

Provided that a beginner without previous work experience and decent capital isn’t likely to reach amazing heights in weeks and become a monopolist, we offer the following options to start with:

• Become a manufacturer. With the required skills, desire, and effort, you can start as a manufacturer in the diamond industry even without high-quality technology. You can purchase rough, uncut gemstones at a lower price and sell them at a higher price after polishing them up.
• Become a trader/reseller. In this case, it is better to choose the lower-price gemstone market and focus on one concrete area. Selling retail gemstones, you have a better potential for earning. Keep in mind, though, that the professional services of cutters will be required. In addition, it might take some time to establish the trading process.
• Become a broker. As long as you know many people interested in purchasing gemstones, you can build up their trust and your audience, sell gemstones, and gain a profit from the percentage. This does not oblige you to have startup capital, as it does not require much in terms of expenses.

Here are some easy steps to follow when starting your diamond business:

1. Be patient, contribute your time and effort, and have a certain amount of capital to start with.
2. Decide what type of diamonds/gemstones you would like to trade.
3. Establish connections: find experienced cutters and industry professionals.
4. Build up your client base.

As long as it is impossible to make diamonds yourself, as this is nature’s merit, you’ll have to purchase them rough (if this is the strategy you prefer) and use cutting services (if you are not the cutter). This is a significant aspect to emphasize, as you should keep in mind that it requires additional costs that vary according to gemstone type. Diamonds and sapphires are considered costly, while topaz, tanzanite, and aquamarines are less expensive.

Some Tips for Beginners:

• In order to cut down on your expenses, purchase the stones directly in the areas of mining, e.g., Myanmar, Sri Lanka, Madagascar, etc. Keep in mind: you must be aware of proven quality; if not, hire a consultant to avoid bad-quality stones.
• Go to specialized trade shows, as they offer gemstones at lower prices.
• Remain patient, learn the basics of signing contracts, and gain more and more experience in the industry.
• If your starting capital is limited, choose the type of gemstones you can afford. Every product has its buyer. With time and experience, you’ll be able to proceed to higher-level trades.
• Don’t underestimate marketing strategies. Contribute some funds and effort to promote your business wisely. Research the best strategies to build up your audience.
• Decide how exactly to sell the gemstones. Would you prefer renting a place, or maybe designing a web page? Each approach requires different business strategies.
• Keep in mind that you will have to certify your product. The more qualified the work of the cutter, the higher the value.