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| Gems & Jewelry |
A Fresh Market for Stale Stones
Jill Newman
01/01/2004
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SellJewelry now receives about 50 calls a day from interested sellers who visit its offices, an affiliate jeweler such as Martin Katz in Beverly Hills, Wilson & Sons in Scarsdale, N.Y., or Robert Lawrence in Washington D.C., or simply mail in their jewels. "It’s our extensive connections in this business that allow us to quickly distribute large quantities of jewelry to a network of dealers and collectors," explains Del Gatto, whose model outsiders would be hard-pressed to duplicate given the insular nature of the business. Incoming jewelry is merchandised with a few compatible pieces in a pouch and sorted by category, such as Art Deco, mid-size diamonds or colored gemstones. SellJewelry allows dealers to view the offerings and place a concealed bid on any pouch of jewelry. Typically, jewelry moves in and out of the showroom within a 30-day period. This process allows the company to get the strongest prices from the trade; SellJewelry supplies some dealers with upward of 80 percent of their merchandise. But this is not to say that the practice is without its flaws: "Occasionally," he admits, "we lose a little money on a purchase, but with so many transactions, sometimes we have to come up a loser."
"It’s a very innovative concept," says a third-generation estate jewelry dealer who requested anonymity. "They are networking on a large scale and can provide me with a great selection of jewelry. Otherwise, I would have to work with a large number of private clients to find goods." This jewelry broker visits SellJewelry almost daily to view the latest acquisitions and make his bids.
Not every transaction, however, is a willing one. Del Gatto finds himself occasionally appraising and buying jewelry from banks, attorneys, executors of estates, a disgruntled spouse or European aristocrats. "Discretion and tact are of the utmost importance in this business," he says, recalling one woman who came to sell a 6-carat fancy yellow engagement ring with a retail value of $125,000 after her fiancé abruptly called off the nuptials.
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