[siggy]

Hello everybody!

As this is my first post, please allow me to introduce myself. I am a young man from Norway named Sigurd. I am in the middle of starting a new import company and in this occation i have researched the Norwegean market and found that Norway (one of the most expensive countries in the world) are in lack of good pearl importers. It has therefore been decided that pearl import will function as the backbone of the company.

The 31'st this month (31.03.06) two of my partners and myself are traveling to Manilla. As a start we are going to evaluate the market by investing around $3500 on pearls.

Allthoug one of my partners have lived in Manlilla for about a year, I feel that what we need is a friendly person, native or not, who speaks the native language and have a decent knowlege of the pearl market in the Philippines. I hope anyone on this forum that lives in the Philippines are interested in helping us!

Im sorry but i cannot promise great sums of money for this, frankly because we need to live very low budget down there. What i can promise you on the other hand is a good meal and a fair amount rounds of beer on our expence.

Any replies are most welcome!

Siggy

[Zeide Erskine]

Hi Siggi,

If you want to spent US$ 3,500 on pearls in the Philippines you have two options. Buy one pair of South Sea pearl earrings or about 250kg of Beijing market rejects. While you may be able to resell the South Sea pearl earrings at a modest profit in Norway, I am not so sure about the Chinese freshwater pearls. In short, your budget suggests a trip to China and your destination suggests that you need a larger capital base. It may actually be cheaper to hop over to Russia, get on the Transsiberian railroad, switch in Vladivostock to the narrow gauge to Beijing and shop in Hongquiao market. It is by far not as pleasant a trip, but the travel expense is whole lot less and the economic reward is far greater. Actually, since you are going to save so much on travel expenses and no sane Chinese person is going to try bullying a bunch of Norwegians, you may take the train further to Zheijiang and hit the Zhuji market. Now, all you need is a Chinese guide who speaks Norwegian or a Norwegian who speaks Chinese.

Zeide

[jshepherd]

Welcome to the forum Sigurd!

I definitely will have to go with Zeide on this one. A $3500 investment will not get you far with Philippine pearls. Even a $35000 investment would not go far. You are definitely on a Beijing budget.
To give you an idea, you can spend $3500 on one, single pearl in the Philippines.

Edit:
I think it is important to note that there are a lot of Chinese freshwater in the Philippines as well. Zeide and I are both referring to the likes of Jewelmer's wares - most notably the golden South Sea pearls.

[BranLoud]

I just wanted to chime in on this thread. Jeremy, when you say $3500 in Beijing i'm assuming you're talking freshwaters by the kilo? Or are you referring to post manufactured jewelry?

In response to Siggy, I have a close filipino friend here in the US that teaches conversational english periodically in the Phillipines who has recently expressed interest in the pearl industry, but that may not be of much help to you unless you're fluent in english. (sorry for my lack of Norwegian knowledge.) We have been talking about making a trip to Manila but we aswell are thinking a Beijing trip is currently better fit.


-Brandon Louder

[jshepherd]

Brandon,

You made me do a double-take on my last post. That would be quite a pearl in Beijing. But Beijing is in China, not the Philippines

[siggy]

Thank you for your replies.

I allready have buyers for the pearls. The $3500 is only ment to be a small, first time investment to evaluate the Philippino market. More zeroes will be added later.

Its strange that my connections assure me a much better prize on those ear rings you mentioned, Zeide Erskine.

As i stated in my last post, I need a person who speaks Tagalog and knows the Philippino pearl trade. I allready got a finger inside a pearlfarm, but what i need is a reliable local who got more alternatives for future investments and partnership within the Philippines.

I wasnt looking for a guide. Im sorry that i did not make myself more clear on that subject.


Well, Brandon Louder... When you tell me that:

"I have a close filipino friend here in the US that teaches conversational english periodically in the Phillipines who has recently expressed interest in the pearl industry, but that may not be of much help to you unless you're fluent in english. (sorry for my lack of Norwegian knowledge.)"

Can you explain what good your english teaching friend could do to me?

[jshepherd]

You can buy goldens for much less, true, but top quality pieces in the Philippines are some of the highest priced in the world. It would be good for you to have a realistic idea of what you are going to be dealing with. YOu may be able to get small, mixed lots of loose pearls in the $100 per pearl range, but these will not contain 'fine' grade. If you plan to purchase fine quality pearls you will realistically have a budget for under 10 pearls. You can easily pay $3500 for a single pair of earrings - well matched, of fine quality. But, you can also pay $250 for the same pair, dull yellow.

Another issue is dealing with the loose. If you are making a 9-10mm necklace you will need 43 matching pearls. You will need at least 150 pearls (already closely color-matched) to make the strand.

I really, really suggest doing as much research as possible before investing a lot money in this venture. SSP's are something people in the pearl industry typically work their way up to after many years (I was in business for nearly 7 years before buying them), because the investment it takes to make the strands and carry inventory is well over a million dollars. My first purchase was over 500k, and I had to carry the unmatchable inventory until my next 500k purchase 6 months later before I could turn a profit.
Beijing and freshwater pearls are for beginners, the Philippines truly are not - no matter how much local help you get - in the islands everyone knows someone who knows someone that is in the biz, and everyone wants a piece.

[Caitlin]

Hi siggy
We have a member who lives in the Philippines.
Doug Anderson, Integrity Pearls
"Quality Pearls, Great Prices"
www.integritypearls.com

Read his bio on his web page as he may be helpful to a person starting out in the business. He buys in China, but I bet he is very familiar with the local pearls.

You can send him an email and/or a private message through our links. Good luck!

[pearltime]

Siigy said,Its strange that my connections assure me a much better prize on those ear rings you mentioned, Zeide Erskine.

Someone mentioned on another thread that Chinese freshwater pearls are being sold in Manila. Perhaps it is hard to distinguish them from SS pearls. Aren't some fresh water pearls shell nucleated? Therefore they might look like SS pearls.

I have read that in the Middle East fresh water pearls have fraudently been sold as naturals.

[Zeide Erskine]

Hi Siggy & all,

I was referring to the contrast of top-end and bottom end pearls that are being sold in the Philippines. While you can get there the most exquisite South Sea pearls at a hefty price tag depending on quality and color, you can also get freshwater pearls that would be considered FSQ (food supplement quality) in China for very little money. A US$3,500.00 pair of fine golden pearls would not even be really expensive. The most expensive color is platinum rose (not rosé, that's an overtone designation). About 2 years ago a matched pair of 9mm platinum rose pearl earrings fetched US$ 8,500.00 and that is at auction, undrilled. If one wants to buy a selection of South Sea pearls for US$ 3,500.00 one has to buy medium to low quality in the weak yellow/cream range. They may be hard to sell in Norway.

However, South Sea pearls do make sense for Nordic people (being one myself) because we tend to be rather on the tall side and the South Sea sizes simply look better on us. Another forum member is planning a buying trip to Zhuji/Wuxi. Since he can use some strong men to protect him while buying pearls for large amounts of cash, maybe you can combine your resources, learn a thing or two about judging pearl quality, and get the hang of bargaining for pearls. As far as getting into the pearl import business is concerned that seems to make a whole lot more sense. Taking the northern land route to Beijing also makes a lot of sense if you are on a budget and starting from Norway. Although the trip may not be as pleasant as flying business class to Manila, the beer is a lot better on the Transsiberian Railroad, not to mention that Asian airlines usually do not offer seats that easily accommodate people over 170cm.

Zeide

[jshepherd]

Originally Posted by pearltime

Someone mentioned on another thread that Chinese freshwater pearls are being sold in Manila. Perhaps it is hard to distinguish them from SS pearls. Aren't some fresh water pearls shell nucleated? Therefore they might look like SS pearls.

It is very easy to distinguish the difference between the pearls, but it does not stop low-end Chinese from being sold as locally produced. I have a friend who brought back a few pearls on a string from the Philippines thinking (as explained to him) they were locally produced Pinctada marg. They were dyed freshwater.
The nucleated fw actually look similar to free form baroque ssp. There is just not enough currently production to worry about getting these pieces. You can distinguish them by the location and shape of the nucleus as well - it is a free form with one area consistent symmetrical.
Besides, with some HK companies like Rio intentionally mixing these pieces with Tahitians and South Seas to create unique pieces, the prices on the fine quality nucleated pearls are actually going up quickly.

Although the trip may not be as pleasant as flying business class to Manila, the beer is a lot better on the Transsiberian Railroad, not to mention that Asian airlines usually do not offer seats that easily accommodate people over 170cm.

I am 6'1 and I typically fly the Asians. If it is not buiness class it takes several glasses of scotch to get comfortable:

[pearltime]

Zeide when you said,"Maybe he'd be safer with a Viking bodyguard. I heard there are some adventurous Norwegians for hire on their way back from the Philippines. " I laughed because I am a married female and you know, I don't think my husband would buy it. However he might be comfortable with it if he went too..

Zhugi is definately in the picture but not immediately. Perhaps in the next 12 months. It would be nice to have another contact in Zhugi to hang with and to discuss prices,leads etc. and to hang together as a buying force.

I am thinking for a newbie Hong Kong or Bejing should be the first shopping expedition.

Thanks Zeide and Jeremy for all the info.

[Zeide Erskine]

Hi Pearltime,

What reservations could your husband possibly have against you taking a vacation with a bunch of Thor Heryerdals and Thorstein Raabis? Or maybe a selection of younger Brad Pitts?

Zeide

[Caitlin]

I flew Malaysian Airlines to Bangalore last month. Remind me to never fly economy class again! I am an average weight 5'5" female and I was excruciatingly uncomfortable in the tiny seats on a flight that lasted 13 hours without a stop and 26 hours total. I was a wreck before I even got there!

[Zeide Erskine]

Hi Caitlin,

Lucky you for flying so luxuriously. Try Air Merpati. But, then, in Indonesia sailboats are the way to go, at least if you intend to arrive at your destination.

Zeide