Start a Business Selling Precious Gems and Stones

A Gemstone or Gem (also called a precious or semi-precious stone, a fine gem, or jewel) is a piece of mineral, which, in cut and polished form, is used to make jewelry or other adornments. However certain rocks (such as lapis lazuli), or organic materials that are not minerals (such as amber or jet), are also used for jewelry, and are therefore often considered to be gemstones as well. Most gemstones are hard, but some soft minerals are used in jewelry because of their luster or other physical properties that have aesthetic value. Rarity is another characteristic that lends value to a gemstone. Apart from jewelry, from earliest antiquity engraved gems and hardstone carvings such as cups were major luxury art forms. The carvings of Carl Fabergé are significant works in this tradition.

Selling precious gems and stones can be as simple as setting up a small stand at a craft fair or can become a much larger business that includes jewelry design. Whether you just want to sell the stones and gems themselves or you want to delve into jewelry and other gem stone uses, you can make a lucrative part- or full-time income doing either.

Step 1

Learn as much as you can about gemology. Although being a gemologist does not require a degree, it is important to become very knowledgeable in the different types of stones, instruments and laboratory services that are available. Contact the Gemological Institute of America or another gem trade organization, and take their online or on-campus classes.

Step 2

Write up a business plan that details how you intend to sell your gems and stones. Some retailers work strictly online and sell through online auction outlets and websites, while others have retail stores or go to craft fairs and festivals to make their sales.

Step 3

Arrange to purchase your gems and stones through a dealer. If you live in an area that is known for a specific stone, such as Amber, you can purchase your stones locally and then polish and set them as you like. If you want to deal in nonlocal stones, locate a dealer through the Gemological Institute of America, American Gem Trade Association, or a mineralogy club, and contact them about purchasing their stones and gems for resale.

Step 4

Rent or purchase your retail outlet, if you intend to have a store. Once you have your business address, you can apply for a business license from your city or county, if necessary, as well as a Tax Identification Number (TIN) from the Internal Revenue Service. If you intend to start your business from home, whether online or working at fairs and festivals, your business address is your home address.

Step 5

Purchase your packaging and shipping materials. Gems need to be well-protected, so purchasing small, padded boxes for each stone or set of stones is necessary. In addition, you will need to mail your stones in padded envelopes or small boxes if shipping to other places. Design labels to put on the boxes so your customers know how to contact you for another order if need be.

Step 6

Market your business by attending local events and setting up a website whether you intend to sell online or not. Brochures that detail what type of stones you deal in as well as other services you offer are helpful for handing out to potential customers. If you have a retail location, make sure to hold a grand opening event and offer different types of events throughout the year to encourage new business, such as gem cleaning or an informational seminar.

Tip

If you need a business loan to start your business, be prepared to present a professional-looking business plan to the loan officer.

References (4)

About the Author

Michelle Hogan is a writer and the author of 13 books including the 2005 bestselling memoir, "Without a Net: Middle Class and Homeless (With Kids) in America." Hogan studied English at American University and has been writing professionally since 1998. Her work has appeared in "The New York Times," "Redbook," "Family Circle" and many other publications.

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Saturday, August 30, 2014