Merry Christmas

I want to wish a Merry Christmas a Happy New Year and overall pleasant holiday season to all my blog readers. I figured the best gift I could give to rock lovers would be some photos of beautiful rocks for you to admire. You may click on them to see an enlarged photo. I hope you enjoy. Blessings to all.

The Crisis

The current financial crisis affects everybody to some extent. What should you do about it? It depends. Despite the fact that the USA market has been the center of the crisis, it is possible that the mineral dealers in the USA can make lemonade out of lemons. What does it depend on? Your cash position. If your cash position is strong you can benefit 3 ways. 1. Self finance your inventory buildup. 2. Take advantage of the stronger dollar by upfront payment. 3. Withstand a consumer slowdown.

In the current tight credit market, having cash will give you an advantage in what I argue is a buyers market, at least for the USA. You can buy while others have to wait on the sidelines.

For the last few years the dollar has been losing value and especially in relation to the Brazilian Real. Brazilian producers have tried to keep their prices the same in dollar terms, but many producers have gone out of business and others have raised prices. Under the current crisis the dollar has appreciated as investment has flown out of stocks and into supposedly safer treasury bonds, thus propping up the dollar. This stronger dollar makes it easier for Americans to buy Brazilian minerals and more expensive for Europeans. This should be the perfect time to buy for Americans and perhaps some other countries that have a currency pegged to the dollar. Brazilian producers have not lowered their "sticker" prices in response to the dollar valuation yet because they hope to make up for losses while the dollar was going down. However, when it comes time to close a deal they are more flexible to discount, especially if you can pay upfront. There is a lot of fear that the bump in the dollar is temporary, and waiting for a 30-90 day cycle of shipping and payment upon delivery can be a recipe to lose your shirt in the volatile currency exchange market. Cash payments will almost certainly lead to better deals.

Some dealers are worried that even if they have cash now the slowing of consumer spending will lead to weak sales and so building up their inventory would be pointless. While a reduction in consumer spending is possible, mineral dealers have a benefit that many don't. Minerals are non perishable and don't face a technology curve. Perhaps good buys today won't be made profitable immediately, but the dealer who buys now will have better margins when the upturn arrives.

Every business and situation is different and nobody knows your business like you do. I can't speak for everyone, but as I evaluate the situation I think it's a good time to buy Brazilian minerals, as long as you have the cash and the patience. I'd love to hear comment from the readers as to how your business has been affected so far what are your expectations for 2009. I would especially love to hear from any old-timers that have been around in the business long enough to report how the minerals market reacts under economic downturns.

Traveling in the USA

I'll be traveling throughout the USA starting next week. I thought I would let everyone know some of my travel plans, in case I'm in your neck of the woods and you would like to schedule a meeting.

August 30-31st I will go to the Arlington, TX Gem and Mineral Show. I will not be participating in any exhibition, but I will come by and visit some exhibitors I know and be available to meet people. For information on the Arlington show check here. I will be in the DFW area for a few days before and after as well.

September 12-14th. I will be at the Denver Gem and Mineral Show. Here I will be helping my client Dan Kramer of Rockology exhibit (check out his new web site). To find out more details about the Denver show check here. For a floorplan to find me at Rockology's booth check here.

September 26-28. I will be at the Houston Gem and Mineral Show. I'm not exhibiting, but look forward to seeing many folks I saw last year.

Early October I might be in the Hot Springs/Mount Ida region, but I can't confirm that yet. If you would like to meet up and talk about finding great mineral sources in Brazil or just to have a cup of coffee and chat let me know. My USA phone is 214-457-5916. I hope to see folks as I travel about.

Closing the Mines

Over the last few months there have been some developments in southern Brazil that any amethyst fan should be aware of. Several government agencies have made life more difficult for the mine owners of southern Brazil. Brazil has a whole alphabet soup worth of government agencies... mines and energy, environmental protection, department of labor, health department, department of agriculture, revenue/tax collectors, etc. They all came to the amethyst mining region and "laid down the law." They shut down around 15 of the 200 or so operational mines in the region. The various agencies say the mines are in violation of several laws and codes. The miners, who currently work as free agents and get paid according to production, are to be made employees and put on the payroll. Every mine is supposed to hire a environmental and structural engineer to oversee the mining and demolition processes. The mine owners are supposed to install ventilation systems, water drills (to reduce dust formation), masks, and other safety equipment. All the mines are to create a plan for environmental restoration over the next 12 months.

What does this mean to you? It means that the price of amethyst is going to go up. The mines will either increase production costs to meet the new standards or cease being productive. Of course the enforcement of the law will be inconsistent...par for the course in Brazil, but it will still mean either an increase in production costs, a reduction in supply or a little of both. Prices are already going up some. Most of the time though, because nobody likes to raise prices, the quality drops. Amethyst previously sold as B quality gets labeled as A. More often the miners just add more cement to the cathedrals.

What should you do about it? If you have a chance to buy amethyst at a good price take advantage of it. These conditions, plus a falling dollar will only keep putting pressure on the price. If you order amethyst cathedrals from Brazil, make sure you have a supplier or broker you trust to check the quality of your order. Also, consider ordering more free form formations. These can be cut at the bottom to stand flat or placed in a wood base. That way you won't need any cement and you can insist on natural pieces with no paint. As always, I'm available to help you if you have any questions. Here are some links to articles about the situations in the mines. They are in Portuguese, but you might want to take a look here and here.

Exposol 2008 - The Scoop

Exposol 2008 was, despite the rainy weather, a fantastic event. It’s amazing to see so many unique mineral specimens displayed so well. The prices for the specimens at the show are a bit high, but there are plenty of bargains around town outside the show. I’ll try to write less and let some pictures tell the story. The eye catching piece of the show was the giant amethyst geode from Uruguay. It is impressive not only for its massive size, but for its dark color and multiple bubble formations.

My personal favorite piece was this agate geode with the top open. The brilliant blue and the fine druze crystal make it a aesthetic dream. An amethyst cluster with a unique sculptural formation was part of a set of seven clusters, all from the same geode. The asking price was ridiculously overvalued in my opinion, but a Canadian buyer purchased the set. (Goes to show what I know)

Along with all the mineral specimens, local jewelry designers exhibit their products. On Saturday there is a brief fashion show where they show off their work.

Surrounding all the gem and mineral events there are agricultural and animal exhibitions, great junk food, and the ubiquitous “soberanas”- the queen of the fair and her two princesses. While Exposol is a great show there are things that could be done to improve it. There are exhibitors from all over Brazil, but the show is weighted heavily toward regional minerals. If a greater effort was made to attract exhibitors from other parts of Brazil and Latin America the show would be much better. Many of the local minerals are large specimens. A greater diversity with smaller collector specimens would add a new dimension to the show. Also, the city of Soledade is not quite as sophisticated in dealing with foreigners as is should be. (It’s improving though) Poor English translations in printed material, few good hotels, limited restaurant options (two of the better ones in town went out of business), and difficult internet access are all areas that could be improved to make Exposol more attractive to foreign visitors. Exposol 2009 will be on May 7th-May 10th. I would be happy to help you make plans to come.

Exposol 2008

Exposol 2008 will be May 1st-May 4th, 2008. This is arguably the most important gem and mineral show in South America. It’s a fantastic time to come seek great specimens from southern Brazil as well as Minas Gerais and other gem and mineral regions of Brazil. Now would be a great time to look into planning your trip as hotel rooms will fill up quickly. Let me know if I can help you. If you want to know more about Exposol, check out my previous posts
http://aksiaminerals.blogspot.com/2007/05/exposol-latin-americas-biggest-gem-and.html
http://aksiaminerals.blogspot.com/2007/05/exposol-part-ii.html
http://aksiaminerals.blogspot.com/2007/05/exposol-part-iii-best-part.html

Expopedras 2008

Today I will share pictures and commentary about Expopedras. This is a gem and mineral show that occurs every other year. It is the second time I have been. The show is in the town of Ametista do Sul. The exhibitors are all from the region known as the “Alto Uruguay.” The region has this name because it is a plateau region near the Uruguay River. It is not particularly close to Uruguay. It’s actually closer to Argentina and Paraguay. This area of about 6 municipalities (kind of like counties in the USA) is where the world’s largest amethyst ore is. You can find some very fine specimens at the show, but it is much less diverse than the Exposol show in Soledade. At Exposol there is material from the “Alto Uruguay”(amethyst and selenite) but also minerals from other parts of southern Brazil as well as crystals and gems from central and northern Brazil. This years Expopedras had many foreign visitors, predominantly Chinese. As with many shows, the material in the booth is just the “bait” for customers to make bigger purchases. The local paper estimated that about 400 tons of minerals were sold during the show. The show is quite an event for little Ametista do Sul. The town is fairly isolated. All the roads to the town are dirt roads, and one of the main roads has no bridge and requires a ferry boat to get across. The show brings people from different countries for business and the locals from the surrounding small towns. At night there are fun events like a rodeo and a concert. The business activities take a backseat and there is a chance for some fun. It’s not sophisticated entertainment, but it is a good time.

Tucson Gem and Mineral Show 2008

I'm a little late in getting out this post due to some computer issues I have had recently. The Tucson show this year was great. Except for about 2 days, the weather was nice. I got to see many of you from last year again, and that is always fun. I never cease to be amazed at the diversity of buyers in Tucson. It's fun meeting so many different kinds of people. There is certainly no "profile" for mineral lovers. Young and old, hippie and yuppie, geologists who know all the chemical bond structures in each crystal and those who just think the rocks are pretty, foreigners and Americans... the list goes on. It's part of what makes the Tucson show so fun for me.

This was my third year in Tucson and I have decided that I think the show is too long. My own experience and what other dealers say seems to indicate that during the opening weekend and the first week buyers find the items they most want. The second week slows down considerably as everyone waits for the bargains of the final weekend. I think a week with the weekend on both ends of that week would be plenty of time. From set up to take down for the dealers would spend 11-12 days instead of 18. It would still allow two weekends for buyers, in case the buyer had a conflict one weekend. Also, by reducing the length of the show dealers can lower overhead costs, which should translate to better costs for the buyers. Don't tell the Tucson Chamber of Commerce or Hotel association. I am sure they would just as soon add a week of show than take one off. I'd love to hear from buyers if reducing the show to 9 days instead of 14 would have a negative side for you. Please leave your comments. Obviously what is best for the buyer matters most.

I have posted several photos of the Tucson show. Just click on the link bellow.

http://www.facebook.com/album.php?aid=26756&l=cc195&id=658697165

Gearing Up for the Tucson Gem and Mineral Show

First I would like to start by wishing everyone a happy 2008. I hope the holiday season was enjoyed by all. In a few weeks I will be headed to Tucson for the Tucson Gem and Mineral Show (Feb 2 - Feb 16). One of my clients, Rockology, will be exhibiting and I will be there to help them out. Rockology will be at the Mineral and Fossil Marketplace, just off of Oracle. The picture is of last years booth, Rockology's first year to exhibit in Tucson. This years space is larger - still at the Mineral and Fossil Marketplace but in a different corner. I'd love for you to come by and visit. Rockology will have a great selection of collector specimens from South America. The selection is larger and better than last year. If you like premium agate slices, Rockology's selection is second to none. It's also the place to find agate, amethyst, and citrine geodes, rare calcites, selenite crystals - all with great color and/or special formations. Rockology is family owned by Dan Kramer and his wife Shelley, so it's always a fun, laid back atmosphere in the booth. If you come by around closing time we often break open a bottle of wine, so come by and relax with us at the end of the day. Tucson is a great time to buy, but also it's an opportunity for you to observe the kind of work I do in helping my clients select mineral's from Brazil. If you are exhibiting in Tucson I would enjoy coming to visit you. Give me a call at 214-457-5916 and we can schedule something. Also, feel free to call if you have any trouble finding Rockology. I look forward to seeing many of my blog readers in Tucson. Happy rock hunting.