London DE trades in finer quality gemstones, which have higher profit margins and greater liquidity. There is also much more competition between buyers for the finer grade of gemstones.
The higher liquidity of these trades enables us to turn over the funds and stock more frequently, up to 3 to 4 times per year, whilst also maintaining healthy margins.
The process of “turning” the stock involves sourcing, buying, re-assorting, re-polishing, certification and finally selling the stock, and takes about three months.
London DE has the opportunity to trade at each sales window, an efficient process from rough to finished goods, whilst retaining robust margins. Our model means that we trade at both end of the supply chain, with several opportunities to make sales.
We will focus our on the 3 major precious gemstones (ruby, emerald & sapphire) and, with increased funding, we will expand our international sales operations and increase our buying efficiencies.
With improved economies of scale, the company will have a stronger bargaining position in an industry traditionally reliant on extended credit terms.