Natural Progression of Rough Buys

[azvinnie]

Hmmmm. Don't know how much help I can be, but since one of my poor attempts at humour was quoted, I'll try.

Will start with the "high-grade" price. From what I've seen the real top-grade rough can and does reach into five figures per ounce. I've gotten parcels with what the average person (including me) would call high-grade for well under $1000/oz. As the price goes down, the color bars get thinner or wavier or have more inclusions or other problems. But you can still cut very nice opals from between the problem areas.

The type of opal (black, white, crystal,...) and source (LR, CP, Mintabie,...) will have major influence on price too, so there's really no way to guesstimate price per ounce for rough without considering those factors.

Given my experience over the past two years, I'd recommend that any new cutters try to visit a gem show where rough opal will be sold, to see some different grades first-hand. Then do a lot of comparison shopping.

And then there's the "rule of thirds" that's been quoted several times around the forums, where you can expect to lose money on 1/3 of parcels you buy, maybe break even on 1/3, and make a profit on 1/3. Of course there's no guarantee that if you buy three parcels you'll get one of each. How's that for an "encouraging word"...?

Just work your way up through the price ranges you feel comfortable with. The practice you get on cutting lower grades will be well-appreciated when you hit a problem in a higher-priced piece.

[scribblygum]

Hi Iceopals & Azvinnie,

That was the most informative few paragraphs I've read in a long time.
Again, very aware that I could ruin what took nature millenia. Dont want to do that. Also the whole family is joining in the fun, we have 2 boys, 12 + 10 who LOVE lapidary. (must be in the genes, mum was a lappo) No better time to teach them, but they have to start at the beginning, as will I.

We have bucket loads (almost) of potch and colour and chips we collected ourselves from L/Ridge, which is our fave holiday place. Hopefully can find some bits and pieces amongst that, and will probably add to it with a bit more from the auctions.

Happy learn on low grade, but can't help buying the odd med. when I see it. Just addicted I suppose. Will try to resist touching it.

The only question I have is about this:

I used to always say that in order to get really nice material one should start looking at material that is no less than $250 per parcel.

....for how many cts? I get it that it's not a simple matter, but are you saying high grade parcels of (?) cts should possibly START at around $250? then there's higher grade, and unbelievable grade, and stratospheric grade , and lastly probably In your Dreams grade. Right? Vinnies comment about the $1000's worth of opal is WAY out of my league. Maybe when I am first prize winner in Lotto...no swish house for me, give me a PARCEL!

Thanks for your great replies. Appreciated.

[azvinnie]

Hello Scrribblygum. I can't speak for Ice on the $250 figure, but it's common for prices to be per ounce. That makes it easy to compare one grade to another. And you probably already know this, but since others may read this, there's aprroximately 150 carats per ounce (5 carats per gram x 31.1 grams per Troy oz. = 155.5), so some quick calculations using 150 carats will give buyers a per-ounce price that's very close.

It's great to hear that cutting is a family affair for you and yours. That will make it even more fun. And to be able to go to The Ridge on holiday is what most of us over here can only dream of doing. Spent the holiday cash on rough, ya' know. But I will say that I haven't approached that $1000/oz figure all that closely in my rough buys, but still close enough to make me wince when I hit the "buy" button! What a buyer really has to look out for is when you start seeing per gram prices. Multiply those by 30 for a quick idea how they compare to other parcel prices. They can get way out of most of our leagues fast!

Now, here's a link to a post by Paul (President of the Opal Association) about last year's opal shows:
viewtopic.php?f=12&t=987

I haven't looked yet, but the Opal Association's web site might have a show schedule for this year. Or you could possibly contact Sedaopals or Opalplus for that info. I'll see about getting that info posted in a new thread here somewhere on the forums. There are numerous local shows in addition to the big ones. And going to a show is still the best way possible to get an idea of the price ranges for the quality you're looking to purchase.

V.

[scribblygum]

Suddenly a lot has become clear.....

I didn't realise you weren't here in Aus. I just assumed....

That explains why you wondered where I got the nickname - scribblygum - a Scribbly Gum is a species native eucalyptus gum tree local to my area (there are over 700 species of gum trees) in Sydney Australia. They have white bark with unusual scribbly lines on them, made by a little beetle that lives under the skin of the bark.
......a bit like the sand patches that live under the skin of the opal.. gggrrrr!!!)

I only realised when you said going to the Ridge is just in your dreams. Must be all the blood has gone tomy head from being upside down. (right?) We love the Ridge. My husband is going in a week, to take his folks on a holiday. I'm so jealous.
Maybe I'll post another topic (somewhere??? ) on the board with one or two photos of being a tourist at the Ridge. It can be extremely rewarding, and superfun fossicking on the mullock heaps. I found some great little pieces in the dumps. the ridge is around 800klms from Sydney, but easy to get to in a day, or two if you want to dawdle.

Jenny

[Iceopals]

Hiya Jenny!
Yeah, I a few bazillion miles from you and LR too, but we can dream!
I didn't put a weight to the $250 parcel because then it is being so specific, and I don't feel like that does any service to the question. You will find great 5-10c pieces that you will pay $250 for, and then there are those ounce parcels that you will thrill at only paying that for them!!! I guess that I feel like if you are trying for those $10 pieces, you will, on average, get what you paid for. But I have paid $50 for a single piece of rough (3-5c) and got a killer gem piece! Someone once did some math for me, knowing what I had spent on several stones, and the price was really quite hefty when you looked at it in per ounce terms. But in the realm of getting a nice stone it was way less than the stone was worth.
This particular conversation has taken place a number of times, and it seems to me that when you get to the couple of hundred figure (I chose $250 for chatting's sake) the parcels really do take a dramatic step up. But don't think for a minute that I'm talking about a pound parcel!!!!! You are just going to have to do a lot of looking, a good bit of cutting, and lots of listening. Also, play with the search function on the forums, you should find oodles of answers to questions you either haven't thought about asking, or if you had thought about them, you might have thought better of!!!!!

[keyguard123]

Hello Scrribblygum.
I can't speak for Ice on the $250 figure, but it's common for prices to be per ounce. That makes it easy to compare one grade to another. And you probably already know this, but since others may read this, there's aprroximately 150 carats per ounce (5 carats per gram x 31.1 grams per Troy oz. = 155.5), so some quick calculations using 150 carats will give buyers a per-ounce price that's very close.