[meteorite-list] Auction Questions

[Adam Hupe]

Dear Greg and List Members,

The reality is:


There may be about a dozen dealers that realize this type
income.  It would be extremely difficult in this economy to manage any
sort of meaningful income like you suggest year after year.  A
$1,000,000.00 meteorite inventory can only be turned over about once every 10
years not counting one or two lucky stones.  On the other hand, a
$1,000,000.00 inventory in computer or car parts can be turned over 36 times or
more in a single year, a much simpler way to generate a decent income, even at
11% gross margin.   
 
Properly marketing meteorites means that 20% or 20 grams has
to be deposited to make it official, lab fees paid, around 28-32% cutting and
polishing losses, travel, business and taxes expenses have to be incurred. This
represents a greater than 50% lose before a meteorite is even ready to be
marketed plus sometimes years waiting for classifications for those who do not piggyback.  The addition of 40% auction fees can very easily push you into
drawing red ink.
 
The main reason for dealing meteorites has to be the love
for the avocation, not the "big bucks"
 
Kind Regards,

Adam