Wednesday, 25 July 2012

Secret Millionaires

According to a recent CNN news article there are from $21 to $32 TRILLION hidden in offshore tax havens by some 10 million of the earth’s “super-rich.”  The amount adds up to the economies of Japan and the U.S. combined.  Just to let you know, Toddwaz is not among them.  The article focused on the tax implications; in that hundreds of billions are not being channeled into governments’ coffers.

I’m more offended that this money is being removed from local economies.  Through taxation, investment and spending the money would trickle-down through all areas of the economy; including jewellery stores.  As one of my clients discovered, there’s more money out there than we can fathom.  A $170,000 diamond purchase would make anyone’s day.

My lawyer once commented that he’s amazed at the wealth of some of his clients who NEVER spend any of it.  They live in a modest house they’ve had for decades, they go on simple holidays or travel in their 80s vintage motorhome, and it pains them to touch the $6Million capital they’ve accumulated.  They are “secret millionaires.”

The money is out there, and that’s precisely why we need to continue promoting big diamonds and high-end jewellery design.  While we spend most of our time catering to people who have to sacrifice much in order to afford a nice jewellery treat, some of our time must be devoted to driving demand for luxury jewellery.

If the most expensive bauble we are able to show a secretive multimillionaire is $15,000, then it’s no wonder these people are tempted to sock-away their cash in the Grand Caymans.  Through trunk-shows, diamond promotions and working closely with suppliers, you might be able to expose more clients to bigger and bigger pieces.  

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