For jewellers and dealers working with high-value loose stones, the choice between memo and outright purchase arrangements significantly affects cash flow, risk exposure, and inventory flexibility. Both structures have legitimate use cases — understanding when to use each is a key competency for successful trade buyers.
Outright Purchase
In an outright purchase, you buy the stone at the agreed trade price and take full title immediately. The stone belongs to you.
Advantages:
- Full control — you can set it, sell it, or return it to the wholesale market independently
- No time pressure — no return deadlines to manage
- May be eligible for further price negotiation given the commitment
- Simplifies accounting (direct purchase on your books)
Best for:
- Fast-moving inventory you have confidence in selling
- Stones you plan to set immediately
- Building long-term stock positions in stones you believe will appreciate
Memo Arrangement
On memo, you receive the stone for a defined period (typically 7–21 days for Amstela) to show to your clients. If a client commits, you convert to a purchase. If not, you return the stone with no cost beyond shipping.
Advantages:
- Zero capital tied up during the memo period
- Enables you to show higher-value inventory than your cash position would normally allow
- Reduces risk when selling to a specific client who hasn't yet committed
Best for:
- Specific client presentations for significant stones
- High-value items above your comfortable outright purchase threshold
- Testing client appetite for a new category or stone type
Key Considerations
| Factor | Outright | Memo |
|---|---|---|
| Capital requirement | High | Low / None during period |
| Risk exposure | You own it | Supplier owns it |
| Flexibility | Full | Time-limited |
| Insurance obligation | You insure | You insure while in possession |
| Suitable for setting | Yes | No (until converted) |
Amstela's Approach
We offer both structures to verified dealer partners. Memo availability depends on your account standing and current inventory allocation. Extended memo periods (up to 21 days) are available by prior arrangement with your account manager.
To discuss memo availability for specific stones or to initiate a trade request, contact your regional Amstela trade desk.
