What does a consignment mean in the gemstone trade?

In the gemstone trade, a consignment refers to a loan of goods from one dealer to another. This arrangement typically involves one dealer providing gemstones to another dealer for sale, while the original owner retains ownership until the stones are sold. The dealer receiving the consignment will usually take a percentage of the sale price as a commission, and once the item is sold, the proceeds are shared according to the terms of the consignment agreement. This method allows dealers to showcase a wider variety of stones without the upfront cost of purchasing the inventory outright, fostering collaboration and expansion of offerings in the market. The nature of a consignment deal also means that the risk is spread between the two dealers, as the original owner only gets paid once the gemstones are sold.