‘A Porsche is hard to hang on the wrist.’

Each month, 8,500 people open their mailboxes and find a lion inside, holding a diamond in its paws. It’s the logo on an offbeat newsletter put out by Leo Hamel, a San Diego jeweler and self-made man who exhorts potential buyers of jewelry and Rolex watches to take advantage of his discount prices and “Make Leo Smile!” This month’s newsletter lists special Christmas-colored ruby and emerald rings--and thoughtfully points out that gems are the perfect gift because they have no calories. As an extra touch, the newsletter puts customers in the holiday spirit with a page of illustrated Christmas carols, including: “Oh come all ye thrifty, buy your ring from Leo” and “Jingle bells, Leo sells diamonds for a song.” Times staff writer Leslie Wolf interviewed Hamel at his store on El Cajon Boulevard and Bob Grieser photographed him.

I was born in the Navy Hospital here, and lived the first part of my life on Home Avenue in Southeast San Diego. Then, we moved out to Lakeside, and I went to high school at St. Augustine. I really had no idea where I was going with my life or what I wanted to do. I was a dance teacher for a year and a half. But I always kind of had an idea I liked stones and precious metals and things of intrinsic value.

I started in 1979 selling jewelry at Walker Scott. I had no experience, but it turned out I had a knack for it, and in the first month I was their stellar salesperson. The only thing I objected to was the mark-up. After two years, I started my own business and gravitated toward selling closer to cost.

Now, I deal in watches, diamonds and pearls, and I have nine full-time employees. Two of my sisters work for me, my ex-wife works for me, the husband of an ex-girlfriend works here. Almost everybody here is family in one way or another. . . . Everybody here knows how to do everything. The person who wraps packages could sell a diamond as well as a five-year veteran in the diamond business.

I come up with the ideas for the newsletter each month, but Robin, who has worked for me eight years, does most of it. Tammy, my fiance, takes the photos. It’s a bit of a group effort. When it started out, I used to just hand-write the newsletter on a piece of paper and mail it out. We’ve just kept it in-house, and we’ll probably always do it that way.

I’ve gone to the Gemological Institute in Santa Monica, but the main training that I have is actually dealing in the business. I never went to college, but I know I’m doing better than 98% of the guys who did. You just become real competent by doing things, not by reading about them. I don’t have any certificates to hang on the wall, but I’m very professional.

A lot of our jewelry is, well, “used” is the actual term but “pre-owned” is the nice way to say it. . . . If I hear of something, that so-and-so has the lowest prices, I’ll investigate it. I’ll go there and check it out. I’ve sent money back after we’ve made a deal if I thought someone paid too much.

I buy back stuff all the time. Usually I pay 70% or 80%, sometimes 100% for watches. Swiss watches appreciate really fast--it’s staggering how fast they go up. The Swiss companies don’t compromise. If costs go up, they raise the prices but they keep the quality the same. Swiss watches like Rolex and Piaget sell really well in San Diego. Any town that has some disposable income, people are going to buy watches. It’s a status symbol that they can wear and enjoy every day. You can’t take a Mercedes into a restaurant, and a Porsche is hard to hang on the wrist. I tell people you’re not really spending $4,000 on this watch, because if you can sell it tomorrow for $3,000, you’ve only spent $1,000 on the watch. If after two years you can sell it for four, then you haven’t spent anything on the watch. And if you sell it for $5,000, then you’ve made money. There’s nothing in retail that does that, except maybe diamonds. It’s probably the sleeper in the investment world. When you buy carpet, clothing, drapes, stereos--all those things are a 100% net loss the day you take delivery. You’ve spent that money and the money is gone.