FinancialsMay 17, 2024
Richemont Appoints Van Cleef & Arpels’ Nicolas Bos as New CEOThe announcement coincided with its full-year results, with growth driven by its jewelry brands.
Events & AwardsFeb 02, 2018
Live From Tucson: 7 Updates on the Gemstone Market
Two executives from GemWorld International talked pricing, what’s selling and the biggest issues facing the sector today.
Tucson, Ariz.--There’s no better place than the Tucson gem shows to get an idea of where the market is today.
Thursday morning, GemWorld International President Richard Drucker and Vice President and Research Director Stuart Robertson did just that at AGTA GemFair.
They outlined a number of market developments and trends they’ve noticed, from what’s selling to the levels of the supply and demand for a variety of colored gemstones.
Here’s what they had to say.
1. The story of the two-level market continues.
Activity in the gemstone sector for the past few years has largely been at the high end and the low end, with very little activity in the middle, and that hasn’t changed, Robertson said.
The higher end is seeing strong demand, something a number of exhibitors told National Jeweler before the shows, because of tight supply.
The lower end has gotten “overproduced” and so prices are suffering, Robertson said, adding that sales are OK but are moving to internet sellers and other non-traditional methods of selling.
The middle tier, meanwhile, is “average at best” in terms of demand. This historically has been the “bread-and-butter” for the gemstone industry, and as long as this continues, the industry will likely continue to see the trend of more traditional stores closing faster than they’re replaced.
2. Reliance on memo is an issue.
More retailers are relying on memo to stock their stores, but the wholesale side of the trade cannot support themselves in that format or source product this way, Robertson said.
If the trend of over-reliance on memo continues and the wholesale side is expected to finance the retail side without any additional compensation for it, the market will narrow and the retail side will get hurt the most, he added.
3. Ruby and sapphire prices are declining.
With the exception of the higher-grade material, ruby prices are down, which is due in part with the increase in supply of material from Mozambique.
Sapphire prices also are down, for the most part; there’s a slight increase in price, between 5 and 10 percent, in Burmese unenhanced sapphires. Sapphire production is higher as more sources have come online.
4. Emeralds are poised for change and activity.
GemGuide has predicted higher demand for emeralds, not only because the green gemstone has seen the smallest amount of price increase among the “big three” in the past decade, presenting the
most opportunity for growth, but also because the market now better understand enhancements, especially as the labs have been educating about how they are describing treatments and what each means.
Drucker said production of Colombian emeralds appears to be consistent, and Zambian production is good and accessible to the market while the supply of Brazilian material is reportedly low.
Ethiopia, meanwhile, is poised to be an important source for emeralds, Drucker said.
U.S. dealers are focusing on the emeralds from Ethiopia that have little to no enhancement.
Colombian emeralds, meanwhile, are trading at prices 20 to 25 percent below those of Zambian emeralds right now.
5. There’s growth in unique stones.
Drucker said they’re seeing growth in demand for “non-classic gems” (those outside sapphire, emerald and ruby) and enhanced lapidary materials. He noted that at the show, the busiest booths seemed to be those that were selling unusual materials, gemstones such as chalcedony, sugilite and Sonora chrysocolla.
6. There’s also growth among many other well-known gems.
Here are the other gems Drucker said were doing well: garnet, which has become popular in almost all of its colors and benefits from being a color substitution for a number of more expensive gems; aquamarine; morganite; tourmaline; zircon; spinel; and American-sourced gems.
7. Treatments remain a major challenge for the market.
Robertson said today there are, generally speaking, more treatments and less disclosure.
He added that the issue doesn’t just involve people not knowing exactly what’s being done to the material, but also not knowing how to relay it.
“What we’re seeing is a return to using codes on invoices, codes on lab reports, as opposed to spelling out the actual details of a treatment, and that’s problematic.”
The codes developed to talk about treatment disclosure were never meant to be used on lab reports or retail receipts for a consumer. Now, the consumers don’t have any real way to make sense of those codes.
Drucker said production of Colombian emeralds appears to be consistent, and Zambian production is good and accessible to the market while the supply of Brazilian material is reportedly low.
Ethiopia, meanwhile, is poised to be an important source for emeralds, Drucker said.
RELATED CONTENT: 5 Things to Know About Ethiopian EmeraldsRobertson added that there’s been a lot of buzz about Ethiopian emeralds and they expect the stones to be one of the more popular gems at the show this year. Supply is good and pricing is attractive, though Robertson said it appears many of the dealers offering it still are trying to feel out the market to see where it settles.
U.S. dealers are focusing on the emeralds from Ethiopia that have little to no enhancement.
Colombian emeralds, meanwhile, are trading at prices 20 to 25 percent below those of Zambian emeralds right now.
5. There’s growth in unique stones.
Drucker said they’re seeing growth in demand for “non-classic gems” (those outside sapphire, emerald and ruby) and enhanced lapidary materials. He noted that at the show, the busiest booths seemed to be those that were selling unusual materials, gemstones such as chalcedony, sugilite and Sonora chrysocolla.
6. There’s also growth among many other well-known gems.
Here are the other gems Drucker said were doing well: garnet, which has become popular in almost all of its colors and benefits from being a color substitution for a number of more expensive gems; aquamarine; morganite; tourmaline; zircon; spinel; and American-sourced gems.
7. Treatments remain a major challenge for the market.
Robertson said today there are, generally speaking, more treatments and less disclosure.
He added that the issue doesn’t just involve people not knowing exactly what’s being done to the material, but also not knowing how to relay it.
“What we’re seeing is a return to using codes on invoices, codes on lab reports, as opposed to spelling out the actual details of a treatment, and that’s problematic.”
The codes developed to talk about treatment disclosure were never meant to be used on lab reports or retail receipts for a consumer. Now, the consumers don’t have any real way to make sense of those codes.
More on Events & Awards
The Latest
FinancialsMay 17, 2024
Watches of Switzerland’s Fiscal-Year Sales Flat Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Recorded WebinarsMay 17, 2024
Watch: Preparing for Trade Show SuccessJewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Brought to you by
Record Gold Prices Have Consumers Undeterred. Here’s Why.Despite the rising prices, consumers continue to seek out the precious metal.
AuctionsMay 17, 2024
Piece of the Week: Cartier’s Ring-Tailed LemurThis little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Weekly QuizMay 16, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
AuctionsMay 16, 2024
Christie’s Holds 2 Sales Despite CyberattackThough its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
AuctionsMay 16, 2024
Sotheby’s Withdraws 101-Carat Yellow Diamond from AuctionDespite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
ColumnistsMay 16, 2024
The PR Adviser: What the Designer Should’ve DoneLilian Raji gives advice to designers on how to make the most of great publicity opportunities.
SourcingMay 16, 2024
Lucapa to Shed Stake in Lesotho Diamond Mine The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
ColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire BrandsWhy do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
AuctionsMay 15, 2024
Red Diamond Breaks Records at Phillips GenevaThe “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
IndependentsMay 15, 2024
David Mann Jewelers in Upstate NY to Close After 35 YearsOwner David Mann is heading into retirement.
FinancialsMay 15, 2024
Brilliant Earth’s Sales Fall Flat in Q1 While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
SourcingMay 14, 2024
Anglo American Confirms It Is Looking to Sell De Beers The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
AuctionsMay 14, 2024
2 Huge Yellow Diamonds Are Heading to AuctionChristie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
MajorsMay 14, 2024
Platinum Born Taps ‘Born Leaders’ for New CampaignThe ad aims to position platinum jewelry as ideal for everyday wear.
GradingMay 14, 2024
Instappraise Adds Trifold Brochure to Appraisal OfferingsRetailers can customize and print the appraisal brochures from their store.
Lab-GrownMay 13, 2024
Lab-Grown Diamond Brand Lightbox Cuts Prices by 25 to 40%The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
TechnologyMay 13, 2024
Christie’s Website Brought Down by Hackers, Watch Auction Postponed The site has been down since Thursday evening, just ahead of its spring auctions.
AuctionsMay 13, 2024
Madeleine Albright’s Jewelry, Pins a White-Glove Sale at Freeman’s | HindmanThe late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
IndependentsMay 13, 2024
Zachary’s Jewelers Names Mother’s Day Jewelry Contest WinnersThree fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
MajorsMay 09, 2024
Watches of Switzerland Pays $130M for Roberto Coin Inc.The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
IndependentsMay 09, 2024
Kyle Edward Fine Jewelry to Close Salisbury StoreThe company’s Easton location will remain open.
