Sourcing

Live from Tucson: 9 Gemstone Market Updates

SourcingFeb 03, 2017

Live from Tucson: 9 Gemstone Market Updates

Richard Drucker tackled trends, memo and grading reports for colored gemstones in a seminar at AGTA GemFair.

20161201_Oscar-Heyman.jpg
Blue stones, like the tanzanite seen in this Oscar Heyman ring, continue to be strong sellers for many gemstone dealers, according to GemWorld’s Richard Drucker.

Tucson, Ariz.--There’s no better time or place to talk about what’s happening in the gemstone market than in Tucson when the city’s playing host to the annual gem shows.

On Thursday morning, GemWorld International’s Richard Drucker spoke at the AGTA GemFair, summarizing his conversations with gemstone dealers throughout the year regarding supply, demand and pricing trends, and some of the biggest issues facing the market right now.

Here are some highlights from his seminar.

1. More business closings. One of the major stories of 2016 concerned the growing number of businesses in the industry that shut down. The Jewelers Board of Trade’s recently released full-year numbers showed that 1,669 jewelry businesses ceased operations during the year, which is a 50 percent jump from the prior year.

Struggles with garnering enough business to stay afloat and retirement without successors both continue to plague the industry, Drucker said.

However, this also means that with less competition, there’s the possibility of a better business outlook for gemstone dealers and retailers still in the game, he added.

2. Over-reliance on memo. The memorandum issue is one that’s long has been discussed in terms of the designer-retailer relationship, but it’s become a concern in the gemstone world as well, with retailers asking for gemstones on memo.

In the case of the gemstone dealer, who has “taken all the risk” in buying the rough or polished stones and added them to their inventory, Drucker said, he or she is now selling direct to consumers more often so that money isn’t tied up in memo goods.

“Dealers, at some point, are forced to find an alternative on their own,” he said.

3. Last year was slow to start but finished strong. Many of the gemstone dealers with which GemWorld spoke said that last year was fairly weak until after the election when buyers were happy to start buying again, leading to a very strong November-December period.

Dealers also said that where the past three to four years had been fairly slow, it seemed like the gem market finally was seeing some growth again amid a resurgence in interest in color.

4. The two-tier market continues. Repeating a trend Drucker mentioned at last year’s Tucson show--and which many in the trade have echoed since then--both the high end and the lower end are doing well while the middle tier continues to be squeezed.

To
reiterate, Drucker noted that some gem dealers told him about selling stones over $100,000, and also pointed out that there have been some gems setting records at auction recently.

5. The continued popularity of blue gemstones and colored bridal. For anyone who was wondering, the high demand for blue gemstones won’t be going away any time soon.

While blue sapphires seem to be the king, the trend is carrying through to gems of all types: tanzanite, zircon, aquamarine and tourmaline.

And the mention of color in bridal came as no surprise, as that trend has been strong for a couple of years now. But, Drucker pointed out at the seminar that many of the rings and stones that companies have been selling for the category also could simply be fashion jewelry as well, which means that leveraging this trend could just require a rebranding from some.

6. The increasing popularity of unheated gems, better cuts, big and bold gems, and responsibly sourced stones. Stones with natural and rare beauty are doing well, and quality cutting is coming to the forefront.

Meanwhile, responsible sourcing is “becoming a big topic, and you will hear more about it,” Drucker said.

According to a recent Nielsen survey, 12 percent of baby boomers and 26 percent of Generation Xers care about it while more than half of millennials are concerned with ethical sourcing.

Earlier this week, the Jewelry Industry Summit was held in Tucson, and the AGTA also announced that a number of industry organizations--including the International Colored Gemstone Association and India’s Gem & Jewellery Export Promotion Council, among a few others--were stepping in to help with its silicosis abatement project.


A 5.17-carat Burmese ruby from Omi Gems

7. The “big three” actually are the No. 1, No. 2 and No. 3 sellers for many dealers these days. Sapphires and fancy colored sapphires are on fire, and rubies are benefitting from the increased supply and acceptance of the material from Mozambique. Emeralds are once again seeing a resurgence as price and supply remains stable and the green stone benefits from increased promotion from Gemfields.

When it comes to sapphire supply and price, some dealers said they were seeing strong supply and lower prices, while some said there were shortages and higher prices. What that issue boils down to is quality: When it came to fine stones, prices were going up.

Production of rubies, meanwhile, used to be around 20 percent of that of sapphires but that gap is rapidly closing, Drucker reported. At the same time, there’s “no indication that demand (of average quality or lower) has risen to keep up with the supply.”

As gem dealers have told National Jeweler before, despite the lifting of the ban in Burma, there isn’t likely to be an influx of material into the U.S. market.

When it comes to emeralds, prices are expected to rise, but it’s likely production will too.

In Colombia, Muzo’s output will go up, Drucker said, now that its infrastructure has been established.

He also noted that a new source of emeralds from Ethiopia has been confirmed, though they haven’t yet seen the material and don’t know much about it.

8. Apart from the “big three,” there are a number of other gemstones doing well. According to the gemstone dealers whom GemWorld surveyed, these include spinel, garnet (especially tsavorite), peridot, rhodolite garnet, and rare and different gems.

“How are you going to set yourself apart if you don’t sell something different?” Drucker asked.

9. Colored stone lab reports concern some dealers. Drucker said that every top dealer he spoke with, except one, expressed dislike and concern about lab reports but noted that they felt like they had to use them.

A few things in particular popped up in this section of the seminar, two of which were nomenclature and origin.

In regards to the first, issues arise for some in the colored stone market when it comes to a lack of consistency and codification in naming standards from lab to lab.

With the latter, the reliance on an identification of place of origin is having a big effect on prices. And as so many new sources pop up, there are risks of inconsistencies.
Brecken Branstratoris the senior editor, gemstones at National Jeweler, covering sourcing, pricing and other developments in the colored stone sector.

The Latest

Jemma Wynne Forme Toggle Necklace
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ Necklace

Anne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”

September Hong Kong jewelry show
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong Show

Jewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.

Bulgari Celestial Mosaic spinel necklace
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’

Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Mark and Candy Udell
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime Achievement

Mark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.

Weekly QuizJul 25, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Francesca Villa Fantasia Collection The Crab Pendant, The Mermaid Pendant, Keep Dancing Seahorse Pendant, Keep Dancing Ladybug Pendant, Secret Dreams Pendant, The Puffer Fish Takes Flight Pendant
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio Characters

The “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.

Breitling’s special Eagles Super Bowl watch on gold bracelet
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles

The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Stock image of crime scene tape
CrimeJul 23, 2025
JSA Warns of Violent String of Smash-and-Grabs in California

JSA has received reports of mobs swarming jewelry stores, driving cars into the storefront or smashing through the windows.

Silvia Furmanovich Kasmir Collection Carnelian Bracelet and Sketch
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern India

The “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.

Bench jeweler holding a bracelet and a tool
IndependentsJul 23, 2025
Montreal’s Ecksand Eyes Move to SoHo

Creative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.

LAFD Fire Station 44 and Fire Station 16
IndependentsJul 23, 2025
IJO Raises Nearly $37K for LA Fire Relief

Two Los Angeles Fire Department stations plan to use the donations to upgrade their equipment and tools.

A Vanitas by Hannah Martin and Guy Berryman Sothebys
CollectionsJul 22, 2025
Jewelry With a Rock ‘n’ Roll Aesthetic Heads to Sotheby’s London

Next week, the auction house will kick off a selling exhibition of jewelry by British artist Hannah Martin and Coldplay’s Guy Berryman.

Emmanuel Raheb
ColumnistsJul 22, 2025
The Gifting Gap: How to Market Jewelry Beyond the Holidays

Emmanuel Raheb shares the top five gifting moments outside of major holidays that jewelers should build marketing campaigns around.

NY Now
Events & AwardsJul 22, 2025
NY Now’s Summer Market Returns in August

The wholesale trade show’s Luxury Lifestyle section will showcase established and emerging jewelry designers.

Jeweler setting a diamond into a ring
MajorsJul 21, 2025
Rio Grande Expands Personalization Offerings

As demand for custom jewelry grows, the company is expanding its services to support retailers.

National Associate of Jewelry Appraisers Logo
Events & AwardsJul 21, 2025
NAJA’s 2025 ‘Ace It’ Conference To Go Virtual

The mid-year conference for jewelry and watch appraisers is slated for Aug. 9 to 10 on Zoom.

Jacquie Aiche graduated turquoise beaded necklace
TrendsJul 21, 2025
Amanda’s Style File: Graduated With Honors

Graduated stones make for elevated tennis-style pieces and dramatic statement necklaces.

24th Gem Awards Show Logo
Events & AwardsJul 21, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

Lewis Heyman
MajorsJul 18, 2025
Lewis Heyman on Sourcing Gemstones, Post-Retirement Plans

He retired last month after 28 years traveling the world to source the very best gemstones for his family’s jewelry business, Oscar Heyman.

CCWW Designs Multiple Shell Charm Necklace
TrendsJul 18, 2025
Piece of the Week: CCWW Designs’ Shell Charm Necklace

The charm necklace features six nautical charms of shells and coral that founder Christina Puchi collected on Florida’s beaches.

The Plumb Club board members
MajorsJul 18, 2025
Plumb Club Elects New Board Members

The organization elected its youngest vice president as it looks to draw in fresh talent.

Jewelry industry veterans Brad Campbell and John Liebler
TechnologyJul 18, 2025
Brad Campbell, John Liebler Join Clientbook’s Executive Team

Campbell joins the company as vice president of business development while Liebler is the new vice president of operations.

Silver, Gold, and Bronze Medals for Italy Olympic Winter Games
CollectionsJul 17, 2025
2026 Winter Olympic Medal Design Symbolizes Unity

The medals feature a split-texture design highlighting the Games’ first time being hosted by two cities and the athletes’ journeys.

vimeo screenshot.png
Supplier BulletinJul 17, 2025
The INSTORE Jewelry Show 2025: Your Holiday Preparations, All Wrapped Up!

Sponsored by The INSTORE Jewelry Show 2025

Guinness
SurveysJul 17, 2025
The Most Recommended Brands in the World, According to YouGov

Globally, travel and transportation brands reigned, while in the U.S., alcoholic beverage companies and a lingerie brand took the top spots.

Gina Ferranti
IndependentsJul 17, 2025
Gina Ferranti of GiGi Ferranti Jewelry Dies at 59

The Brooklyn-based jewelry designer is remembered as a true artist and a rare talent.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy