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

Stock image of people shopping in a mall
SurveysApr 03, 2025
2025 Retail Sales to Grow More Slowly Amid ‘Uncertainty,’ Says NRF

The National Retail Federation expects retail sales growth to return to pre-pandemic levels as consumers continue to face inflation.

Tallulah Willis’ Engagement Ring
TrendsApr 03, 2025
Tallulah Willis Imbues Antique Engagement Ring With Magic

The 4-carat, old mine brilliant-cut diamond engagement ring was co-designed by Willis and New York City-based brand Karina Noel.

Buccellati Naturalia exhibition
CollectionsApr 03, 2025
Buccellati to Open Immersive Exhibition in Milan

The multisensory experience, open April 8-13, will feature the brand’s silver creations among dream-like scenes of natural landscapes.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Jewelers of America logo
Policies & IssuesApr 03, 2025
Jewelers of America to Hold Webinar on Tariffs

The virtual event will take place April 7 at 3 p.m.

Weekly QuizApr 03, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Bea Bongiasca Animali Tarallo Collection Royal Blue Tang Fish “Dory”
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a Zoo

The pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.

Neiman Marcus Downtown Dallas store
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For Now

Parent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Punchmark
Events & AwardsApr 02, 2025
Punchmark to Host Client Workshop

The educational event will take place in Charlotte, North Carolina, this May.

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

Bailey’s Fine Jewelry storefront
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent Jeweler

The family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.

Bulova 150 Art Deco Miss America Watch, 150 Art Deco Pocket Watch
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco Watches

The “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.

×

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