5 Predictions for the Tucson Gem Shows

“Many retailers are starting to catch onto this newer wave of market demand and stocking at least a few pieces that they can show to this profitable market segment,” gemstone cutter John Dyer said.

3. And so will sapphires.

Sapphires have been the stars of many a trade show for years now, being exhibited and sold by many attendees at last year’s Tucson shows and during the Las Vegas market week as well.

The classic blue remains a top gemstone to leverage for the colored bridal trend mentioned above, but people are loving more and more the fancy colored options the stone offers.

Jeremy Hakimi of Colorline Inc. said they are seeing a lot of demand for “bread-and-butter” goods such as sapphires in the 1- to 5-carat range, especially fine quality merchandise that is well cut and eye clean.  

Paul Dragone of Boston Gems said sapphire has been one of his company’s two bestsellers throughout the past year (the other being moonstone) and said customers have asked for the stone in all colors, including padparadscha and those from Montana, and he expects that to carry through Tucson as well.

Sapphires originating from a new source in Madagascar discovered last fall are showing up in the market with decent cuts, according to Watt, which should help with the lack of production from Sri Lanka.

“Hopefully, this might take (away) some of the upward pressure on prices for blue sapphire that the market has been experiencing over the past five years,” Watt said, adding that the weakening of the Chinese market also should help lower prices.

Other gems dealers said are getting a lot of love are tourmaline, spinel and garnets of all colors.

4. Burmese rubies might not be prevalent yet.

Though the ban was lifted in October, there might not be an influx of rubies into the U.S. market for the Tucson gem shows.

“Even though the ban has been lifted, prices remain very strong as there is currently very little mining and production,” Colorline’s Hakimi said.

He added that he does think there will be a lot of Mozambique rubies in Tucson, however, which can rival the qualities of fine Burmese material and in many cases, offer a better price point.

Watt, too, said he doesn’t think the amount of Burmese rubies on the market will be significantly different in Tucson though there will be, of course, a few big Burmese companies in Tucson and it’s likely that big retailers and manufacturers will be actively buying for the first time in years.

When news that the ban was being lifted was announced in the fall, American Gem Trade Association President and CEO Doug Hucker said much of the same, telling National Jeweler at the tim that he didn’t think there would be sudden influx of Burmese rubies into the U.S. market.

“This is a very strong relationship business,” he said, noting that many people who moved on from Burmese rubies once the ban was enacted likely would have to take some time to re-establish their relationships at the source.

Tucson could be the perfect opportunity to do that, though, and it remains to be seen how much business surrounding the stone will be had.

5. There will be a focus on cut and quality.

After all, buyers are coming to Tucson to find “special and inspirational items” that evoke an emotional response, as gemstone dealer James Alger says.
 
Dyer reiterated the thought, saying that, “More important than the exact color or material quality is what stands out.”

He added that recently the market has been showing a preference for a slightly smaller gem if it is of better quality.

Along the same lines, “special” or unique gems continue to sell faster than larger and less expensive (per carat) gems that don’t stand out.

In addition to shapes, the cutting quality has become even more of a factor to buyers, Dyer said, with more people educating themselves about the difference that a good cut can make, and looking for those that best show off the gem.

For Bear Essentials, Williams said the cushion cuts have continued to be in demand while ovals and especially trillions have slowed down. Requests have picked up for pear and marquise cuts.

The company also is seeing an increased demand for untreated stones, noting that consumers increasingly do their own research on the internet to know what they want.

“This is also an area we have long focused on, as we appreciate the rarity of all natural gems and have a lab that is equipped to test for all treatments,” she said. “I don’t recommend unheated gems for most calls, but they have appreciated more than comparable heated stones and promise to continue with strong demand from the more discerning end of the market.”