Q2 2024 Market Analysis Report for Southern Red Agate (Gannan Red)

Q2 2024 Market Analysis Report for Southern Red Agate (Gannan Red)

I. Market Overview and Price Data

In Q2 2024, the Southern Red Agate market generally showed a steady upward trend, with Gannan Red, as a prominent variety of Southern Red Agate, performing particularly well. This quarter, prices for both Gannan Red rough stones and finished products increased, and market activity was high.

Rough Stone Prices:
* Common Grade (lighter color, more fissures): Price range of 100-300 CNY/gram, an increase of approximately 5-8% quarter-on-quarter.
* Medium Grade (uniform color, minor fissures): Price range of 300-800 CNY/gram, an increase of approximately 8-12% quarter-on-quarter.
* Premium Grade (persimmon red, cherry red, crimson, few to no fissures): Price range of 800-3000 CNY/gram, with some exceptional pieces exceeding 5000 CNY/gram, an increase of approximately 10-15% quarter-on-quarter.

Finished Product Prices (taking bracelets as an example):
* Common Grade Bracelets (10mm beads, average color): Price range of 500-1500 CNY/strand, an increase of 3-5% quarter-on-quarter.
* Mid-to-High Grade Bracelets (10mm beads, persimmon red/cherry red, minor fissures): Price range of 2000-8000 CNY/strand, an increase of 6-10% quarter-on-quarter.
* Collector Grade Bracelets (10mm beads, full color, full body, no fissures, no impurities): Price range of 10000-50000 CNY/strand, or even higher, an increase of 8-15% quarter-on-quarter.

Trading Volume:
Total trading volume for Gannan Red in this quarter increased by approximately 15-20% quarter-on-quarter. Among these, online trading platforms (such as Taobao, JD.com, Weipaitang, etc.) continued to expand their share, accounting for over 60% of the total trading volume, indicating the growing importance of online channels in jade transactions.

II. Market Trend Analysis and Forecast

• Scarcity Drives Price Increase: High-quality Gannan Red ore materials are becoming increasingly scarce, especially for top-tier colors like persimmon red and cherry red. Mining these materials is challenging, and their output is limited. This scarcity is a core factor supporting the continuous price increase.


• Consumption Upgrade and Aesthetic Enhancement: With the improvement of the national economy, consumer demand for high-quality, culturally rich jade and gemstones is growing. Gannan Red's unique warm texture and auspicious colors make it highly sought after in the market.


• Highlighting Cultural Value and Investment Attributes: As an important part of traditional Chinese jade culture, the cultural and collection value of Southern Red Agate is gradually being recognized by the market. Amid inflation expectations, jade with potential for value preservation and appreciation has become a preferred choice for some investors.


• Future Forecast: It is expected that Gannan Red market prices will maintain a steady upward trend in the next six months to one year, with premium and collector-grade pieces seeing more significant increases. Prices for common grade materials may stabilize but still have room for slight increases influenced by overall market sentiment.

III. Price Comparison of Different Quality Grades

| Quality Grade | Color Characteristics | Fissure Condition | Texture | Rough Stone Price (CNY/gram) | Finished Product Price (10mm bracelet, CNY/strand) |
| :------------ | :-------------------- | :---------------- | :------ | :--------------------------- | :---------------------------------- |
| Common | Lighter, uneven | More, obvious | Coarser | 100-300 | 500-1500 |
| Medium | Uniform, slight color difference | Minor, not obvious | Decent | 300-800 | 2000-8000 |
| Premium | Persimmon red, cherry red | Very few or none | Warm, delicate | 800-3000 | 10000-50000 |
| Collector | Crimson, full color, full body | No fissures, no impurities | Strong gelatinous feel | 3000-5000+ | 50000+ |

IV. Investment Advice

• Prioritize Premium and Collector Grades: For investors seeking value preservation and appreciation, it is recommended to focus on Gannan Red of pure color, delicate texture, and free of fissures and impurities, such as persimmon red, cherry red, and crimson. These products not only possess higher artistic value but also have stronger resistance to depreciation and appreciation potential due to their scarcity.


• Focus on Rough Stone Quality: Investing in rough stones requires certain identification skills. It is advisable to choose high-quality rough stones of moderate size, uniform color, few fissures, and warm texture, avoiding blind pursuit of high prices.


• Beware of Market Risks: Although the Gannan Red market has promising prospects, it is still necessary to be vigilant against market speculation and counterfeit products. When purchasing, be sure to choose reputable merchants and request authoritative appraisal certificates.


• Diversified Allocation: For ordinary consumers, mid-grade Gannan Red jewelry can be chosen according to their budget, which can meet wearing needs and also have certain collection value. For professional investors, Gannan Red can be considered as part of asset allocation, combined with other investment products.


• Long-Term Holding Strategy: Jade investment is a long-term investment, and short-term fluctuations should not be overly concerned. Investors are advised to adopt a long-term holding strategy to enjoy the value growth brought by its scarcity.

Summary: The Gannan Red market performed strongly in Q2 2024, with prices rising steadily and trading volume active. Driven by scarcity, consumption upgrades, and cultural value, its future market prospects remain optimistic. Investors should analyze rationally, choose carefully, and seize investment opportunities.