Industry Observation:
In the first half of 2024, the global gemstone market demonstrated remarkable resilience amidst a complex and volatile economic environment, particularly in the high-end colored gemstone and jadeite sectors. According to the latest 'Global Gemstone Market Report H1 2024' released by the Global Gemstone Trade Association (GGTA), despite macroeconomic challenges, demand for rare, large-carat, high-quality colored gemstones and top-tier jadeite remained strong, with prices showing steady growth.
The report indicates that the total transaction value of the global gemstone market increased by 4.8% compared to the same period last year, reaching $28.5 billion. The colored gemstone segment performed exceptionally well, growing by 6.2% year-on-year and contributing 45% of the total market value. Prices for top-quality rough and finished products of the 'big three' precious gems – rubies, sapphires, and emeralds – saw significant increases. For instance, the average per-carat price of untreated, pigeon's blood Mozambican rubies rose by 8%, while Colombian emeralds (minor or no oil) increased by 7.5%. Ms. Emilia Rodriguez, Chief Analyst at GGTA, stated in an interview with our publication: “Consumers' pursuit of rarity and value preservation is the core driver behind the continued heating up of the high-end colored gemstone market. We see many high-net-worth individuals viewing top-tier gemstones as crucial tools for hedging against inflation and diversifying investment risks.”
In the Asian market, jadeite continued its strong performance. Auction sales of Burmese A-grade jadeite repeatedly hit new highs in major trading centers like Hong Kong and Singapore. According to Mr. Li Hua, Head of Jewelry for Christie's Asia, at a spring auction held in Hong Kong this May, an imperial green jadeite bangle weighing 58.8 carats fetched HKD 120 million, significantly exceeding its estimated price and setting a new record for similar items in recent years. Mr. Li commented: “The cultural recognition and collecting enthusiasm for top-tier jadeite in mainland China and Southeast Asia are key factors in its robust pricing. Especially for jadeite with excellent translucency, texture, and pure color, its scarcity determines the irreplicability of its value.”
However, not all sub-markets presented an optimistic outlook. The mid-to-low-end gemstone market, particularly regions heavily affected by geopolitical and supply chain fluctuations, performed relatively flatly. The market share of synthetic and treated gemstones increased, but their price growth potential was limited, primarily catering to daily wear and fashion consumption needs.
Regionally, the Asian market remains the epicenter of global gemstone consumption and trade, contributing nearly 60% of the total global market value. Purchasing power in mainland China, India, and the Middle East continues to strengthen. European and North American markets are increasingly focusing on sustainable sourcing and ethical mining, promoting the widespread adoption of 'responsible jewelry' principles.
Looking ahead to the second half of the year, GGTA anticipates steady growth in the global gemstone market, though the pace may slightly moderate. Geopolitical uncertainties, inflationary pressures, and uneven global economic recovery will remain key factors influencing market performance. However, with the gradual recovery of global tourism and the rise of the middle class in emerging markets, demand for mid-to-high-end jewelry is expected to further unleash. Furthermore, the application of digital technologies in gemstone identification, traceability, and sales will bring new growth opportunities to the industry.
In summary, the first half of 2024 saw a 'two-tiered' global gemstone market, where high-end rare gemstones, with their unique value attributes, bucked the trend and became the dominant force, while ordinary gemstones faced more challenges. For industry participants, accurately grasping market demand, focusing on niche segments, and actively embracing technological innovation will be crucial for winning future competition.