Industry Observation: Global Gemstone Market Fluctuates: High-End Jadeite Rises Against the Trend, Colored Gemstones Highly Sought After
In the first half of 2024, the global gemstone market presented a complex and diverse landscape. Amid macro-economic uncertainties and geopolitical risks, some high-end gemstone categories demonstrated remarkable resilience, even rising against the trend, while the mass market faced certain adjustment pressures.
High-End Jadeite: Scarcity Drives Prices Upward
According to the latest 'Global Gemstone Market Report for H1 2024' released by the International Gem & Jewelry Show (IGJS), the price index for high-quality jadeite, especially glass-jadeite and ice-jadeite imperial green, has increased by approximately 8.5% over the past six months. Ms. Shirley Shi, Chairman of Christie's Hong Kong Jewellery Department for Asia, noted in an interview with us: “The scarcity of top-tier jadeite is the core reason for its strong prices. Globally, the supply of rough jadeite capable of reaching collection-grade is increasingly depleted, while purchasing power in Asian markets, particularly mainland China and Southeast Asia, remains robust.”
In May this year, at Sotheby's Hong Kong Spring Auction, a 28.5-carat natural Burmese imperial green jadeite cabochon ring was finally sold for an astonishing HKD 180 million (approximately USD 23 million), far exceeding its pre-sale estimate, setting a new record for similar lots. The buyer is reportedly a private collector from Singapore. This event undoubtedly injected new vitality into the high-end jadeite market.
Colored Gemstones: New Investment Darling, Strong Demand
Beyond jadeite, the colored gemstone market also showed strong growth momentum. Rubies, sapphires, and emeralds, the 'big three' precious stones, continued to lead the market. Among them, pigeon's blood rubies from Mozambique and Myanmar, and cornflower blue sapphires from Kashmir and Sri Lanka, saw particularly significant price increases, with an average rise of 6-7%.
Data from the London Gem Exchange (LGE) indicates that online transactions for colored gemstones increased by 12% year-on-year in the first quarter of 2024. Mr. Mark Johnson, Chief Analyst at LGE, stated: “Investors are seeking diversified asset allocation, and colored gemstones, with their unique charm and scarcity, are becoming a highly attractive investment option. Especially those untreated, highly saturated, and exceptionally clear gemstones are broadly favored by the market for their collection value and investment potential.”
Emerging colored gemstones such as Paraiba Tourmaline and Tsavorite Garnet are also gradually gaining market attention. Although their market share is relatively small, their prices are rising rapidly, with annual increases for some varieties even exceeding 10%.
Diamond Market: Lab-Grown Diamonds Impact, Natural Diamond Market Diversifies
In contrast to the vibrant colored gemstone market, the natural diamond market faces certain challenges. Affected by the global economic slowdown and the rapid development of Lab-Grown Diamonds (LGDs), prices for mid-to-low-end natural diamonds continue to be under pressure. According to Bain & Company's '2024 Global Diamond Industry Report,' LGDs' market share is predicted to expand further in the next five years, especially in the fashion and everyday wear segments.
However, large-carat, high-clarity, and perfectly cut natural fancy colored diamonds and colorless natural diamonds still command strong prices. Ms. Emily Chen, a jewelry specialist at Christie's New York, pointed out: “Consumer perception of the rarity and eternal value of natural diamonds has not changed. The collectible nature and investment value of high-end natural diamonds remain irreplaceable.”
Outlook: Challenges and Opportunities Coexist
Looking ahead to the second half of the year, the global gemstone market will continue to be volatile. Geopolitical conflicts, inflationary pressures, and the growth prospects of major economies will all influence consumer purchasing intent. However, with the rise of the middle class in emerging markets and increased consumer demand for personalized and rare gemstones, the market outlook for high-end and specialty colored gemstones remains broad.
The 'Jade AI' team believes that gemstone industry participants should focus more on supply chain transparency and sustainability, while utilizing digital tools to expand sales channels and strengthen brand building to adapt to changing market demands.