Colored stones are having a moment. That’s the key takeaway for many vendors exhibiting at the leading annual fine gem and jewelry trade shows early February in Tucson, Arizona.
“Colored stones are finally having their moment,” cheers Raja Shah, owner of Color First. Attracting the most interest this year for the Tampa, Florida-based gem wholesaler were natural, unheated fancy sapphires from Madagascar in organic shapes, blue-green tourmalines, and rare UV garnets (color change and Malaya, from several locations in East Africa, with super fluorescence under UV light).
The atmosphere was upbeat and bustling with activity, particularly on the first two days the neighboring gem trade shows were open.
Traffic on the sales floor at the American Gem Trade Association GemFair at the Tucson Convention Center was up more than 6% over 2023, a record year, Kimberly Collins, AGTA board president and owner of the San Francisco-based Kimberly Collins Colored Gems shared mid show. Many jewelers had a solid Christmas and needed to restock their supply. “We sold out of every case, but teal sapphire was by far the hottest thing for us at the show.”
People are recognizing and buying fine gems and jewels as family heirlooms, for engagements and weddings, and because of their fashion and personal connections finds Collins. “There’s no better time to sell colored stones and cultured pearls. We have a huge opportunity with what’s happening in diamonds. More people are looking to the gem category.”
Shah concurs that more diamond money is coming to the gem business, as the diamond industry continues to navigate through the effects lab-grown diamonds and two wars are having on the diamond market.
“Lab-grown diamonds have taken a 30% to 40% bite out of the natural diamond business,” cited Martin Rapaport, diamond business magnate and chairman of the Rapaport Group in a seminar with AGTA CEO John Ford. “Will it be sustainable, probably for certain market segments. I don’t think the impact for the high end will be. It will probably last another year in the engagement market. But for fashion jewelry it will all go to synthetics.”
Rapaport underscored that “the colored gemstone market is waking up to new opportunities for growth. The younger generations want something different, authentic and unique. The great variety offered by gemstone jewelry is perfect for these new consumers.”
Market Trends Shared
While the colored stone industry worked out synthetics a century ago, the biggest concern today is that gem production is nowhere close to where it was pre-pandemic, Stuart Robertson, president of Gemworld International told a full house of jewelers in a market trends presentation with Brecken Branstrator, editor in chief of the GemGuide.
While small-scale mining is returning, it is still not at capacity, as production and transportation costs continue to rise with inflation. “As expected, demand is soft for lower good to low-end goods pressuring pricing,” shared Robertson, noting that lack of production guarantees higher prices in high-end material. He said prices for fine quality stones are finding support at current levels, motivated by rarity and wealth preservation.
Shah cited prices up 30% to 50% for fine natural colored stones, 10% to 20% for commercial goods. Despite initial sticker shock, he said that jewelers were buying the best for their money.
Branstrator noted that sapphire is the top selling stone in the Western market, and a gem that offers one of the largest palettes in colors. Demand is high for no-heat sapphire, which she said is difficult to source, with the exception of small stones.
Ruby is a specialized market and has been for years, said Branstrator, with the strongest demand currently in the Chinese market. “Sophisticated buyers recognize the rarity of fine ruby. In general though, ruby is now perceived as cost prohibitive. Its price structure the past decade has created the opportunity for color substitution based buying at the mid level market.”
Tourmaline and garnet are reliable sellers that offer a broad range of colors. Garnet in particular has strong name recognition and history. It also is still perceived as affordable, although garnet, like tourmaline, has seen price increases, a direct result of the marketing of sourcing practices, explained Branstrator.
Zircon is hitting the strongest appeal among young designers, Branstrator highlighted, with demand increasing among independent jewelers. She forecast that green would be an important color this year in a variety of gems like tourmaline, garnet, and peridot. She also sees a return to emerald, which is more affordable and available than its other two “Big Three” counterparts.
Kathe Braunwart, jewelry design lead for Columbia Gem House (CGH), shared that fancy greens and teals, as well as bi-color sapphires from Montana have been extremely popular for the Vancouver, Washington-based company, a leading supplier of the material.
“We had about 20 Montana sapphires cut right before the show in 2-to-5-carat sizes, which is large for this material,” explained Braunwart. “We also sold a lot of golden Cortez cultured pearls from Mexico; and moss agate from India is popular in everything from body jewelry to engagement rings.”
Another interesting space to watch in 2024, Branstrator shared, is bespoke cutting. “There’s a growing appreciation for independent cutters, unique cuts, and new cuts for traditional stones.” Braunwart concurs, citing strong demand for unique shapes like kite, hexagonal tablet, and reverse intaglio.
Pearl Prognosis
While Tucson is regarded as a gemstone-focused show, pearls are very much on display. And like other categories in the fine jewelry business, pearl production has not yet rebounded to post pandemic levels, and prices are very high.
Robertson shared that the pearl market in general was the hardest hit during the pandemic. “Pearl prices are very high. Farmers lost entire cultivation cycles and production seasons. We expect it will take three to four years to fully recover.” He mentioned that Paspaley was an exception, as the major Australian South Sea pearl producer was able to make arrangements to continue cultivation on his ship during the pandemic.
Fran Mastoloni, a partner at Mastoloni Pearls in New York City described the pearl world as in turmoil. “Undeniably, pearls are hot,” he underscored, noting that every color, shape and mix is popular. “Pearls are fun to wear; both causal and formal; and the palette is endless. But there is a pearl shortage out there and COVID is only part of the problem.”
The Chinese have been buying up everything pearls – Akoya, South Sea, and Tahitian, he cited. Pearl prices are up two to three times pre-COVID levels, which Mastoloni said is not sustainable. He shared that last June after the Chinese actress and influencer NiNi posted selfies adorned in beautiful pearl jewelry, the market exploded. In fact, the highly anticipated Robert Wan Tahitian pearl auction scheduled during the September Hong Kong show was cancelled right before it began after one Chinese buyer showed up, and bought everything, 30% over reserve.
Mastoloni advised jewelers to keep an eye on what’s being produced in Chinese nucleated freshwater cultured pearls. He is seeing some fantastic pearls, 14mm to 16mm in size, with absolutely clean skin.
Meeting the Source
Among her five key market trends for 2024, Branstrator noted that more designers and jewelers are traveling to the source to buy.
“The growing trend is to market or develop a gem or location,” Branstrator shared, citing as an example the Cruzeiro tourmaline mine that went mine-to-market during the pandemic. Jewelers were invited to visit its operations in Minas Gerais, Brazil. She advocates firsthand experiences help to contextualize market trends and issues, and assess and vet claims.
Braunwart concurs that her increasingly younger clientele, many who are under the age of 30, come to CGH for ethically sourced material. Robertson gave a shout out to CGH as pioneers in ethical protocols specific to the gem trade, among them source marketing and bringing attention to a gem or location like Montana sapphire and Cortez cultured pearls have done.
Cynthia Pischdotchian, Boston-based custom jeweler for Cynthia Britt, shared that while her focus for 10 years has been on bridal and diamonds, customer requests for color have been growing year after year. In addition to blue sapphire, green and peach sapphires, tsavorite garnet, black opal, and aquamarine are client favorites. Shopping the AGTA GemFair for the first time, she wanted to meet her vendors in person to fill her ever-expanding shopping list for color.
There was definitely a “doer” vibe at the show, described Ken Laughlin, sales for the Alden, New York-based United Precious Metal Refining, of his experience exhibiting at AGTA. “We were busy meeting serious buyers. Custom jewelers were buying solder, silver wire, findings. Retailers were spending money.”
Larry Rodgers, owner of the Morro Bay, California-based Lavish Jewelry Cleaner, an exhibitor at AGTA for seven years, hails the Tucson venue ideal to meet customers that the company does not see at other trade shows. Safe for all gems and metals, Lavish foam, stick and bath cleaning products are a Tucson crowd pleaser, a gem show amenity in the bathrooms at the convention center.
Julia Pullman, marketing coordinator with Brea, California-based Box Brokers Group (BBG), echoed similar sentiments of a busy show and access to new and different customers. With smash-and-grab thieves targeting jewelers, BBG’s new patent-pending SmartPro Display was a favorite. The magnetic display contains security clips with tracking device.
Robertson describes the market as still decompressing from healthy growth during the pandemic. He reminds jewelers that competition from travel, leisure and other experience-based spending is back post pandemic. Branstrator underscores that while it takes extra work, there is added value to have a transparent supply chain.
