Editor’s Note
This article highlights the significant appreciation of Zambian emeralds as an alternative investment, based on a collector’s personal experience. While such returns can be compelling, we remind readers that gemstone investment carries inherent risks related to valuation, liquidity, and market volatility. Always conduct thorough research and seek professional advice.
This is what colored gemstone enthusiast Xiao Ke told China News Service’s Jwview. In early 2022, Xiao Ke purchased these Zambian emeralds through wholesale lots (where high and low-quality stones are bundled, leaving buyers no choice), with an average weight of over 2 carats, some reaching 3 carats, at an average price of over 9,000 yuan per carat.
Xiao Ke explained that if buying wholesale lots now, the average price per carat has risen to 18,000-19,000 yuan. Among them, 3 or 4 emeralds with better quality have seen their price per carat rise to 35,000-40,000 yuan.
Colored gemstones refer to all gemstones except jadeite and nephrite. Their most distinctive feature is their natural colors, spanning red, orange, yellow, green, cyan, blue, purple, etc. The most common colored gemstones include crystal, agate, tourmaline, and amber. Precious colored gemstones like ruby, sapphire, emerald, and chrysoberyl are ranked alongside diamond as the world’s five major rare gemstones.
According to market research by the China Gems & Jade Exchange (Beijing) Fund Management Co., Ltd. (CGJE Fund), in the first half of 2023, prices for large-carat or relatively rare gemstones surged by 100% to 150%. The average price per carat for precious gemstones like ruby and sapphire increased by about 30%, reaching between 20,000 and 30,000 yuan. Prices for niche categories like spessartite garnet, aquamarine, and morganite rose by 10% to 30%, with varieties like chrome tourmaline and “Jedi” spinel also gaining more consumer favor.
Ms. Song, head of Yingbao Jadeite & Jewelry, told Jwview. Prices for ruby, emerald, and sapphire have been rising continuously, with ruby prices increasing more than sapphire. The price of aquamarine has risen 2 to 3 times in the past two years.
Ms. Song believes that the higher the price of colored gemstones rises, the more people buy them. She analyzes that, on one hand, the scarcer good items are, the more demand exceeds supply. On the other hand, high-quality colored gemstones are also symbols of status and position, highly sought after.
Post-95s colored gemstone enthusiast Wenwen is a fan of lower-priced colored gemstones.
In 2021, after seeing related posts about colored gemstones on social media, Wenwen started getting into colored gemstones. Wenwen said: “Many small-carat stones with good physical properties are actually not expensive. You can buy very good colored gemstone rough stones for around a hundred yuan. Then buying a corresponding finished silver setting is also very cheap.”
Compared to Wenwen, another enthusiast, Zhang Qi, invests more in colored gemstones. Although abroad, Zhang Qi still occasionally purchases colored gemstones from domestic e-commerce platforms, from initial purchases of a few hundred or thousand yuan to a cumulative consumption of nearly 100,000 yuan now.
Zhang Qi said with a smile.
What are the reasons behind the rising prices of colored gemstones?
Sha Nali, Deputy Secretary-General of the China Gems & Jade Exchange Association and Executive Director of CGJE Fund, told Jwview.
Simultaneously, Sha Nali noted that after years of market promotion and cultivation, consumer awareness of colored gemstones has significantly improved. Particularly, the younger generation of consumers has begun pursuing expressions of individuality and fashion. The rich colors and diverse categories of colored gemstones have become new favorites of designers and fashion influencers. Therefore, the rise in colored gemstone consumption is one manifestation of the diversification of jewelry consumption, with its market foundation. “Of course, excessively rapid price increases in colored gemstones will inevitably impact the purchasing power of ordinary consumers to some extent, and we also need to maintain a rational perspective.”
Regarding the price increase of colored gemstones, Zhang Qi said she would continue buying within her means. However, she does not primarily value their investment worth; it’s more about adding some fun to ordinary life. Although she has spent a sum of money, compared to those who truly “play” with gemstones, her level is not high enough. Some precious gems like rubies and emeralds have more investment value, but as an ordinary worker, it’s still difficult to spend large amounts of money to purchase them.
A jewelry appraiser surnamed Xiao from Zhongshoujian (Beijing) Jewelry Testing Center Co., Ltd., with 9 years of experience in the jewelry industry, told Jwview.
In the view of the above-mentioned appraiser, the rise in colored gemstone prices is due, on one hand, to severe global inflation. Colored gemstones need to be seen in person to judge their price. Some colored gemstones settled in US dollars have their sources concentrated abroad, with severely lagging price updates, causing domestic goods not to align with foreign prices. On the other hand, in recent years, consumption trends have leaned towards younger demographics. Colored gemstones are highly sought after, coupled with the fact that large-grained gemstones are almost priced but not readily available (someone is consuming them), directly driving up market prices.
The appraiser also mentioned that the origins of colored gemstones are mostly in unstable regions, leading to small output and difficulty in mineral production. Additionally, the annual output of high-quality raw materials is almost fixed, making raw material production a challenge. The low output of high-end gemstones, combined with many sellers holding back from selling, exacerbates supply shortages. Furthermore, sellers buying colored gemstones from each other in the market creates internal price stacking.
Discussing the investment value and appreciation potential of colored gemstones, Sha Nali stated,
Sha Nali further analyzed that from the demand side, with the gradual recovery of the global economy, the improvement in consumers’ demand for jewelry quality and personalization, and the sustained high enthusiasm for colored gemstone investment, the demand for colored gemstones may continue to grow. However, if prices rise too fast, it may suppress the purchasing willingness of some consumers, putting pressure on price increases. Overall, the future development trend of colored gemstone prices may continue to rise, but the growth rate may slow down, and the market will tend to become more rational. (Interviewees Zhang Qi, Xiao Ke, and Wenwen in the article are pseudonyms.)
