GEMSWORLD 2023

焦点 GEMSWORLD | 11 | 2023 Solid market appetite supported by steady rebound in major economies will bolster the coloured gemstone trade in 2023 amid global challenges, demonstrating the sector’s resilience and stability. According to industry players, gemstone royalties ruby, sapphire and emerald will play a crucial role in business growth, but equally stunning, finer-quality gems such as Paraiba tourmaline, spinel and aquamarine, to name a few, are also expected to contribute to robust demand. Red gemstones are likely to gain more traction in 2023, with the Pantone Color Institute naming Viva Magenta – a shade displaying vivid crimson hues – as colour of the year. A colour that radiates vigour and vibrancy, Viva Magenta is expected to inspire jewellery designs highlighting the beauty of ruby and rubellite as well as red spinel and garnet. Other gems that fall within this colour category are rhodochrosite and red jasper, among others. With sturdy demand, prices are also on the upswing, especially for gemstones that are harder to come by, but buyers do not see this as a deterrent. In fact, gems bearing finer colours and other exceptional qualities will continue to be highly favoured in the market since these are viewed as a great store of value. Year of opportunities According to Clement Sabbagh, president of the International Colored Gemstone Association, 2023 is poised to become a phenomenal year for coloured gemstones. Demand for ruby, sapphire and emerald is growing from strength to strength in major markets like the US, Europe and Asia. Prices too are reliable indicators of growth. Sabbagh said the industry has been seeing high double-digit price increases for premium-quality gemstones over the past two years. Moving forward, prices will sustain this upward trend, especially for superior gems. “Our outlook is positive, with the big three – sapphire, ruby and emerald – leading business recovery,” shared Sabbagh. “The market is more cautious because of macroeconomic uncertainties and fears of recession in 2023, but we remain upbeat about prospects in the gemstone trade.” Besides thebig three, other gemstonesare likely to remain popular in 2023, including spinel; tsavorite; tourmaline in different shades of green, blue and red; Paraiba tourmaline; and aquamarine. These gems had a strong following in 2022 and this trend is expected to continue in 2023. Some gemstones however are more difficult to source nowadays, which could lead to further price hikes. Sabbagh explained that some mines, particularly smaller, artisanal mines, are finding it challenging to bounce back to full production after the pandemic as opposed to bigger mines with more modern machinery and resources and that can ensure steady production. “When mining is halted, it takes a great deal of work to resume operations – miners need to work the earth, pump water, among other processes, to get the mine back to what it was before,” he said. “Also, periods of supply shortage for specific stones are a common occurrence; smaller mines do not produce stones all the time.” Gemstone royalties Adrian Banks, managing director – Product & Sales at coloured gemstone specialist Gemfields, described 2022 as an “excellent” year for emeralds and rubies amid ongoing challenges, especially in China. “We have witnessed a step change in market demand and in the prices bid by our customers, paving the way for an exhilarating cycle in the coloured gemstone sector,” noted Banks. “The second quarter of 2022 deserves special mention when extremely strong demand was enjoyed for all qualities of emeralds and rubies.” Gemfields’ auctions for commercial- and high-quality emeralds, and mixed-quality rubies held during the quarter all set new record highs. Its emerald auction in November 2022 generated revenues of US$30.8 million, including the sale of the Kafubu Cluster – the most expensive single emerald item ever sold by Gemfields. This brought 2022 sales from its Kagem emerald mine to a record US$149.4 million. Its ruby auction in June 2022 also delivered record revenues for any Gemfields auction at US$95.6 million while its latest sale, held from November 21 to December 8, achieved US$66.8 million. This pushed 2022 revenues from Gemfields’ Montepuez Ruby Mining Ltd (MRM) auctions to US$166.7 million. In total, Gemfields raised a record US$316 million from its ruby and emerald auctions in 2022, up 32 per cent from 2021.

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