FOCUS 焦点 GEMSWORLD | 11 | 2024 International Colored Gemstone Association President Damien Cody; Ben Sabbagh Bros Director Clement Sabbagh; Lotus Gemology Founder Richard W. Hughes 国际有色宝石协会主席 Damien Cody; Ben Sabbagh Bros 董事 Clement Sabbagh; Lotus Gemology 创办人 Richard W. Hughes and emeralds in medium to best colours were much favoured in 2023 and likely to stay in demand this year. “Paraiba tourmaline is extremely popular as well, fetching high prices due to supply constraints for good stones. Other market favourites include spinel, opal, tsavorite and Santa Maria aquamarine,” he continued. Cody and Sabbagh both expect the resurgence of China in 2024 after its prolonged remission in 2023. While the Chinese market had been struggling to accept post-pandemic prices, buyers are expected to resume purchases in time, Sabbagh shared. Cody also sees fresh opportunities in China, noting that female self-purchase accounted for nearly 80 per cent of the country’s market for coloured gemstones. “Traditional purchases are engagement rings and gifts, but the biggest segment in China now is women buying jewellery for themselves, which is rather unique to this market,” he revealed. Another growth avenue for the sector is online sales. Cody cited the burgeoning number of commercial sales transacted on the Internet, which has been instrumental in driving demand, particularly in China. “There are tremendous Internet sales on Little Red Book and Weibo. This is a huge part of our sector and among the biggest trends I have seen in recent years,” he remarked. Capacity influx Mining production for some coloured gemstones is likewise expected to increase, relieving the strain on supply that had exerted upward pressure on prices. Fuli Gemstones, for one, is scheduled to commence mining operations this year, said Pia Tonna, chief marketing officer and executive director of the vertically integrated peridot specialist. “We are on track to start bringing products to market in the third quarter of 2024. There will be a ramp-up period and, at full capacity, our mine is targeted to produce 64.5 per cent of the world’s peridot supply,” she revealed. Coloured gemstone miner Gemfields is likewise bullish, following a healthy 2023 with robust prices, albeit at lower levels than its “standout” performance in 2022, according to CEO Sean Gilbertson. “Barring any Black Swan events like the Covid-19 pandemic and geopolitical upheavals such as invasions, the market should remain relatively steady and in good shape in 2024,” he said. Supply constraints may also be eased by a growing trend Sabbagh observed in the mining sector. “More vertically integrated companies are offering mine-to-market services. More tenders are taking place as well. Dealers are coming to Brazil to source materials from mines and then holding tenders in Dubai or Bangkok,” he disclosed. Consumer expectations The coloured gemstone trade is also addressing the market’s intensified focus on sustainability, which is driven largely by socially conscious consumers. Cody views the clamour for full transparency as among the biggest challenges facing the sector. Having a completely transparent supply chain from mine to market is difficult to achieve as around 80 per cent of coloured gemstones are produced by artisanal miners in remote locations, he noted. Moreover, the industry leaves very little scars on the planet, has a small footprint and supports whole communities. “We need to deflect some of the focus on coloured gemstones away to the real causes of climate change and the real areas of concern for our society,” he remarked, pointing out that one per cent of the world’s energy is spent on mobile phones. Provenance matters The industry does make an effort though to address provenance, traceability and transparency concerns. ICA GemLab incorporates Provenance Proof Tracking in its Origin and Identification Reports. Leveraging the power of blockchain technology, the report gives each gemstone a
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