FOCUS 12 | JNA January/February 2023 According to Paul Chieveley-Williams of Belgium-based Diamwill, the fancy colour diamond business performed strongly in 2022, led by renewed interest in yellow diamonds, followed by pinks. With the 2020 closure of the Argyle diamond mine, which accounts for over 90 per cent of the world’s natural pink diamond supply, demand for diamonds in light, saturated pinks only strengthened further. Chieveley-Williams explained, “Everyone talks about blue and pink diamonds, but yellows are coming back to the fore, thanks to big brands frequently using them in their new collections.” Prices, specifically for premium-quality goods, have risen by around 15 per cent compared to pre-Covid levels, he added. Fancy colour diamonds are also viewed as ideal and cost-effective alternatives to white diamonds, especially in light of supply constraints arising from the Ukraine war. Diamwill’s major clients are from the US and Germany, revealed Chieveley-Williams, adding that the industry is hoping for the Asian market to pick up in 2023. Luxury gems Dealers are generally very optimistic about the fancy colour diamond sector in 2023, continued ChieveleyWilliams. One promising aspect of the business is the market’s growing penchant for rarity and unmatched artistry in their choice of gemstones and jewellery design. “Fancy colour diamonds, especially the larger ones, are pieces of art. They are so rare that buying them is almost the same as owning a Van Gogh or a Michelangelo painting,” shared Chieveley-Williams. “Craftsmanship, expertise and beauty – these make fancy colour diamonds irreplaceable.” The sector will receive steady support from a more discerning and sophisticated clientele, led by affluent and knowledgeable Asian consumers, the diamond specialist said. “Asians tend to be very well-informed. They have an eye for exceptionality,” he noted. Rahul Jain, director of gemstone company Caram eK, likewise sees the high-end market as a bright spot in the international gem and jewellery industry in 2023. “The luxury sector is expected to be more stable amid ongoinguncertainties. Big-ticket consumers are less affected by price hikes. There is also an element of collectability to special, finer-quality gems. Bespoke jewellery pieces will also do well this year,” shared Jain. He expects buyers to carry on investing in art, gemstones and jewellery amid continued economic and political instabilities. Colourful projections Clement Sabbagh, president of the International Colored Gemstone Association, is counting on sustained recovery in major economies coupled with improving consumption sentiment to support the coloured gemstone business in 2023. Ruby, sapphire and emerald – collectively known in the trade as the “Big Three” – are likely to fuel growth, as top markets the US, Europe and Asia continue sourcing these gems. The industry has been witnessing high double-digit price hikes for premium gemstones over the past two years, indicating a persistent uptick in the market, noted Sabbagh, adding that prices are likely to increase further, especially for top-quality gems. “Our outlook is positive, with the big three – sapphire, ruby and emerald – leading business recovery,” he remarked. “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 the big three, other gemstones are 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. Meanwhile, red gemstones are also poised 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. Radiating 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. Also falling within this colour category are rhodochrosite and red jasper, among others. Jain of Caram eK said market appetite for peridot is also on the rise alongside spinels; tourmalines bearing minty, bluish-green hues; and vivid orange stones like mandarin garnet and imperial topaz. Pearl outlook The pearl sector is also relying on China’s reopening to further promote sales. George Kakuda, chairman of the Japan Pearl Exporters Association (JPEA), explained that the Japanese pearl business is back on the track, buoyed by steady demand from Japan, China, the US and Europe coupled with a softening of the Japanese yen. Japanese Akoya and white South Sea pearls were the stars of the industry last year, he added.
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