JNA January/ February 2024

FOCUS 焦点 JNA January/February 2024 | 13 “Obviously, there are cost of living concerns and inflation, among others. But the coloured gemstone business has been experiencing phenomenal growth. In 2024, things should be just fine with a bit of luck,” said Gilbertson. International Colored Gemstone Association (ICA) President Damien Cody shared this sentiment, adding that critical improvements in the trade such as seamless importation of gems post Covid-related disruptions as well as resumption of in-person jewellery exhibitions will bolster demand for coloured gems. “The outlook for 2024 is for strong growth in the coloured gemstone segment. Mining production for some varieties is expected to increase. Pricing levels will settle, and inventories will need to be filled if retailers are to meet the anticipated increased demand brought about by improving economies,” Cody noted. China’s recovery is a much-anticipated development in the trade as it used to account for a third of all luxury goods purchased globally pre-Covid. A protracted pandemic lockdown, however, impacted coloured gem imports into this market. Speaking at the 2023 CIBJO Congress, Cody noted, “As China recovers from its dormancy, we can expect that coloured gemstones will grow a bigger share of their luxury goods spend. At the top end of the market, we are seeing very strong demand and high prices.” Pearl trade Jonathan Cheng, director of Hong Kong-based Rio Pearl, said 2023 was an incredible year for the pearl industry as all pearl types across the board – freshwater, Tahitian and South Sea – saw a rise in value due to robust demand and limited supply. After many challenging years, it is only now that prices are reaching a level where producing pearls has become viable and pearlers have sufficient funds to further invest in improving the overall quality of their harvests, added Cheng. As with coloured gemstones, China has become a critical market for the pearl sector, with clients consistently asking for high-quality pearls. Cheng said this trend is expected to persist in 2024. He added, “With tighter supply from producers over the last few years, I see a continuation of strong growth in the pearl segment. Even amid tough times, our sector was able to grow in 2023. If the economy improves, we could see an even higher level of demand in 2024 for quality pearls.” Environmental considerations alongside innovations in pearling processes will continue to be a significant part of Rio Pearl’s business strategies in 2024, continued Cheng. While market sentiment for 2024 is generally optimistic, the gem and jewellery industry is not yet totally out of the woods. Discussions at the 2023 CIBJO Congress centred on challenges facing the trade moving forward. G7 sanctions on Russian diamonds, responsible sourcing, ESG, lab-grown diamonds, the impact of inflation and high interest rates on demand, and the viability of internationally recognised standards in the jewellery industry are but some areas of concern moving forward. Continued industry collaboration, cooperation and dialogue will thus be paramount to success. The consumers that usually buy fancy colour diamonds already appreciate their uniqueness. And especially in a market like this, when people are so uncertain, there is generally a lot more who are looking to find something more unique and stable. – Harsh Maheshwari, executive director of Kunming

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