Gemstone Prices: Do They Make Sense?

Gemstones are beautiful, but they have no intrinsic value (except perhaps for diamonds used for industrial applications). Why then does a reasonably nice 1 carat heated VS ruby sell for $500 while a fine untreated 6 carat VVS tourmaline goes for $200? Why is a clean untreated 10 carat amethyst only $30? Do gemstones prices make sense? 

The simple answer, one would think, is that it's just a matter of supply and demand -- if a lot of people want to buy a particular kind of gemstone and the supply is limited, the price for that gemstone will be high. However, that answer doesn't really tell the whole story of how things work in the gemstone business. 

Consider the case of one of the most rare and expensive gemstones, diamond. In the 19th century, world production of diamond was only a few pounds a year. After the discovery of the huge South African diamond mines in 1870, diamonds were being dug out of the ground literally by the ton. There was such a glut of supply and so little demand that the British financiers of the South African mines were in danger of losing their investment. Their solution was to create the powerful De Beers cartel that to this day controls worldwide diamond production and supply. Quality diamonds are actually not scarce at all. But De Beers controls how much supply comes on the market and that keeps prices high. 

The De Beers consortium also mounted a concerted decades-long advertising campaign to associate diamonds with love, courtship and marriage, under the now familiar slogan "Diamonds are Forever." The diamond engagement ring, once unknown in most parts of the world (including Europe), is now considered an essential part of the ritual of marriage. This was probably one of the most successful feats of social engineering in the 20th century. (In Thailand a bride still prefers gold, however). 

In the colored gemstone world, there is fortunately no cartel, though many forces try to influence market demand and perceived value. Consider for example the terms "precious" and "semi-precious." As most everyone knows, the precious stones are diamond, ruby, sapphire and emerald. But did you know that the list of precious stones once included amethyst? What happened? The discovery of major amethyst deposits in Brazil made amethyst widely available and it was dropped from the list of "precious" stones. It would be hard to maintain prices for the other "precious" stones if one of the group sold for only $5 a carat! So amethyst was demoted. 

These days some rare semi-precious stones such as alexandrite and demantoid garnet can be more expensive than ruby and sapphire. In fact the US Federal Trade Commission now discourages the use of the misleading distinction between precious and semi-precious gemstones. But ruby, sapphire and emerald continue to command a premium price in the market. 




According to the International Colored Gemstone Association (ICGA), the "traditional gemstones" -- ruby, emerald and blue sapphire -- command a premium price in the market due to "their lasting appeal and distinguished history." Even though today most of these stones are treated or enhanced in some way, the price remains precious, though ruby and emerald tend to be more expensive than sapphire. 

The ICGA identifies another category of gems that they call the "new classics" -- tanzanite, tourmaline, aquamarine, imperial topaz and tsavorite garnet. These stones are considered "the rising stars of gemstone jewelry" and they are also rising in price as their popularity increases. Tanazanite, in particular, has been very heavily promoted. 

Less well-known stones which are not heavily marketed often have very reasonable prices in the market. These stones, which the ICGA calls "collector's gems", include spinel, zircon, moonstone and morganite and other beryls. 

Then there is a list of gems the ICGA calls "affordable gemstones" -- nicely colored stones which have good availability and attractive prices. These include amethyst, citrine, ametrine, peridot, rhodolite garnet, blue topaz, iolite, kunzite, diopside and andalusite. 

What all this makes clear, we think, is that there are several factors at work in determining gemstone prices. Supply is of course important, but the marketing power of the jewelry industry is also a major factor in determining the demand level. If a gemstone is not widely available or not considered mainstream or "fashionable," it is unlikely to be marketed heavily and the price is likely to be lower. If a gemstone has a very good supply, as in the last category, there is not much the jewelry industry can do to influence prices unless they can control the supply like the De Beers cartel did with diamonds. But thus far there are no signs yet of a citrine cartel. 

So what does this all mean for you? In our view, there are still many good values in the gemstone market. In the "precious" stone category, it is still possible to buy nice blue sapphires from Madagascar, Africa and Sri Lanka starting from under $200 a carat. The market for fancy colored sapphire has changed with the introduction of beryllium treatment -- the prices have dropped and the colors are more dramatic. Tourmaline may be a "new classic" now, but prices are still attractive and the range of available colors and cuts seem to have increased as tourmaline gets wider distribution. Burmese spinel, with its excellent hardness and clarity, continues to be a great buy. The brilliance of zircon is hard to equal unless you buy diamond. Then there all the affordable stones still available for less than $10 a carat -- wonderful stuff like garnet, topaz, amethyst, citrine and fire opal. 

In the end, the most important thing is that you buy the stones that you will love and enjoy. But if you're looking for the best values, have a look at some of the lesser known gems that haven't yet been marketed heavily.

Semi-precious Gemstones: Quartz and Jade

Quartz is an extremely common mineral that can crystallize as a six-sided prism that ends with a six-sided pyramid. It is the second most common mineral, making up 12% of the earth’s crust, though most quartz does not form crystals. (Sandstone, for instance, is made of quartz.) The crystallized form of quartz, which is an extremely hard mineral, is used to create jewelry. Quartz is easy to reproduce using a hydrothermal process and therefore many pieces of jewelry actually boast synthesized pieces of quartz. It is difficult to tell the difference between most naturally occurring quartz and its synthetic counterpart; however, natural quartz that boasts crystals of extremely high clarity is rare and very expensive. 

There are many different varieties of quartz, from clear to opaque, and in many different colors. The most recognizable forms of quartz are amethyst, a violet crystal whose lucidity and color varies depending on where it is harvest; citrine, a yellow or a yellow-brownish color; rose quartz, a soft, pink colored crystal; and smoky quartz, a brown-colored quartz. Agate, ametrine, aventurine, jasper, onyx, and opal are also quartz gemstones. 

The durability and strength of quartz gemstones makes them excellent for necklaces, bracelets, earrings, and rings. Quartz is relatively easy to care for and can be cleaned with warm, soapy water. Quartz is a mineral whose properties can change if it is exposed to chemical or extreme heat. Quartz gemstones will change color and lucidity if exposed to harsh household chemicals or drastic changes in temperature. Extreme temperature changes can also cause quartz to crack. 

Jade is a term for different minerals: nephrite and jadeite. Jade is quickly recognizable as a beautiful, green gemstone used to make jewelry, figurines, vases, and dishes. It was first popular in China 5000 years ago. Its beauty and incredible durability made an ideal substance for the creation of tools, weapons, furnishings, and figures. Jade was considered incredibly valuable, even more valuable than silver or gold, and was owned only by the most wealthy, high-ranking families. 

Jadeite is the rare form of jade and is considered more precious. Jadeite is often a beautiful green, but can also be white, pink, black, brown, violet, or red. Nephrite is most commonly apprised of various shades of green, but can also be red, yellow, or white. Often, a green stone will contain streaks of other colors, forming gorgeous, eye-catching patterns. 

It has not been until recently that jade has been used for jewelry. Traditionally, jade had religious connotations, and was used to form cult figurines and other religious objects. Jade is a popular antique collector’s item. Now, jade is making an appearance in necklaces, bracelets, and earrings. Different people are drawn to different types of hade: some prefer the bright greens while others enjoy the subdued greens imbued with streaks of white or violet. It’s all a matter of personal taste!

History of jewelry

 Jewelry or more commonly spelt as jewelry in American context is defined as a form of personal adornment, manifesting itself. The common item regarded as jewelry may include necklaces, rings, brooches, earrings and bracelets. Jewelry may be forged or manufactured from almost any material which may provide a shinny or glossy look, usually which cover the categories of gemstones, precious metals or in some historic cases shells are also been used. Factors affecting the choice of materials include the cultural differences which govern the ethical values in a society and second most important concern is the availability of the materials. Jewelry may be appreciated because of its material properties, its patterns or for meaningful symbols. Jewelry differs from other items of personal adornment in that it has no other purpose than to look appealing. Items such as belts and handbags are considered to be accessories rather than jewelry.

The word jewelry is derivation from the word jewel, with French origins which was Anglicized from the Old French word "jouel" circa the 13th century. However the honor is not of French further more tracing leads back to the Latin word "jocale", meaning plaything. It might seem comical that the most important and expensive item in today’s world may be regarded as form of play item in early days of invention. Jewelry is one of the oldest forms of body adornment; recently-found 100,000-year-old beads made from Nassarius shells are thought to be the oldest known jewelry.

Jewelry is sometimes but more properly is regarded as a way of storing wealth, it is seemed also a proper medium of securing future resources as gold is a major component of jewelry items and it keeps rising and might also possess some minimal functionality, such as holding a garment together or keeping hair in place. It has from very early times been regarded as a form of personal adornment. The first pieces of jewelry were made from natural materials, such as bone, animal teeth, shell, wood and carved stone. Some jewelry throughout the ages may have specifically been as an indication of a social group. More exotic jewelry is often for wealthier people, with its rarity increasing its value. Due to its personal nature and its indication of social class, some cultures established traditions of burying the dead with their jewelry.

Jewelry has been associated with nearly every body part since its invention from the historic times so a person has a choice of wearing accessories, from head to toe hairpins to toe rings and many more types of jewelry. Jewelry is also regarded as a symbol of quality, high-quality jewelry is made with gemstones and precious metals, such as silver or gold, there is also a growing demand for art jewelry where design and creativity is prized above material value. In addition, there is the less costly costume jewelry, made from lower value materials and mass-produced. Other variations include wire sculpture (wrap) jewelry, using anything from base metal wire with rock tumbled stone to precious metals and precious gemstones.

Ruby Jewelry Proves To Be A ‘precious’ Find For July Babie

The ruby, which symbolizes contentment, is a precious gemstone that also serves as the birthstone for the month of July. By definition, a ruby is a precious gem that consists of corundum in color varieties varying from deep crimson to purple to pale rose. When it comes to gemstones, there are both semi-precious and precious. As one might imagine, the list of precious gemstones is a small one and consists only of ruby, sapphire, emerald and diamond. Because the ruby is one of the more rare gems in existence, it is also one of the more expensive. For this reason, many jewelry lovers turn toward the synthetic ruby in order to enjoy the look without spending a fortune.

When it comes to gemstone jewelry, clarity is important. Rubies, like all gems, tend to have inclusions. Genuine rubies are highly prized, especially when they are found to be clear and in the deeper shades of red. Synthetic rubies are one alternative that allows women to enjoy the look of a flawless ruby. Since having first been developed in 1837, the process of creating synthetic rubies has improved greatly and has allowed for a recreation that features both the physical and chemical properties of a genuine ruby. 

 At Almost Diamonds, a popular online retailer specializing in sterling silver jewelry, buyers are sure to find a dazzling selection of styles at prices that are sure to outshine the competition. From earrings and necklaces to bracelets and rings, Almost Diamonds has a variety of choices that feature both clear and colored cubic zirconia designs, along with genuine gemstones. Because the jewelry is available in sterling silver, which is a precious metal, you will be wearing something that can last a lifetime. 

So, you weren’t born in July and you still like the look of ruby jewelry? Jewelry lovers around the world enjoy adding as much color to their collection as possible, so don’t hesitate to purchase your favorite design and wear it proudly. Ruby jewelry, either genuine or synthetic, will make a wonderful gift for yourself or someone that you love.    

                                           
Speaking of love, many weddings are held in the month of February in honor of Valentine’s Day. This means that, because the traditional valentine colors are red and white, a piece of ruby jewelry would make a wonderful bridesmaid’s gift, but would also be an ideal gift for someone that you love in celebration of the February 14th holiday. Because this is also a popular day for engagements, a ruby solitaire would also make for a unique ring to present to the bride-to-be. In fact, many couples are choosing alternate gemstones in their engagement ring. 

In conclusion, the ruby is a highly-respected gemstone that has earned the honor of being named as one of the few ‘precious’ gems in existence. If you happen to be born in the month of July, wear your ruby jewelry with pride in knowing that you are also ‘precious.’ Afterall, isn’t that how our jewelry is supposed to make us feel? When you wear something as spectacular as a ruby, you will shine just as brightly as your jewelry.

Thailand Gemstome

Thailand (formerly Siam) is a major worldwide gem trading, and gem processing or treating center, with the city of Chanthaburi at its hub. Known primarily for its ruby and sapphire, there are several notable gemstones that are mined in Thailand, such as amethyst, aquamarine, garnet, spinel, and zircon.

Gem mining in Thailand occurs in three main regions: Chanthaburi and Trat Province in the south-east, Kanchanaburi Province in the west, and Phrae Province in the north. Chanthaburi and Trat boarder on Cambodia's Pailin region, known for its high-quality ruby and sapphire

Sapphire & Ruby from Chanthaburi

The city of Chanthaburi (Muang Chan), like Ratnapura in Sri Lanka, is one of the famous 'gems towns' (aka City of Gems) of South-East Asia. Muang Chan's (Chanthaburi's) 'weekend market' sells gems from around the world, many of which have been heat-treated in one of Chanthaburi's many gem polishing factories. Gem polishing is primarily a cottage industry in Chanthaburi, with factories spread throughout the city.
  

 

Outside of the city, sapphire and ruby mining in the Chanthaburi Province is located near Aranya Prathet (Aranyaprathet), along the Chanthaburi Aranyaprathet-Poipet Cambodian boarder, 280 km east of Bangkok. The Chanthaburi region in known primarily for mining rubies (Siam Ruby), and secondarily for yellow sapphire, or black star-sapphire. Mining is conducted along ancient river-bank clay and gravel alluvial deposits, using both mechanized mining, and small scale hand-dug pit mining.

Rubies are found at a depth of 3 to 6 feet. Hand digging is easier during the monsoon season when the ground is softer. Mechanized operations use water jets and sluicing to remove mud and clays from the gravel so that sorting can take place. As in Sri Lanka, conical-shaped baskets are used for sluicing, to extract the gems from the gravels and sand.

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Larger mechanized mines in Chanthaburi are the Bon Rai ruby mine and Nong Bon ruby mine, approximately 10 km from the Cambodian boarder. Small-scale pit mining is conducted in the Ban Bo I-Ram, Bo Na Wong, Bo Waen, and Wat Tok Phrom mining areas.

Sapphire & Ruby from Trat Province

The eastern Thai province of Trat is situated just to the south of Chanthaburi Province, bordering with Cambodia to the east, and Malaysia to the south. Until the crash of the ruby market in Myanmar in the 1960s, there was little interest in the darker, lower-quality rubies from Amphoe Bo Rai, in Trat. The Trat Bo Rai ruby mines are mostly hand-dug alluvial open-pit mines, with some mechanized operations. When Cambodia began flooding Trat with rubies, Bo Rai became an overnight ruby boom-town.

                                               

Sapphire & Ruby from Kanchanaburi

Known for its famous "bridge over the River Kwai" and deep-blue sapphire, Kanchanaburi Province is located on the western edge of Thailand, 128 km west of Bangkok. Sapphire and onyx mining in this region occurs at the alluvial pit-mines of the Kanchanaburi Bo Phloi (Amphoe Bo Thoi, Amphoe Bo Phloi, bo Ploi tambon) district, 30 miles north of Kanchanaburi Town. Sapphire in Kanchanaburi's Bo Phloi region was discovered in the early 1900s, and is one of the main sources to this day. Kanchanaburi is known for its deep-blue sapphire, which can have a dark or "inky" appearance.

Sapphire & Ruby from Phrae Province

The Phrae sapphire mines in Phrae (Wiang Kosai), situated along the Yom River, about 550 kilometres north of Bangkok. Phrae is one of the oldest cities in northern Thailand, which was part of Lanna Thai Empire that spans 800 years. The ancient cities of Sukhothai and Chiang Mai are located within Phrae Province, built by the Tai Lue people. The Burmese influence in this region is reflected in the architectural style of the Wat Chom Sawan and Wat Luang Buddhist temples.

Sapphire & Ruby from Pailin, Cambodia

For three decades after the Viet Nam war, the Khmer Rouge kept total control over the Pailin ruby mines, in order to finance its regime. Aggressive mining has severely depleted the supply of Cambodian ruby in recent years.

Heated Material from Thailand

Thai gem-cutters have become experts in the heat-treatment of rubies and sapphire, over the last few decades. As much as 90% to 100% of the sapphire originating from Thailand may have been heat treated, diffusion treated, or both.

Thailand's Muang Chan's (Chanthaburi's) 'weekend market,' and the Trat province rough gem markets sell sapphire heated in Thailand, but originating from Laos, Madagascar, Sri Lanka, Tanzania, and Vietnam.