Gemstone Prices
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.
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. (However, in Thailand and other parts of the world, a bride still prefers gold, which is liquid in a way that diamonds are not).
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 that are not heavily marketed often have very reasonable prices. These stones, which the ICGA calls "collector's gems", include spinel, zircon, moonstone and morganite and some other beryl. 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.
So what does this all mean for us? In our view, there are still many good value items available on the gemstone market. In the "precious" stone category, it is still possible to buy nice blue sapphires from Madagascar, Africa and Sri Lanka starting at around $200 per carat. The market for fancy colored sapphire has changed with the introduction of beryllium treatment - there is greater supply and the colors are more dramatic. 
Fancy Sapphire Hearts from Sri Lanka
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. 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 are all the affordable stones still available for less than $10 a carat - wonderful material like garnet, topaz, amethyst, citrine and fire opal. In the end, the most important thing is that you buy the stones that you love and will enjoy. But if you're looking for the best value, have a look at some of the lesser known gems that haven't yet been heavily marketed. |
Why does a reasonably nice 1 carat heated 
Consider the case of one of the most rare and expensive gemstones, 
In the colored gemstone world, there is fortunately no cartel, though many forces try to influence market demand and perceived value. According to the International Colored Gemstone Association (ICGA), the "traditional gemstones" - 
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 level of demand. 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. But don't worry, there are no signs yet of a - First Published: October-19-2007
- Last Updated: February-11-2020
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