India - 1st quarter 2007

The development of the indian gem market during the first quarter of 2007 was rather unedifying. Indian gem traders registered a significant drop in exports as compared to last years first quarter.

The predicted jump in sales on the domestic market seems to be some time coming. The rapid growth of the middle classes somewhat boosted local sales but this mostly affects the diamond and gold business. By far the largest part of the coloured gems being traded in India is exported to markets like the US, Europe and Japan.

Coloured gems do not play a large role in India even though ayurvedic doctors as well as astrologers have been “prescribing” gemstones since times immemorial. The most popular stones used for these purposes are coral and yellow sapphire

On the other hand our indian partners also denote distinctly risen demands as well as prices for aquamarine, rhodolite garnet and fine tourmalines. Unfortunately supply with fine green tourmaline (verdelite) rough is more than humble. This gave rise to the quaint situation of greens being more expensive than pinks. At the moment small verdelite in calibrated sizes fetches about 40% (!) more than pink tourmaline of comparable size and quality.

Reportedly demand for citrine has fallen sharply a fact that could manifest itself in falling prices in the near future.

Prices for gem quality fluorite have fallen by about 50%. Because of the low hardness and perfect cleavage in three directions fluorite plays a secondary role in the gem and jewellery trade, though.

Prices for all other coloured gemstones move sideways, if we are to borrow a term from the financial world, i.e. not at all.