The gemstone market is facing significant challenges due to inconsistent and often misleading color terminology, according to Richard Hughes, a gemologist and author. Terms like "pigeon's blood" for rubies or "Paraíba" for tourmalines, while popular, lack standardized definitions across the industry. This lack of consistency means that gem lab reports, once cornerstones of identification and treatment disclosure, are increasingly seen as subjective opinions rather than objective facts. Hughes argues that this trend is a "race to a deep ocean bottom" where labs, under pressure from dealers, prioritize providing desired color descriptions over rigorous scientific analysis.
This issue is particularly evident with "Paraíba" tourmalines. Initial discoveries in Brazil in 1983 brought rare copper- and manganese-rich tourmalines to prominence. However, the meaning of "Paraíba" has been broadened significantly by gem labs and dealers to include stones from various origins, even those whose color might be mimicked by other elements. This expansion has diminished the uniqueness and original value associated with the term. A 2015 survey of over 500 rubies listed on the Polygon trading network, cited by Stuart Robertson of Gemworld, found that over 90% had lab reports stating a "pigeon's blood" color, indicating a widespread dilution of the term.
The industry's struggle with color naming has led to a situation where consumers pay significant premiums based on these often arbitrary classifications. Hughes points out that two tourmalines could look identical, but a lab report designating one as "Paraíba" can drastically multiply its value. This practice effectively means consumers are paying a premium for a specific chemical composition rather than a distinct visual quality that cannot be replicated. This problem mirrors a historical instance where the US Federal Trade Commission banned the term "blue-white" for diamonds in 1938 due to its meaninglessness and deceptive nature.
The lack of fixed grading terms for gemstone colors creates substantial conflict. Gemologists, even within the same lab, frequently disagree on color assessments, highlighting the subjective nature of these descriptions. The American Gem Trade Association (AGTA) has taken steps to address concerns about synthetics by banning their display at trade shows, emphasizing the trade's commitment to natural stones. However, the broader issue of inconsistent color grading for natural stones remains a significant challenge. Experts like Eric Braunwart of Columbia Gem House note that the demand for lab reports stems from a distrust in the industry to provide accurate information, further exacerbating the problem as labs yield to dealer pressures for specific color designations.
Despite these challenges, high-quality colored gemstones continue to be viewed as valuable investments, especially with turmoil in the diamond market. Investors like Anna Hangartner, an early promoter of Paraíba tourmalines, utilize gems for wealth preservation, recommending they constitute 5% of a portfolio. Jennifer Leitman Bailey, a gemologist and appraiser, advises that an item's financial value is determined by market value, rarity, and resale potential, with certain criteria like large size (over five carats), natural over treated status, rare colors, and significant origins being key for investment-grade stones. While quick gains are unlikely, with significant value increases potentially taking 5 to 10 years, the long-term investment often aligns with the emotional value collectors place on unique, exceptional pieces.
