The demand for gemstones is outstripping supply, leading to increasing scarcity of top-quality stones, according to Guillaume Chautru, head of gemmology at Piaget. This issue predates COVID-19 but was worsened by pandemic-related lockdowns, which disrupted mining and stonecutting operations due to fuel shortages, border closures, and power outages. Chautru specifically notes shortages of blue indigolite tourmaline and pink spinels, alongside general backlogs. This scarcity means that high-end jewelry designs are increasingly dictated by the availability of stones, with jewelers like Silvestri finding it progressively harder to source good quality gems.
This trend is particularly evident in the market for specific colored gemstones. Paraíba tourmalines, for example, have seen prices double or even triple since lockdowns, with a 13.5-carat Brazilian stone selling for a record $4.22 million at Christie's New York. High-quality Colombian emeralds have also experienced a significant price surge, rising two to three times since the pandemic, with some pieces appreciating from $2,300 to over $10,000 in 15 years. Data from the Tucson Gem, Mineral & Fossil Show indicates that Paraíba tourmalines have increased in value by an astonishing 10,900% since 1991, significantly outperforming gold, which saw a much smaller increase over the same period. This dramatic price appreciation is often linked to sudden supply disruptions, such as mine closures or geopolitical issues in mineral-rich regions.
While some investors view gemstones as a "hard asset" due to their rarity, experts like John Butler caution that they are not "fungible" like gold, meaning each stone is unique and requires careful due diligence. He suggests that those interested in gemstone investment might consider exchange-traded funds with exposure to gemstone mining as an alternative to directly buying and selling physical jewels, which can be illiquid and complex. Meanwhile, the scarcity of traditional precious metals like gold, platinum, and silver, which have also hit record highs, is leading fine jewelers to experiment with alternative, non-precious materials such as steel, ceramic, niobium, and aluminum, to offer more affordable options and attract a younger demographic while maintaining design creativity.
