In 2023, the gemstone market reached an estimated value of approximately $32.38 billion USD, with a projected increase to $55.96 billion USD by 2033 (according to Future Market Insights).
The colored gemstone market value is estimated to be valued at US$ 1.55 billion in 2023, and is expected to reach US$ 4.64 billion by 2033
Some particular stones, including the Red Spinels, Tourmaline Paraibas, and rubies, increased in price by 50% each year in the last 20 years. Others, such as Kashmir sapphires and Burmese rubies, have seen their price go up more than a 1000%.
Gemstone investment is seen as one of the most secure forms of investment since both value and rarity continue to increase each passing year.
The growth in the value of colored gemstones can be attributed to three major factors:
1. Increased Consumption: A decade ago, the US was uniquely the largest market for colored gemstones. By contrast, in 2023, we see major colored gemstone purchases from China and India, too. While colored gemstones represent approximately 10% of the US fine jewelry market, they represent nearly 20% of the Chinese fine jewelry market and an increasingly larger portion of the Indian market.
This shift from a unipolar US-led colored gemstone market to a multipolar one is likely to have even more profound effects on prices in the coming decade.
2. Reduced Supply: The world’s prominent mines are seeing a rapid depletion of their output, starting from the mines in Burma for rubies, Colombia for emeralds and Kashmir and Kanchanaburi for sapphires. Plus, the rising labor costs worldwide have also had a substantial impact on the quantity of mined carats.
As evidenced by the rapid increase in investment grade Pearl, Opal and Tourmaline values, relatively more illiquid gemstones with smaller markets are experiencing even higher appreciation than larger volume gemstones such as sapphire, ruby and emerald. Without the discovery of new mines for some of these gemstones, supply is expected to reduce further.
3. Shift in Investor Mindset: Historically, diamonds were the go-to for investment grade gemstones. However, the recent turbulence in diamond pricing has caused investors to look towards colored gemstones.
The substantial decline in natural diamond prices over the last 12 months (most varieties have reduced in value by 18% to 23%) has been largely due to the proliferation of lab-grown diamonds, which are chemically, physically and optically the same as their natural mined counterparts, but available at a fraction of the price.
The significantly lowered price of lab grown diamonds has placed tremendous pressure on their natural counterparts, making investors wary.