Current Covid impacts on supply/prices

[CMN]

Hi All,

I am contemplating whether to ask a vendor to look for a large sapphire at Touson this year or to wait another year. This will be a very special purchase for me for a ring to wear on a daily basis.

Does anyone have any experience/thoughts on the rough that is being mined and available having regard to Covid and also any pricing impacts and whether this is perceived in the market to be temporary or not.

 

[Garry H (Cut Nut)]

In my experience colored gems have been way less impacted than diamonds and diamond huge price rises.
Not sure how many overseas dealers will be at Tucson, but our buying from Thai, Jaipur and Sri Lanka have been really great since Covid.

 

[T L]

This is the first Tucson gem show in two years, so I bet there’s a lot of inventory that needs to be sold. I would still look for fair values because of that. If someone tells you that the prices have gone up because of Covid, please research more germs before making a final decision on one. I’ve seen prices all over the place.

 

[kgizo]

If someone tells you that the prices have gone up because of Covid, please research more germs before making a final decision on one.

I wouldn’t research more germs. Covid is enough for me

 

[T L]

I wouldn’t research more germs. Covid is enough for me

Lol, I meant “gems.”

 

[CMN]

Thanks @T L - that’s a good point.

 

[theredspinel]

This is the first Tucson gem show in two years, so I bet there’s a lot of inventory that needs to be sold. I would still look for fair values because of that. If someone tells you that the prices have gone up because of Covid, please research more germs before making a final decision on one. I’ve seen prices all over the place.

I’m on a gemologists forum and this is what I’ve been reading since the start of covid - that sellers were sitting on so much stock they couldn’t shift due to all the travel and postal restrictions, they were lowering prices to make space for new inventory!!

That coupled with the fact we were in a global crisis and luxury goods in general but CS in particular were put on the backbench for many normal would be returning customers so again they lowered prices to get the goods out the door.

Unfortunately as soon as I started reading the consumer forums, it was the opposite, supposedly covid had made the prices soar I know which version of reality I’m more apt to believe!

I can believe for certain very difficult to get to CS that might ring true but on the whole, no not buying price hikes due to covid to be a genuine reason for the hike. Would prefer sellers to just say I wanted to raise my price so I raised my prices.

 

[JewelledEscalators]

I've generally found jewellery even at auctions to have gone up in price and for there to be lower quality of stuff compared to before with less range. I think it must be to do with movement of people and goods.

 

[JewelledEscalators]

Some opportunistic sellers I've seen hiking up their prices as soon as Covid boke out.

 

[demantoidz]

Unfortunately as soon as I started reading the consumer forums, it was the opposite, supposedly covid had made the prices soar I know which version of reality I’m more apt to believe!

Probably a bit of both - depending on how each seller's connections were impacted.
But all sellers will be happy to say prices are soaring regardless.

Good blue sapphire is common enough that one can probably find sellers with reasonable pricing.

 

[T L]

There’s’ definitely more demand right now for gems. If you even go to the mall, jewelry stores are packed. People haven’t bought for two years and they’re making up for it now. Always do your research though and shop around.

 

[lilmosun]

I've generally found jewellery even at auctions to have gone up in price and for there to be lower quality of stuff compared to before with less range. I think it must be to do with movement of people and goods.

For jewelry, you also need to account for the increase in the price of gold.

Two of my retailers mentioned that some of their overseas suppliers are adding surcharges which they hope are temporary.

 

[JewelledEscalators]

Yes, that's a good point. The price of gold has really shot up. Still, it doesn't account for hundreds of pounds increase.

 

[JewelledEscalators]

I'm generally frustrated right now. Having worked hard and have some money to spend, so many things I want to buy seems to be out of stock. I don't mean jewellery but things like Dyson hairdryer, mobile, duvet cover...even in my local supermarket, so many items are out of stock.

 

[PrecisionGem]

I'm not sure it has much to do with the virus, but as someones expenses in life go up due to inflation, it would seem that if their source of income was from gemstones, then to keep up with inflation, their prices would have to go up.

 

[JewelledEscalators]

For jewelry, you also need to account for the increase in the price of gold.

Two of my retailers mentioned that some of their overseas suppliers are adding surcharges which they hope are temporary.

I've seen how much unheated ruby rings have shot up in price, or ruby rings in general for that matter. But where the price increase seems to be too steep, they don't seem to be selling at auctions.

 

[JewelledEscalators]

I'm not sure it has much to do with the virus, but as someones expenses in life go up due to inflation, it would seem that if their source of income was from gemstones, then to keep up with inflation, their prices would have to go up.

Inflation has really gone up, that's true.

 

[fredflintstone]

Covid has driven inflation way up as the supplies cannot keep up with the demand do to shutdowns in shipping, people demanding more money or quitting their jobs. This includes gemstones in many cases.

Gemstone markets have been shut down in Sri Lanka and Covid has affected many large gemstone centers.

Yes, dealers are selling inventoried stock, but prices in general have risen because less new stock is coming in (you must have money to replace your inventory with new inventory at a higher price because of scarcity) and people were buying a lot more gemstones in 2020 and part of 2021 as people were more or less locked down and were not spending money for much of their typical leisure activities such as eating out, going to night clubs, movies, concerts, sporting events, vacations etc. They became bored and depressed, and the luxury market saw a boon for a while because they turned more towards gemstones, jewelry and just buying online for things they may not have normally done just to give their mood a boost.

Many of my dealer friends have told me they had terrific sales in 2020 & most of 2021. Then they said, things really slowed down September 2021 and on, but now things are picking up again in 2022.