Will Gem and Colored Diamond Markets Crash?

The colored gem and diamond markets have been doing well over the past few years yet many other aspects of the gem economy are troubling The Gemstone Forecaster shows markets slowing in the fall of 2015. Many of the top producers like Burma (Myanmar) show spectacular new goods but demand has slowed dramatically in recent months. The markets have been called a bubble by some, but I wonder if it is a bubble at all in regards to colored diamonds and gems. With the Chinese buyers drying up after years of rampant purchasing of gems this has had an affect across the trade. Many factors are at play of course in this high stakes game of chance, the gems of Mozambique are entering the colored stone markets like never before. The worlds largest ruby deposits are in this African nation. Violence and politics are negatively affecting the development of this resource.

by Robert Genis
The colored diamond and precious gemstone markets have been top performing assets for over a decade. However, many markets have now been hit hard or even topped. US stock markets are weak and emerging markets are crashing. Many commodities-including white diamonds, gold and silver have sunk in the face of a strong dollar. In the US, with a few exceptions, the residential real estate market never came roaring back despite low interest rates.

The reason colored diamonds and certain unheated precious gemstones (primarily from Burma) continue to increase makes sense. They are truly rare, fun to own, can be owned privately, are easily stored, and have an enviable record of appreciation. Every substantial portfolio should have a small portion dedicated to these assets.  READ MORE…

About Rob

I have been designing military coins and jewelry for nearly 40 years now.