When Will Gemstones Overtake Diamond Sales?

When Will Gemstones Overtake Diamond SalesGemstones are just as precious as diamonds. However, diamonds always dominate in the market. Things are changing though with the growing popularity of colored gemstones. So, are you curious on when gemstones will overtaking diamond sales? Well, this article is for you. Gemstone mining is expected to grow in the next years to come so it is a good time to analyse what is going on.

In Colombia, emerald mining has been growing for years. Colombia contributed to about 77 percent of the worlds emerald production way back in 1998. The mine has also made it to the Guinness Book of World Records. The biggest-ever emerald is measured around 1759-carats.

In June 2017, an 18-carat emerald ring was sold for $5.5 million at auction. A well-cut emerald is estimated to be sold for $9,800 per carat. That mean that a 1759 carat Coscuez stone can be worth $17 million or more. Meanwhile, some investors believe that the new operators of the Emerald mine, Fura Gems, can discover even bigger emeralds. Taking into consideration that diamonds are currently not growing in value, this is a great opportunity for gemstones to overtake diamond sales.

When Will Gemstones Overtake Diamond Sales

How will gemstone sales evolve?

According to smart investors, gems have the chance to increase their value in the market. These gems include coloured stones such as emeralds, rubies and sapphires. The prices of the gemstones can increase due to its higher demand. For example, according to Gemfields PLC, the emerald’s value has increased in its value by around 500 percent since 2010.

From the current $2 billion industry, if gemstones will continue to trend, colored gems can replace the market share of diamonds. There is a chance that it can reach $10 billion in the next decade.

Fura Gems are group of experts spearheading the gem revolution. The CEO of the group is aimed at the production and market conditions of gemstones. To explain further, the following are some of the anticipating breakouts for the market of gemstones.

When Will Gemstones Overtake Diamond Sales

Big opportunities in coloured gems

The gemstone market has around $23 billion globally with emeralds, rubies and sapphires making up to only $2 billion. Diamond sales account for $12 billion in sales. The industry was dominated by informal operators and governments who manage 90 percent of the market. On the other hand, Gemfields PLC manages about 10 percent of the market share.

Diamonds can be overvalued, and new production for gemstone is next in line in Mozambique, Colombia, and other countries. It can be a nice shift for the market of gemstones. It already grows about 100 percent in the last decade based on the report of the Natural Resource Governance Institute.

The gemstone industry also suffers from under-capitalization and a lack of technological expertise. The market was not totally developed because of a lack of investment.

When Will Gemstones Overtake Diamond Sales

Colombia’s emerald production rose in 2004 and had exports nationwide. The country also suffers from conflict for its abundant resources especially emeralds. However, it remains the principal source of precious stones for companies including Fura Gems. Fura Gems can also deploy technical expertise for tapping Colombian emeralds which is still unbeatable in quality.

Latest plans for future growth

Fura Gems is taking action to capitalize on opportunities on the coloured gems industry. They mainly focus on attaining gemstone projects with known properties. The company can boost the sales and productivity of gemstones through auctions. These sales projects will be focused on Colombian emerald and Mozambique rubies.

The company will take assets with limited value and increase its potential value in the market. The gemstones have unique features that make them precious and worthy to buy. Fura Gems manage a $10 million deal to manage mining 46 hectares that produce the finest emeralds in history more than its 400-year lifespan. Meanwhile, it still not opened for a big-scale development.

Their second big asset is the open-pit ruby mine in Mozambique. They have the license and have the rights to the deposits of ruby in the Montepuez District of Mozambique, the place where rubies are historically mined. The result of the project presents the occurrence of primary and secondary mineralization of higher and lower quality rubies. The company enhance the value proposition of rubies through unique heating and treatment procedure. The estimated value of the mineral assets is higher in Colombia.

Coloured gems versus diamonds

One cannot deny that diamonds dominate in the world of precious stones. Moreover, diamonds also exceed other precious stones in the market. The reality is that coloured gems are rarer than the diamonds. The black opal can cost as much as $20,000 per carat which is more than many fine Diamonds.

When Will Gemstones Overtake Diamond Sales

In a $23 billion global market, diamonds make about $12 to 14 billion whereas jade is around $3 to 6 billion. The coloured gems come distant at the third place having $1.5 to 2.5 billion.

However, this value can be changed. Thus, the market level is moving away from diamonds and moving towards colored gems. The young generation prefers more colored gems like sapphires, emeralds and rubies than diamonds according to CNBC report.

Rubies sell higher USD per carat on auctions compared to other gemstones. Smart money can be move from diamonds to gemstones.

Urgency

The expansion of the gemstones market is possible in the next years. Fura Gems has mining assets in Mozambique and Colombia. It also lessens the risk of the greenfield project. The company has a team of experts that can offer track record with a top quality result. They are aiming to have a rainbow of coloured gems all over the world.

The company has the urgency to take the gemstones industry to the next level. With this, the gemstones can take over the sales of diamonds.

Management team

The Fura Gems has a team that is dedicated to placing their playbook into action. With this, big opportunities can be made for the coloured gems market.

Shop For Colored Gemstones

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