Sapphire
GEMSTONES
weaves its
spell in jewellery world
By Marie Feliciano
H
ighly coveted for centuries, the sapphire
occupies a special place in the world of gems
– from the classic blue sapphire prized for its
velvety, vivid hue and the extremely rare padparadscha
loved for its “lotus” colour to fancy sapphires in
delightful shades favoured by designers and jewellery
houses.
In separate interviews with JNA, major coloured
gemstone dealers and manufacturers share their
insights and observations about the sapphire trade,
and their demand outlook for 2017.
The coloured gemstone
centres of Thailand and Sri
Lanka are the most active markets
for sapphires in Asia, especially
the latter, which is a major source of
Blue sapphire from
sapphires in stunning hues.
Gembines
“Blue sapphires have always been
highly sought after, and I believe this trend will only
continue in the years to come since quality stones
are in short supply,” Ismail said. The fact that blue
sapphires are favoured by celebrities, film stars and
royalty also adds to their allure, he added.
GEMBINES
“In recent years, fancy sapphires, mainly stones
Sapphires may be perennial favourites but the
in peach and baby pink, have enjoyed strong
strongest demand remains concentrated in gemstones demand in the American market. Peach sapphires
in cornflower blue and royal blue, said sapphire
are a good substitute for Pathmarajah (padparadscha
specialist Kamil Ismail of Gembines.
sapphires) and baby pink sapphires serve as a
A recipient of the ICA Lifetime
beautiful alternative to pink diamonds,” Ismail said.
Achievement Award, the gemstone
Sri Lanka-based Gembines, Ismail’s
wholesaler and dealer said sapphires
company, specialises in blue sapphire
in those two colours and in
layouts consisting of 6mm to 9mm stones
sizes ranging from 2 to 7 carats,
and in shades ranging from cornflower
which are clean, well-cut and
blue to royal blue.
with sufficient lustre could fetch
“These items did well during the most
around $1,000 to $5,000 per carat.
recent edition of the September Hong
Buyers often prefer sapphires in oval,
Kong Jewellery & Gem Fair,” he said. “Blue
square cushion and cushion shapes, he A 4.62-carat facetted oval sapphires have been our bestsellers in the
continued.
last few months. In addition to blue sapphire
padparadscha sapphire
As is the norm in the gemstone
layouts, we also offer oval and cushion-shaped
from Paul Wild OHG
world, geographic origin or provenance
blue sapphires weighing 2 to 8 carats.”
is a factor considered by serious buyers when
establishing the value of sapphires, Ismail said.
PAUL WILD OHG
“When it comes to high-quality stones of over 3
Germany-based Paul Wild OHG said demand for
carats, buyers are selective. They prefer a Ceylon
padparadschas of better to the highest quality remains
sapphire over an African stone or a Kashmir gem to
strong.
a Ceylon stone. With the desired geographic origin,
One of the most renowned gemstone dealers
high-quality stones become more valuable. Where the
in the world, Paul Wild has padparadscha sapphire
gemstone was mined plays a major role in determining layouts comprising facetted oval stones with a
its price,” he explained.
combined weight of more than 26 carats, and stones
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︱December 2016
GEMSTONES
in mixed shapes with a total weight of over
83 carats. Another exceptional set is a pair of
oval facetted yellow sapphires with a combined
weight of 150 carats.
In Asia, China remains Paul Wild’s most active
market for sapphires. In terms of demand outlook,
company CEO Markus Paul Wild said, “We are
expecting demand in 2017 to be similar to 2016’s.”
Currently, the company is seeing increased
demand for Sri Lankan sapphires and a slight drop in
the demand for Burmese goods.
One development that Wild pointed out is the
market’s hefty appetite for fancy sapphires.
“There is higher demand for fancy and multi-colour
sapphires since these goods offer buyers more
choices in terms of colours, shapes and sizes,” the
company official said.
RUBY N’ SAPPHIRE
Rehan Caffoor, director for Business Operations of
Sri Lanka-based Ruby N’ Sapphire (Pvt) Ltd, said blue
remains the most coveted of all sapphire colours.
“Well, it’s subjective. They say, ‘Beauty
lies in the eye of the beholder,’ but
while different markets have different
preferences, there is also a type of
merchandise that is preferred globally,”
Caffoor said. “In general, I would say
blue sapphires remain the most popular
type of sapphire.”
Serious buyers, however, only settle for
the “best,” he said. In this case, the
sapphire has to be unheated, wellcut and in the desired hues of royal
blue and cornflower blue.
“In terms of size, there
is continuous demand for
commercial sizes ranging from
1 to 5 carats, although larger,
exceptional masterpieces attract the
likes of collectors and wealthy individuals,”
Caffoor said.
Geographic origin remains a significant factor in
determining the stone’s value, he continued.
“It’s no trade secret that certain goods enjoy higher
demand and thus, command higher prices. In some
instances, there is a correlation between the stone’s
quality and colour and provenance. Blue sapphires from
Kashmir, rubies from Burma and padparadschas from
Sri Lanka are such examples,” said Caffoor. “It could be
From top: A 43.45-carat unheated Sri Lankan blue sapphire
from Ruby N’ Sapphire; and an 11.40-carat cushion-cut Burmese
sapphire and a 21.52-carat octagon-cut yellow sapphire from Paul
Wild OHG
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︱December 2016
a combination of many reasons. In
some instances, it could be the rich
and glamorous history of sapphires.
Sri Lanka is one such country with a
long and proud history when it comes to
supplying sapphires to the world. Sri Lankan stones
had even been mentioned in historical records dating
back to 543 BC. Marco Polo, the famous explorer,
mentioned Sri Lankan stones in his travels in 1293,
and Ibn Battuta also wrote about Sri Lankan gems in
the 14th century. Sri Lankan stones were also used to
produce jewels for royalty.”
The lack of supply from traditional mines could also
be a reason.
“In certain countries, mining is virtually non-existent
while some still use primitive mining methods, which
leads to tight supply and as a consequence, higher
demand,” he said.
China and Hong Kong are among Ruby N’
Sapphire’s top markets in Asia.
“Consumers have become pickier than ever,” said
Caffoor. “Therefore, demand for the ‘correct’ type
of goods in terms of quality, colour and cut will
further increase in 2017.”
Fancy sapphires have also become
more popular of late as consumers demand
diversity and colour in their jewellery choices.
“Consumers are becoming more aware
of their coloured stone options than before,
and this is partly due to the introduction of
fancy coloured stones in the collections of many
leading jewellery houses,” he said.
SARA GEM
Sapphires in smaller sizes – usually
goods between 2 and 5 carats – are the
most popular sizes at the moment since most
customers are trying to stay within a more
affordable price range, said Ron Rahmanan of
US-based Sara Gem Corporation.
“But at the same time, they stay focused on nicer
colours such as royal blue or cornflower blue since
these are the most desirable and popular colours
worldwide,” Rahmanan said.
“Of course, most of our clients are focused on
our special and unique cuts since these will give
them a market edge and distinguish them from the
competition. Unfortunately, stones of 10 carats and
up are in a very deep slump at the moment and there
is almost very little or no demand for them. Hence,
prices are going down slowly on those sizes.”
Demand for fancy sapphires is likewise gaining
steam after “many years of very slow growth.” “They
are making a comeback slowly,” the gemstone dealer
GEMSTONES
A 52.88-carat unheated yellow sapphire
from Ruby N’ Sapphire
said. “Prices for these beautiful
multi-colour sapphires are low at
the moment, which make them
ideal for designing elaborate and yet
affordable pieces of jewellery.”
This has made the sapphire family one of the most
prized and versatile gemstones in existence.
“In a way, we are privileged to work with such a
diverse gem as the sapphire. They come in so many
colours, which means the gemstone holds broad
market appeal, and it comes in all sizes and shapes. It
is ideal for classic and contemporary jewellery styles,
and is quite affordable relative to its size and beauty.
Because of its price, it can be reproduced easily from
a manufacturing point of view. This quality plays a
major part in making sapphire the best-selling precious
gemstone worldwide.”
A sapphire’s geographic provenance,
unfortunately, often affects the gem’s price. “People
differentiate and base prices accordingly. Although
the availability and rarity of the stones make a big
difference in terms of geographic origin such as
Kashmir and Burma, all other localities
should not be much differentiated
because borders were not even
defined when those stones were being
formed in nature,” Rahmanan said.
“We should judge gemstones
according to their quality and beauty
since those are the most important characters
of a stone. Several consumers who are not
as knowledgeable about gemstones also
often put their trust on gemstone reports
and not the stone. Unfortunately, that can be
misleading at times.”
Thailand currently serves as the global
manufacturing and trading hub for sapphires, with
almost 70 percent of global supply ending up in the
Southeast Asian country for heating, cutting, treatment
and redistribution, Rahmanan said.
Sri Lanka comes second because of its largescale mining resources and the strong presence of
its gemstone dealers in Madagascar who purchase
mostly unheated rough goods. “But a lot of these
stones that go through Sri Lankan dealers and cutters
end up in Thailand anyway,” he continued. “From
a consumer’s point of view, however, Hong Kong
serves as the sapphire trading centre because of
its strong manufacturing base and large market for
finished jewellery.”
A tougher macroeconomic climate has made
it more difficult to assess the demand outlook for
Necklace layout of fancy sapphires from Sara Gem Corporation
Blue sapphires from Sara Gem Corporation
sapphires and other coloured gemstones.
“It’s hard to make a prediction even
for the next few months since demand for
super luxury items like gemstones is often subject
to business sentiment. If the world economy is slow,
obviously, coloured gemstone sales will be slow, too,”
Rahmanan said.
The discovery of new mines could also impact
availability, demand and prices, he continued.
“Right now, the demand outlook for coloured
gemstones does not appear too bright due to tough
market conditions in China, Russia, Europe and the US,”
said Rahmanan. “We, at Sara Gem, however, remain
upbeat because we have faith in this industry.” JNA
For more coloured gemstone
industry updates, log on to
jewellerynewsasia.com
︱December 2016
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