Gorgeous and precious rings lined up in a jewelry store in an upscale shopping mall.
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Roses are red, violets are blue, and gemstones command attention, and so do their prices.
Valentine’s Day has long been one of the most popular days of the year for jewelry and engagement. U.S. consumers will spend a record $6.4 billion on jewelry around Valentine’s Day this year, according to Ankur Daga, founder and CEO of luxury jewelry e-commerce company Angara. This is expected to represent 10% of total annual spending.
This year, the contents of these ring boxes may look a little different than traditional natural diamond solitaires.
“We’re seeing a shift towards engagement rings with much larger center stones, largely due to lab-grown diamonds. Also, sapphires and rubies tend to be very hot,” Daga said.
Daga says that 10 years ago, about 5% of engagement rings were colored gemstones. Now it’s over 15%.
Daga cited the results of a survey commissioned by Angara of more than 2,000 people, which found that more than 20% of people would upgrade their engagement ring to a colored gemstone (e.g., emerald, yellow diamond, pink sapphire, etc.) if possible. He said he was thinking about it.
Industry leader signet jewelers In , we see the same jewelry trend not only in fashion items but also in the wedding category. Sapphire, morganite, London blue topaz, aquamarine and green quartz stones are particularly popular, according to Signet, which sells jewelry under brands such as Zales, Jared and Kay.
Beyond engagement rings, amethyst and ruby are always popular stones for the Valentine’s season, according to Signet. Amethyst is the birthstone for February, and ruby red is associated with the color of love.
But the shift toward colored gemstones could also reflect customers seeking “more individual pieces,” said Beth Gerstein, CEO of Brilliant Earth. Specializing in lab-grown diamonds, the company also offers gemstones across the color spectrum.
“We also see that gemstones resonate because people like the personalized approach of birthstones,” Gerstein said, adding that gemstones generally “respond well to the Gen Z audience. We know that they want something that is unique and reflects their personality.” personal style. “
Jewelry that can be seen displayed for sale during the event.
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supply pressure
Just as the supply of many natural gemstones is tight, the demand for gemstones is also increasing.
Rubies and select exotic stones are becoming more expensive and difficult to source due to quality concerns and regional restrictions on where stones can be sourced. These challenges led to the creation of similar stones, such as garnet instead of ruby, for example.
“Madagascar actually has only one mine that produces most of the world’s rubies,” said Angara’s Daga. “If you look at sapphire, the mines in Burma and Kashmir are currently closed, so effectively Sri Lanka and Madagascar are the two main suppliers.On the emerald side, Zambia and Colombia are the two main suppliers of emeralds. is proving to be much more difficult now. Much higher prices than before.”
Hand holding a diamond ring with a ruby.
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Daga said wholesale prices for sapphire jewelry have increased 12% annually over the past three years. For Emerald he has 13%, for Ruby he has 17%.
“Some of the more niche stones, such as pearls and opals, are up over 20% a year. Tourmaline is up to 36% a year,” he says.
In comparison, the average annual growth rate is S&P500 The stock price index for the past three years is 10.5%.
Daga said changes in supply and demand for gemstones, and consumers’ general desire for color in many luxury goods, such as the jeweled bezels on Rolex watches and brightly colored Ferraris, are making stones a more attractive asset class. claim that it is.
“If you look at the most recent Bonhams, Sotheby’s, and Christie’s auctions, more than half of the jewelry lots sold above their high estimates, and a significant number sold for more than three times their high estimates.” Daga pointed out. “This shift shows investors are seriously considering collars as an inflation hedge and as a growth vehicle for their investments.”
A 25.86 carat bright yellow diamond was put up for auction in Hangzhou, Zhejiang Province, China on December 19, 2023.
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While the diamond market has changed dramatically over the past three years toward lab-grown alternatives, which accounted for 50% of diamond engagement rings purchased last year, Daga says the same is still true for colored gemstones. Not.
About 75% of customers who buy colored stones still prefer natural, he said.
“meanwhile [lab-grown gemstones] “They are chemically, physically and optically identical to natural, but I think the main difference is that most colored gemstones have inclusions, so they end up looking very perfect,” Daga said. He explained it using industry terminology that fans would call a flaw. That’s what really makes them beautiful, unique and different. ”
— CNBC Kett Frieda contributed to this report.
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