Political influence forecast on the gem market, ruby supplies reaching record levels, origin calls harder today. Featured gem is Paraiba tourmaline.
We wait and watch as international politics are changing the world and we wonder how all this might affect our industry. Domestically, the strong stock market and anticipation of tax cuts to corporations and individuals may signal more spending on luxury products. Will this spur growth and a robust year for the luxury industry or will further deficits occur with tax breaks and further hurt an already down industry. There was some good news regarding fewer retail jewelry store closings in the first quarter following a horrible 2016 in that category.
As for ruby production and forecasting, there is no doubt that production of ruby is at an all-time high. Gemfields has been doing large scale mining of ruby in Mozambique an now Mustang Resources is preparing to mine there as well. In the current issue of Gem Market News, May/June issue, we note this and discuss the possibility of price corrections on the horizon. Historically, ruby production was only about 20% of sapphire production and now it is approaching equal production to sapphire. To date, ruby prices have held strong as demand seems to be good but can the market absorb this much material…..Download The Full Article