git gem & jewelry review
TRANSCRIPT
Ready for opportunities and challenges in 2022?
GIT GEM & JEWELRY REVIEW
Hot Issue2
Global Economic Data
20The World's Major Platinum Producers and Consumers
12Global TradeStatistics
21Market Wise 7, 14
Gem & Jewelry Guide
22Global Update23
ISSUE 1 / 2022
Opportunities and Challenges for Gem and Jewelry Business in Post-Covid-19 Era
Communication channels with consumers
France
Italy
High economic growth rates will be seen in Asia, Australia, the UK, France and Italy.
Developed Countries Emerging Countries Others
Before COVID-19
2%
57%
41%
After COVID-19Economy Rebound in 2023
3.7%
39.8%
56.5%
Asia
Australia
United Kingdom
Millennial (1980-1995)
Luxury Market
2021 2025
(1996-2010)Gen Z
35% 45%
2025
EnvironmentTransparency Fair Trade
10%
%
2021
4%in 15 years
40%
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Throughout 2021, global economy in general has been recovering since economic activities, which were suspended, in many countries started to resume, particularly in countries that outperformed others in extensively vaccinating their populations and reducing Covid-19 severity. Such achievement promoted confidence among consumers. Consequently, business sector noticeably escalated its production. Thus, it could be said that 2021 is the beginning of recovery and anticipation. Revisiting what happened during the crisis is not only managing problems at hand but also obtaining a guideline for future challenges.
Rebound Seen in Many Countries
Though many countries have begun to bounce back from economic consequences in 2021, the recovery has not been extensive. The recovery leans on 2 major countries—China and the US—which play a vital role in the world’s production growth. These two countries accounted for 25% and 20% of global production. Comparing developed countries and emerging countries, it is found that prior to the spreading of Covid-19, emerging countries generated 57% production, while developed countries contributed to
41%. However, the pandemic inflicted emerging countries much heavily than developed countries. Moreover, it also diminished production rates. According to Kearney, a global business impact analyzing firm, it has been anticipated that production rate of developed countries will reach 56.5% in 2023 whereas that of emerging countries will be at 39.8%. The other 3.7% will belong to other countries. High economic growth rates will be seen in Asia, Australia, the UK, France, and Italy.
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Meanwhile, in business sector, Great Expectations: Global Executives Respond to Business Disruption, a survey report conducted by PwC, one of the world’s leading company in audit and business consulting, asked business executives of over 250 noted companies from various industries around the world (93% respondents working for companies with revenue exceeding USD 1 billion) regarding corporate growth and business recovery plan
ECONOMIC GROWTH FORECAST BY REGION 2021-2023 (SOURCE: WWW.KEARNEY.COM)
Improve efficiency and drive cost savings
Accelerate digitalization
Restructure current business portfolio
22% 21%
Top 3 cost-saving strategies
35%
Strategic priorities in 2021 and beyond
Develop new business model
Revisit our company strategy
Organically expand into new business areas/or markets
Improve efficiency and drive cost savings
Accelerate digitalization
Restructure current business portfolio
51% 22% 21%37% 28%
Top 3 strategies Top 3 cost-saving strategies
35%
STRATEGIC PRIORITIES IN 2021 AND BEYOND (SOURCE: WWW.STRATEGYAND.PWC.COM)
after the pandemic, or their strategic priorities in 2021 and beyond. As for revenue growth measures, the top 3 primary strategies were developing new business model (51%); revisiting company strategy (37%); and organically expanding into new business areas/or markets (28%). Top 3 cost-cutting measures were improving efficiency and driving cost savings (35%); accelerating digitization (22%); and restructuring current business portfolio (21%)
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In addition, leading business executives should concentrate on the following issues to reshape business for competitiveness in the digital era. 1. Business leaders should put priority on developing business model and revisiting company’s strategies. 2. Business should be operated with recognition on issues regarding environment, society, and governance (ESG), which have become more vital. 3. Raising expenditure on investment in digital technology must be based on transitioning from analog to digital format and building cyber safety and sales to boost business growth. 4. Investing in digital has to focus on developing new products and services, integrating digital systems and business models by emphasizing on company’s technology management and digital capability development.
Use Online Platforms to Broaden Business Opportunities
As traditional trade formats could not be operated as usual, online trading platforms and omni channels have become prominent factors keeping consumption vigorous despite lockdown or social distancing measures. Online trading has turned into the principal channel used by business sectors for marketing communication. Many businesses have shifted their competition to online markets. Thus, marketing engagement through the channels has become as arduous as traditional trading channels. An interesting example of entrepreneurs using online platforms to build their business is ENGELSINN.
ENGELSINN is a new German brand, which was established in April 2019. The brand was founded by only 4 founders who helped transforming a local online jewelry brand into a global brand. Creativities and various ideas were combined to build Ideate (Idea + Creative = Ideate), which is one of design thinking steps. Then they developed a model to create high-quality and stylish jewelry. With competent marketing strategies, the business was able to leap greatly during an uncertain time such as now. The German brand’s interesting strategies are as follows.
1. Precisely identifying target group: ENGELSINN found that people with a smartphone look at their device averagely around 200 times a day. 90% of Facebook users use the application 11-14 times a day. Therefore, we need to understand how to approach our customers. A team is responsible for inspecting and analyzing trend outlooks
as well as customers’ characteristics and behaviors for complete understanding. After that an appropriate strategy is chosen for each market, for example, advertising and creating contents on Instagram to reach teenagers whereas marketing toward adult customers relies on Facebook, which is more popular among them.
2. Simple and enticing website content: Many brands, engaging in online marketing, usually post diversified contents to sell their products. Such approach is ineffective. We should tactfully entice customers instead of pushing them, create captivating contents to introduce the brand to customers, produce a user-friendly website to help customers understand what we present. Additionally, the brand also provides online advisors and experts to help customers with their problems and recommend the most suited products for them.
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3. Carefully communicating brand’s overall image: When you engage in large-scale trading, which connects customers across the globe, an expert online content creator is needed to be able to link networks and businesses together. The implementation needs to be in a macro concept to build the brand’s positive image without being restricted under geological constraints or language differences. The brand has to present quality products so that customers will recommend it to their families and friends.
4. A strong team: ENGELSINN began with only 4 staff before expanding to 20 staff. Each of them possesses learning skills and professionalism to be able to take charge of design, production, shipping, and other important tasks. The brand’s competent job distribution contributes to its growths and customers’ satisfaction.
Additionally, small to large traders can use popular online jewelry markets as their storefronts. The followings are best online trading markets rankings of 2021.
Leading Online Marketplaces
Strength Weakness
Worthy• Highly reliable and easy to use• Organized webpages with product images and clear details
• Products of under USD 5,000 subjected to a commission rate of 18% • Jewelry at the minimum price of USD 1,000
eBay
• No insertion fee for listing up to 250 items• Step-up fee rates• Over 180 million buyers worldwide• Provide a mobile application for bidding
• Strict guidelines for jewelry trading• Highly vulnerable to online scamming
Etsy• The world’s largest handmade jewelry market• Quick and simple registration • Low service fee rates.
• 15% fee rate for products sold through Etsy’s advertisement• Limited customization tools are offered for storefront decoration
WP Diamonds
• Payment is made within 24 hours• Transparent value assessment, reliable, and safe• Provide maximum logistic insurance of USD 100,000
• Fit for high-end jewelry• Resale jewelry may earn lower than market prices
Shopify• Offer various customization features for storefront decoration• No selling fees or commissions
• Many storefront decoration features are charged monthly• Website usage fees are charged monthly
Digital Generations: Future Consumption Drivers
Covid-19 pandemic paved way for online platforms’ rapid booming that they have become primary channels for traders to communicate differently from what it used to be. Furthermore, digital technology expansion has also boosted online shopping among millennials (born between 1980 and 1995) and Gen Z (born between 1996 and 2010) during the pandemic. The groups are the dominant users and main online purchasing powers. According to Alioze, a UK e-commerce platform, millennials accounted for 35% in luxury market. The rate will increase to 45% in 2025. Meanwhile, Gen Z consumers accounted for around 4%. The rate will reach 40% within the next 15 years. In 2025, millennials and Gen Z will account for 55% in luxury market. They will become the preeminent consumers who will drive the market’s growth and replace older generations, whose purchasing power for luxury products weaken.
Millennials and Gen Z value environmental responsibility, ethics, and transparency of luxury brands they choose.
However, factors influencing their jewelry shopping are slightly different. Millennials prefer quality goods with uniqueness, produced from ethical and environmentally friendly sources. On the other hand, Gen Z looks for reviews, compare products specifications, and prefer popular innovative products which are reasonably priced and precisely presented. The growth of these consumer groups has urged leading brands in the industry to focus on them much intensely.
SOURCE: WWW.THESPRUCECRAFTS.COM
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It is undeniable that the gem and jewelry industry could no longer rely on traditional trading anymore as online trading and digital technology have swiftly evolved and changes constantly occur in a quick pace. Thus, choosing suitable technology is essential. Moreover, growing number of digital natives who are becoming dominant buyers in online market has driven brands to shift their focus more toward marketing to the groups. However, the important thing is not abandoning other consumers but balancing between consumer who will be the key driving force and existing consumer bases. Since there is no such thing as “one size fits all”, there is no marketing strategy that works with every consumer group. Therefore, understanding customers’ behaviors, characteristics of each demographic, and marketing tools will help entrepreneurs who have been struggling (due to the pandemic) to be able to stand up again and progress firmly in the future.
This French luxury jewelry brand with a long history (established in 1874) is another brand that reformed its traditional image by fearlessly using a marketing strategy called Digital First. The strategy brought about its remarkable change enabling the brand to capture Chinese millennials and Gen Z. It is different from the brand’s typical campaigns in Europe and North America. Cartier opened its official store on Tmall and became a leading brand in online market with its live streaming via Taobao Live on Singles’ Day. The streaming gained over 800,000 viewers. Alizila, Alibaba’s online and digital trading news center, stated that Cartier’s youngest customers are in China. They consist of 65% millennials and 25% Gen Z. This is a result of the brand’s successful digital marketing by inducing teenage customers through famous celebrities, shopping formats and platforms popular among the group. Cyrille Vigneron, Cartier’s chief executive said, “…we should not try to make young products for young people at cheap prices. It’s not about that. You have to explain classics to a young generation in a modern way.”
The Danish giant jewelry company has planned its marketing strategy to drive sustainability and create long- term sustainable growth. Pandora has set to reach its 2022 goal of 6-8% growth in revenue annually. The company planned to increase production capacity in its manufacturing bases in Thailand and Vietnam by 60%, or additional 80 million pieces of production each year. It aims to become a favorite brand offering affordable products to expand customer bases to millennials and Gen Z. Pandora emphasizes primarily on key markets such as the US and China. The brand has determined to reduce greenhouse gas
The American brand is another leading global jewelry brand which has placed importance on millennial and Gen Z markets. The brand expanded its online channels to create awareness of the brand, so the groups have become more familiar with the brand. With online advertising tools and marketing through online influencers, Tiffany & Co. was able to reach the consumers. In its latest campaign, Beyoncé and Jay Z, an icon of streetwear fashion popular among Gen Z, are featured to boost recognition and capture the young generations. Furthermore, the brand has formed relationships with celebrities and musicians well-known among the groups to obtain further growth in strongly competitive online trading.
BEYONCÉ AND JAY Z FOR TIFFANY & CO’S ABOUT LOVE CAMPAIGN (COURTESY OF WWW.PRNEWSWIRE.COM)
emissions by 50% within 2030, create gender equality in the organization, and accentuate using recycled materials as key materials in production. These issues are deeply concerned by these two groups.
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Unraveling Covid-19 pandemic has prompted several nations to relax their border controls and start to allow foreigners’ entry. This has prompted numerous business sectors to resume their businesses. Entrepreneurs have accelerated adaptations during the pandemic by exploring new trade channels and modifying company strategy to take advantage of opportunities presented by digital technology. As people’s perspectives and way of living have changed after the pandemic, the technologies have increasingly played a vital role in society and lifestyles. Entrepreneurs have opened up to new digital service technologies as well as online platforms in order to fulfill consumer demand for convenience, focus on sanitation safety, and reduce environmental impacts. Such movement has brought about the Next Normal living trends, which began to expand widely and become influential to future life and economy.
“Next Normal” is a new way of living which will emerge after the pandemic is subdued. It is expected that new technology or innovations would be introduced to effect improvements in practically all enterprises. Main trends which will incite changes in gem and jewelry business are as follows:-
From New Normal to Next Normal
Stay-at-Home Economy
The grave Covid-19 pandemic has forced people to spend more time at home. They worked, attended meetings, and shopped online more. These activities have been conveniently done through online platforms. This tendency has developed an economic model called Stay-at-Home Economy, which included meetings via applications, e-commerce business, and
Gem and Jewelry Business Transformation for the Next Normal
MARKET WISE
shopping technologies through virtual reality. As a result, the e-commerce industry has been booming significantly since 2020. According to Statista, in 2020, worldwide e-commerce business value reached USD 4.28 trillion, a 28% jump from the previous year. As for Thailand, data from KKP Research reveals that e-commerce market value was around USD 9 billion, an 80% surge compared to that of 2019.
Touchless Society
The Covid-19 outbreak has led people to perceive that touching could increase infection risk. Way of living in the Next Normal era will focus mainly on safety and sanitation. Thus, technologies have been developed to reduce touching, for example, touchless retailing in retail businesses which reduces direct touch between buyers and sellers; cashless payment and e-payment; a non-contact delivery option which deliveries packages by putting them on a container or at a location pre-specified by customers; and business space design concept enabling touchless services through voice recognition or augmented reality (AR). They not only make life easier for users, but they also keep infections at bay.
USD 9 billion2020
80%
USD 4.28 trillion2020
28%
Worldwide e-commerce business value
Thailande-commerce business value
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Changes in Gem and Jewelry Business
Boosting Sales Through E-commerce Channels
Lockdown restrictions, social distancing, and public health protection guidelines compelled the jewelry business to migrate to digital world after consumers have progressively shifted to buy products online. According to McKinsey & Co. has assessed that worldwide jewelry industry will grow at 3-4% rate annually from 2021 to 2025, with retail value of around USD 340-360 billion. Rising demand will come from younger generations as well as domestic markets since travel restrictions will still in effect. The firm has also anticipated that by 2025 online jewelry trade value will account for 21% of worldwide jewelry trade value. Meanwhile, according to a research study of Research and Markets states that worldwide online jewelry trade market hit USD 21,500 million in 2020. It is estimated to reach USD 58.9 billion by 2027 with an average annual growth rate of around 15.5% from 2020 to 2027.
USING AR TECHNOLOGY IN JEWELRY BUSINESSSOURCE: HTTPS://JEWELLERYNET.COM
Furthermore, a McKinsey & Co. survey of European customers’ jewelry buying during the pandemic conducted in the first quarter of 2021 discovered that around 48% of survey respondents in the UK, Germany, Italy, Spain, and France purchased jewelry online since the pandemic began. After the pandamic, 17% stated that they would continue shopping online. The majority of buyers intend to continue their behaviors in digital usage, which include engaging in more online shopping and using technology integrated tools in jewelry shopping.
Augmented reality software technology or AR has increasingly become more important in gem and jewelry industry. The technology helps customers to design their jewelry by choosing gemstones, metals for settings, and other desirable components before converting a design into a 3D image using AR. The image is, then, sent to a 3D printer at a jewelry shop to instantly produce a wax model or sent to a company’s factory to produce a finished jewelry. According to Statista, there will be 2,400 AR users through mobile phones by 2023. Therefore, customized jewelry and digital channels for customer communication have cut down a gap between online selling platforms and brick-and-mortar shops. Furthermore, online payment has been gaining more share in the market during the pandemic. It will remain significant in the new way of living as people have become more confident in e-wallet system and increasingly shopped online.
Traditional stores, on the other hand, are still significant. Though online sales have been growing and people prefer to look for online information before buying a product, most of the consumers still like to buy jewelry at brick-and-mortar shops. This is because they realize importance of seeing and experiencing a jewelry piece in person. With the shopping style, they can also get personal consultation and other customized services. Meanwhile, a product quality certification, guarantees, reviews, free product delivery
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Thai Business Transformation in the Next Normal Era
The pandemic has urged Thai gem and jewelry business sectors to revisit their operational process. They have shifted increasingly toward digital platforms, e-commerce and social media. Thus, new business models which are in line with the Next Normal trend have emerged. Jewelry online trading has been flourishing through marketing strategy focusing on customers’ access to products from various channels or Omni Channel. Small and large Thai entrepreneurs have shifted to online marketing through social media platforms. Furthermore, the rising trend of livestreaming is another channel boosting jewelry sales by presenting products and special price promotions to reach younger generations, notably millennials and Gen Z.
Jewelry Business
Ten Fingers Factory & Design is a jewelry manufacturing company of 40 years. Apart from manufacturing jewelry for different brands, Ms. Khajee Wongpanich, the second generation of the company, has expanded the company by building a jewelry brand called Mirror Mirror. The brand
PLATINUM JEWELRYSOURCE: HTTPS://JEWELLERYNET.COM
and return services, an opportunity to try on a jewelry piece before paying, and discounts or additional offers can effectively boost online retail sales for business operators.
Valuing New Things
After the pandemic, consumers’ brand loyalty has changed as well. According to a report of McKinsey & Co., plenty options available on online platforms have prompted buyers to extensively explore different brands. Despite holding quality and value as key shopping criteria, customers, particularly millennials and Gen Z, have increasingly focused on value of different aspects. They concentrate on brands that adhere to the same values, which usually include those relating to sustainability, being responsible to society and environment, and good governance.
According to a survey of Bain & Co., 60 – 70% of young consumers in China, India, and the US will consider sustainability while purchasing for diamond jewelry. Social impacts are the primary issues concerning sustainability which consumers in the US take into consideration. Consumers in China and India primarily prioritize environmental conservation, conflict-free supply chains, and low carbon footprint while purchasing jewelry .
Changing Jewelry Styles
Covid-19 crisis has greatly influenced jewelry design trends. Digital communication has boosted demand for jewelry products suitable for online meetings such as stud earrings, hoop earrings, and short dangle earrings, brooches, chockers, and pendants.
Furthermore, jewelry has evolved into a means for expressing one’s personality. Many buyers have searched for jewelry which represents characters and adjustable according to preferences. New shapes, designs, and materials have been influential in jewelry collections. Asymmetrical gemstone cutting, flawed or dull gemstones with uniqueness reflecting buyers’ personalities, and jewelry focusing on diversified usage enjoy rising demand from women who buy jewelry for themselves without waiting for special occasions and festivals.
TAEVIKA LIVESTREAM
SOURCE.FACEBOOK:
TAEVIKA BY K&N
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has altered its strategy toward online marketing as well as establishing a network of young entrepreneurs from different brands to cooperate in marketing via livestreaming on Facebook. Meanwhile, the brand also concentrates on being responsible to society and environment, remodeling business toward sustainability to meet demand of younger consumers to conform with save-the-planet trends. Consequently, the brand has created jewelry from upcycling to add value to used materials. The attempt resulted in a sustainable jewelry collection, which won the Design Excellence Award (DEmark) 2021, which was awarded by the Department of International Trade Promotion, Ministry of Commerce. Moreover, it has also pursued opportunities to enter China market to expand jewelry trade. The brand has participated in trade fairs and fashion shows, for example, the recent Shanghai Fashion Week in October 2021. In addition, it has been seeking business partners for product placing through showrooms in Shanghai.
Colored Stone Business
Regarding colored stone business sector, according to an interview of Mr. Adisak Thawornwiriyanont, the president of Chanthaburi Gem and Jewelry Traders Association, overall colored stone businesses witnessed constant trading activities. Although foreign buyers were unable to travel to Thailand, Chinese and Indian buyers’ demand for premium
rubies and sapphires was relatively high. Thus, business operators sent detailed images of products to Chinese buyers for their consideration. Following the placement of orders, products were delivered to Hong Kong before being transferred to China or were directly exported to China. However, as imports of rough stones have declined lately, especially those of rubies and sapphires (despite ruby purchasing through gemstone auctions). Therefore, sellers were unable to find premium quality products as demanded by buyers, for example, rubies were not of pigeon’s blood color. As a result, Thai gemstone traders had to sell gemstones at moderate prices.
Transitioning from the New Normal to the Next Normal is progressively bringing new digital technologies and innovations as well as awareness regarding sustainable development into everyone’s life. Entrepreneurs should adapt by raising digital skills, understanding digital transformation, mastering online marketing to expand trading channels in time with consumers’ dynamic behaviors, and communicating with customers to create positive experiences and reach target groups more effectively.
Gold and Gold Jewelry Business
Gold and gold jewelry businesses have employed digital technologies to elevate service channels to enhance effectiveness, speed, and concentration on trade safety. Mae Thong Suk is among the businesses. Mr. Natthapong Hiranyasiri, MTS Gold’s chief executive, said during an interview on business strategy adjustment by developing trade innovations for gold products—gold bullions and gold ornaments. Currently, the company has utilized gold blockchain to connect with e-Wallet mobile application of Krungthai Bank and launch Krungthai Gold Wallet to broaden capacities and channels for individuals who are interested in trading 99.99% gold at global market price per ounce in US dollar through real-time online channels. The service has attracted over 10,000 investors during the first month of its launch. Moreover, gold saving service known as “Mae Thong Suk Aom Thong” also uses the largest gold blockchain in Thailand.
SOURCE: HTTPS://WWW.MIRRORMIRRORBRAND.COM/
MARKET WISE
South Africa
South Africa is the world’s largest platinum producer. The precious metal is South Africa’s key exports. In 2021, its production capacity was 4,475,000 ounces, accounting for 73% of global production. The country’s major sources are in its northern part – Limpopo and North West. Impala Mine and Mogalakwena Mine, ranked as the world’s top 2 platinum producers in terms of volume, are in South Africa.
Russia
Russia is the world’s second largest platinum producer. In 2021, the country’s production capacity was around 610,000 ounces, accounting for approximately 10% of the global production. Its main sources are Khabarovsk Krai, Chernogorskoye, Krasnoyarsk Krai and Kola MMC Mine.
Zimbabwe
Republic of Zimbabwe possesses abundant resources of various precious metals and economic minerals-- platinum, chromium, gold, and diamonds. Platinum and chromium industries account for 12% of GDP. In 2021, the country’s production capacity reached 497,000 ounces, approximately 8.15% of the world’s gross production. The Great Dyke, a mountain range that extends from north to south in Zimbabwe, is the country’s primary platinum source. Platinum mines, for example, Mupfuti Mine and Bimha Mine are located in Mashonaland West.
Canada
Canada is teemed with diversified resources such as oil, natural gas, and precious metals. Gold is the most important precious metal, followed by platinum. Canada is the world’s fourth largest producer. Most of its platinum sources are in Ontario, accounting for production capacity of about 75% of the country. Other leading sources are in Newfoundland & Labrador, and Manitoba, with a total production capacity of approximately 240,000 ounces.
Platinum, like gold and silver, is a valuable metal that is commonly utilized in the gem and jewelry industry. Due to its resistance to tarnish and corrosion, strength, and malleability, the metal has been used to produce different kinds of jewelry. It has also been commonly utilized to create settings for diamond and colored stone jewelry. Demand for platinum is predicted to rise at a 3.8% annually between 2021 and 2025.
There are now 43 projects worldwide, which have been developing, to escalate platinum production capacity. Six of the projects currently under construction are Platreef and Bakubung in South Africa, which are expected to start its production in 2022; 3 projects include Darwendale and Karo, which will start production in 2022 and Mupani, which will begin production in 2025; and Bamboo Creek in Australia, which will start production in 2023. The projects are expected to increase platinum output capacity by 600,000 ounces.
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THE WORLD'S MAJOR PLATINUM PRODUCERS AND CONSUMERS
The World’s Major Platinum Producers and Consumers
Top Producer Top Consumer
China
Although China has platinum sources in Gansu, accounting for around 57% of the country’s overall production capacity; Yunnan; and Sichuan, production capacity remains inefficient for domestic demand. This is because China’s platinum consumption is the highest of the world. Furthermore, it is the world’s largest consumer of platinum jewelry, accounting for 53.97% or 970,000 ounces of the world’s total platinum jewelry consumption. Platinum jewelry is second only to gold jewelry in popularity. Gen Z consumers are preeminent fans of platinum jewelry.
India
Like China, India has been known as a major gold jewelry consumer. However, its platinum jewelry market has grown significantly since pre-pandemic period. Millennials and Gen Z consumers in the capital city are the target consumers who use platinum jewerly. The products have been gaining popularity in secondary cities. Sales share of primate cities, secondary cities, and cities of other levels was at 60%, 35%, and 5%, respectively. Demand for consumption was around 247,000-264,000 ounces of the world’s gross consumption.
US
The US was the fifth largest platinum producer of the world. Montana is the country’s primary platinum source, with annual production capacity of approximately 110,000 ounces. However, its domestic consumption has been ranked as the fourth highest of the world. Platinum engagement ring consumption among American women aged 18-30 years and 31-45 years increased at the fastest rate since the pandemic began.
Platinum consumption in 2020 decreased 13.58% due to the pandemic. However, in 2021, as economy of many countries started to recover, platinum jewelry demand increased by 5.27%.
Japan
Japan is the world’s second largest consumer of platinum jewelry with a 14.76% share or 265,000 ounces of the world’s total consumption. As Japan economy began to improve in the second quarter of 2021, consumer spending began to rebound. High-income customers, an increase in weddings, high-end jewelry buyers, and consumers who buy jewelry for investment are 4 significant domestic consumtion drivers. Furthermore, platinum engagement rings are preferred by more than 90% of female buyers. The products are popular among women of all age ranges.
Platinum Consumption in 2021
Decreased
2020
13.58%
2021
Increased
5.27%Platinum
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Trade Outlook of Big 4 in Post-Pandemic Global Recovery
Big 4 gemstones consist of diamonds, rubies, sapphires, and emeralds. These gemstones have been traded for millenniums. Until today, they remain the most sought-after among all gemstones. People generally buy them as heirlooms, wedding gifts, and for long term speculation. During the past 2 years, global gemstone trading market has been hampered due to the pandemic. However, the Big 4 market outlook is still promising. It has been expected that global sales of the Big 4, consisting of fancy diamonds, rubies, blue sapphires, and emeralds, in 2021 – 2031 will grow averagely by 5.7% per year.
Diamonds
Going back to 2017 – 2019, rough diamond production declined around 5% yearly. Covid-19 outbreak was an additional key factor forcing producers to reduce their diamond production as consumers held off on diamond consumption following economic sluggishness. Consequently, polished diamond producers, having faced oversupply since 2019, cut down rough diamond purchase because they needed to empty their stocks before acquiring the new stock. Global rough diamond production of 2020 (production volume of 111 million carats) reduced substantially by 20%1, compared to that of 2019.
IMAGE SOURCE: WWW.NATURALDIAMONDS.COM
1 In 2020, leading rough diamond producers of the world such as ALROSA, De Beers, and Rio Tinto reduced their rough diamond production by 22%, 19.4%, and 14%, respectively.
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SOURCE: RAPAPORT
IMAGE SOURCE: WWW.BLUENILE.COM
As polished diamond traders confronted overstock issue while demand for diamonds diminished, prices of rough and polished diamonds fell 11% and 3%, respectively. Global revenue throughout diamond supply chain also slid 15 – 33%. Moreover, global diamond jewelry sales shrank 15% as international travel constraints limited demand exclusively to domestic consumers.
However, in 2021, global economy has been bouncing back. Most nations began to resume economic activities.
2 Consumers are likely to buy larger diamonds. A recent American consumer survey shows that most consumers bought diamonds of average size of 1.22 carats, previously the average size of diamonds they bought were of 1.05 carats.3 In 2019, inflation rates in the US, China, and India were at 1.76%, 2.9%, and 4.6%, respectively.
Diamond demand was expanding due to increased demand2 for engagement rings, wedding rings, and self-gifts and gifts for important persons on special occasions. Moreover, buying diamond jewelry is also a good way of investment (Diamonds are fit for medium to long term investment) as value of natural diamonds increases owing to their scarcity and rarity; hence they are highly valued. DG Diamant Gems stated that a high-quality diamond of 1 carat or 0.2 grams is valued equivalent to a gold bar of 1 kilogram. It is recommended to invest in a diamond of 1 carat and over, round brilliant cut, D to F color, and clarity of IF to VVS2.
As a result, confidence for diamond consumption has been growing among consumers, especially those in major diamond markets such as the US, China, and India. Consequently, diamond trading market has been improving. Nevertheless, the world’s top diamond producers-- Alrosa and De Beers—still curb their productions and trading. Therefore, prices of rough and polished diamond jumped 5-20% depending on diamonds’ sizes. Prices of large diamonds have been risen more than those of small diamonds.
According to diamond price statistics, it is noted that diamond price constantly rose throughout these past years. From 1960 to 2019, price per carat grew averagely by 14% each year, which was higher than inflation rates3. Referring to Rapaport statistics, price of a 1 carat, round, D color, VVS2 diamond in 2020 was at USD 13,000. In 2021, it went up to USD 13,400, a 3.08% increase from 2020. The larger the diamond, the higher the return. DG Diamant Gems informed that during the past decade, 3-carat-sized diamonds yielded the best return with a 123% surge in value. In addition, during the past 15 years, rare fancy diamonds gave high returns, pink diamonds, in particular, were able to gain a 200% upsurge in return profit.
Size (carat)Price (USD) Price (USD) Change
(%)2020 2021
0.39 1,092 1,092 -
0.5 2,500 2,500 -
1 13,000 13,400 3.08%
3 123,000 130,500 6.10%
5 370,000 380,000 2.70%
Currently, consumers’ purchasing power has been rising, so analysts have expected that diamond market will expand. Bain & Company has predicted that in 2022 – 2024, demand for diamonds will recover to the same point before the pandemic. From 2023 to 2030, the market will grow 2-3% per year. It has also been anticipated that production will go up 2% within the next 3-5 years.
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Rubies, Sapphires, and Emeralds4
Rubies, sapphires, and emeralds, or the “Big 3” are exquisite rare polished precious stones. Thus, they have always been highly in demand. However, their production volume has declined, particularly during the pandemic. As a result, the whole global colored stone supply chain has been hampered as mining operators were forced to cut down their productions due to economic crisis and lockdowns in many countries. Declines in rough stone volume have caused raw material insufficiency in gemstone cutting and polishing5 in many production centers such as Thailand, Sri Lanka, etc. In addition, most of the leading trade fairs and colored stone auctions were cancelled. Thus, high quality Big 3 gemstones’ prices surged due to declining supplies.
DUCHESS OF CAMBRIDGE’S 12-CARAT BLUE SAPPHIRE ENGAGEMENT RINGIMAGE SOURCE: WWW.HELLOMAGAZINE.COM/
4 The world’s primary sources of rubies are Mozambique, Myanmar, and east African countries. The world’s key sapphires’ deposits are in Madagascar, Sri Lanka, east African and south-east African countries. Most emerald supplies are from Colombia, Zambia, and Brazil.5 The world’s most important ruby cutting center is Thailand. Most polished sapphires are from Thailand, followed by Sri Lanka. The world’s most significant emerald cutting center is India, followed by Colombia.6 An agency studying data regarding markets and wholesale prices of gemstones in the US. The data of gemstone industry and pricing is published in GEMGUIDE as a guideline for gemstone trading.
MVI Marketing conducted a survey on 1,100 fine jewelry buyers in the US and interviewed 100 jewelry traders and producers for a study, published in the early 2021. The study found that over 93% of customers preferred buying rubies, sapphires, and emeralds over other colored stones. During the past decade, brides and grooms increasingly chose jewelry with colored stones and demand for colored stone engagement rings soared more than 30%. Retailers offered 15% more products of colored stone jewelry for wedding. The growing popularity of colored stones was partially influenced by celebrities such as Duchess of Cambridge whose engagement ring includes a 12-carat blue sapphire; Jacqueline Kennedy who wore a diamond ring with a 2.88-carat emerald at her wedding; and Jessica Simpson
Usually, rubies, sapphires, and emeralds are more expensive than other gemstones. Their value escalates by appearance and rarity. Growing number of investors have also shifted their interest to premium natural gemstones as safe haven asset. Evidently, at an online auction of Sotheby's in April, “Tutti Frutti”, a Cartier bracelet featuring rubies, blue sapphires, and emeralds, was auctioned at USD 1.3 million. It was the highest price of online gemstone auctions. Additionally, an auction of Christie's Magnificent Jewels in Geneva on May 12, 2020, prices of many emerald jewelry pieces sold were over 3 folds higher than expected. For example, a 6.5-carat emerald ring with slight clarity enhancement was auctioned at USD 117,318 from its expected price of USD 22,343 - 33,515.
High quality untreated rubies are the most preferrable gemstones for investment, particularly Myanmar pigeon’s blood rubies due to their extreme rarity and being the most valuable. According to Gemworld6’s price data, in 2016, a 2-carat Myanmar ruby of premium quality with no
“TUTTI FRUTTI” BRACELETIMAGE SOURCE:
WWW.FORBES.COM
who was given an engagement ring, which features a 4-to-5-carat Myanmar pigeon’s blood ruby.
Ruby Price:
2016 USD 36,000
2021USD 47,50032%
MARKET WISE
17
JEWELRY WITH BIG 3: RUBIES, SAPPHIRES, AND EMERALDSIMAGE SOURCE: WWW.ZADOK.COM/THE-BIG-3-PRECIOUS-GEMSTONES/
7 At an auction of Sotheby’s in 2015, a 25.59-carat Myanmar ruby ring, called “The Sunrise Ruby”, was auctioned at around USD 30.42 million or USD 1.18 million per carat. It was considered the most expensive ruby in the world.8 During an auction by Sotheby’s in 2014, a ring featuring a 27.54-carat Kashmir sapphire was sold at USD 5,984,474 or around USD 22,000 per carat.
MYANMAR RUBY RING “THE SUNRISE RUBY”
IMAGE SOURCE: WWW.GEMROCKAUCTIONS.COM
Blue sapphires are the most popular among all sapphires. Kashmir sapphires (India) are the rarest and the most valuable because there has not been any excavation for over one century. They are followed by sapphires from Myanmar, Sri Lanka (Ceylon), and Madagascar. Fancy color sapphires—yellow sapphires, pink sapphires, and padparadscha--have been increasingly popular as well.
Sapphire Price:
Large untreated emeralds, which are extremely rare, are highly sought-after among investors. Emeralds from Colombia are the most expensive owing to their bright green color with fair clarity. Their green color is the most popular in the world. Emeralds from the source are followed by emeralds from Brazil and Zambia.
Emerald Price:
Generally, a good quality sapphire of 2-3 carats will be priced at around USD 1,600 – 2,000 per carat. According to Gemworld’s pricing data, in 2016, a 2-carat good quality untreated Myanmar sapphire was priced at around USD 8,480. In 2021, its price reached USD 8,750, a 3.18% increase from 2016. A high-quality sapphire may be priced over USD 10,000 per carat8.
enhancement was priced at USD 36,000. In 2021, its price went up to USD 47,500, an almost 32% from 2016. Best quality rubies can fetch the highest price of more than USD 1 million per carat7. Value of good quality rubies from other sources such as Madagascar, Mozambique, and Tanzania have also increased. During the past 2 years, ruby price has doubled.
2016 USD 8,480
General QualityUSD 1,600-2,000
2021 USD 8,750
High Quality USD 10,000
Colombia Brazil Zambia
3.18%
MARKET WISE
18
Gemstone Trading Outlook
According to data from Cision PR Newswire, in 2020, global gem and jewelry trading value was around USD 366,700 million. It has been anticipated to go up to USD 451,600 million in 2026, or an average yearly growth of 3.5%. Though gem and jewelry business continually expand, maintaining business to sustainably stay in the market needs keeping up with buyers’ changing behaviors as follows.
1) Flourishing online shopping
In the past, gem and jewelry traders were not seriously interested in online trading. However, the pandemic has forced them to fully sell online as most buyers have turned to online shopping. Consequently, e-commerce has flourished greatly. According to Emarketer, in 2020, global e-commerce
Nowadays, natural emeralds are priced from USD 200 to 18,000 per carat, depending on quality and origin. According to Gemworld, during the past 5 years, prices of a good quality emerald of less than 8 carats have not changed much. In 2021, price of an emerald of 8 carats is at USD 9,500, a 6% rise from the price of USD 8,750 in 2016.
It is clear that the Big 3 colored stones have been highly valued until today. Their value is likely to soar in the future as production has decreased while demand has constantly risen, especially demand for high quality untreated colored stones.
2021USD 9,500
2016 USD 8,750
Natural emeraldsUSD 200-18,000
Gem & Jewelry Trading value
Online jewelry sales in the US market surged
75%
2020USD 4.213
trillion
25.7%
Global e-commerce retail sales
2025USD 7.385
trillion
6%
retail sales was at USD 4.213 trillion, a 25.7% increase compared to that of 2019. It has been expected to reach USD 7.385 trillion in 2025.
A report of Bain & Company states that in 2020, online diamond retail sales jumped 20%. In addition, a report of Mastercard stated that during the first half of 2021, online jewelry sales in the US market surged 75%, compared to the same period of the previous year. E-commerce and online customer correspondence will become more essential for gem and jewelry business.
2) Searching for Information Before Purchasing
Currently, buyers usually need knowledge on products of their interests, especially expensive gemstones. They often look for online information before deciding to buy products. Thus, it is necessary to carry out information communication with customers through popular platforms—
USD 366,700 million
2020
2026USD 451,600
million
MARKET WISE
19
A RING WITH EMERALD AND DIAMONDS FROM ETHICAL AND RESPONSIBLE SOURCE.
IMAGE SOURCE: WWW.TAYLORANDHART.COM/US/
In conclusion, consumption of the Big 4 gemstones in 2021 has been gradually recovering owing to purchasing power of the world’s key gemstone consumer markets, which are the US, Europe, China, and India. Consumers are likely to buy more larger gemstones. Though, online gem and jewelry product shopping has been growing, some consumers often look for online information and visit a retailer to have a look at expensive gem and jewelry products in person. Therefore, online and onsite marketing needs to be implemented simultaneously. Providing vital product information should be emphasized more. In order to raise customers’ confidence, a certification from a credible laboratory should be offered. Finally, entrepreneurs should adjust their business operation for transparency, environmental and social responsibilities. These factors are considered challenges and opportunities for gem and jewelry business sustainable expansion.
Instagram, Facebook, and YouTube. These mainstream online platforms are commonly used worldwide.
3) Growing Ethical and Sustainable Consumption Trends
Before deciding to buy gem and jewelry products, younger generations increasingly consider gem and jewelry business’ ethics and sustainability as key factors. According to the 8th Diamond Insight Report of De Beers titled “Sustainability: Shaping the Future of the Diamond Sector”, surveying opinion of 8,400 consumers in the world’s 7 major diamond consumer markets--the US, China, India, the UK, France, Italy, and South Africa, it was found that around 60% of the consumers considered sustainable factors before buying a product. More than 80% of the consumers were influenced by their peers in choosing green and socially responsible products. It was also found that fine jewelry products were the third most bought products, following food and clothing. They were bought primarily based on sustainable factors. As for diamond jewelry, considering sustainability is the major factor for consumers in all of the markets.
Demand on ethical and sustainable gem and jewelry consumption has been increasingly influential and will soon become mainstream. In the future, gem and jewelry industry will have to be able to produce alluring products with materials from transparent and green sources.
MARKET WISE
GDP of Key Economic Countries and Economic Recovery Rankings
Key Economic Countries with High Proportion of Millennial and Gen Z Population
2022F20212020
Millennial Population Ratio Gen Z Population Ratio
1
2
3
4
5
6
7
8
9
10
1
2
3
4
5
6
7
8
9
10
Australia
USA
Germany
Japan
UK
China
France
Italy
Russia
India
World
Australia
China
France
Germany
India
Italy
Japan
Russia
UK
USA
-2.4
-3.4
-4.6
-4.6
-9.8
2.3
-8
-8.9
-3
-7.3
-3.1
3.5
6
3.1
2.4
6.8
8
6.3
5.8
4.7
9.5
5.9
4.1
5.2
4.6
3.2
5
5.6
3.9
4.2
2.9
8.5
4.9
7
11
12
16
17
18
19
23
25
28
5.87
344.30
12.46
16.70
356
10.81
21.85
34.82
14.69
73.30
22.76%
23.80%
19.02%
19.89%
25.44%
17.92%
17.33%
23.87%
21.49%
21.96%
5.10
270.7
12.42
13.14
397.80
9.22
18.28
24.11
12.59
68.80
19.78%
18.72%
18.96%
15.65%
28.43%
15.28%
14.50%
16.53%
18.42%
20.61%
Economic Recovery Rank
2021
Age range of millennials: 1981-1996
Age range of Gen Z: 1997-2012
https://www.beresfordresearch.com
SOURCE : www.imf.org SRI Macroeconomic Resilience Index
SOURCE : https://worldpopulationreview.com
Population Ratio (%)
Gen Z Population (million)
Millennial Population (million)
20
GLOBAL ECONOMIC DATA
21
1
2
3
4
1
2
3
4
1
2
3
12
GLOBAL TRADE STATISTICS
Source: Global Trade Atlas (Jan-Sep 21), yearly amount forecasted by The Gem and Jewelry Institute of Thailand (Public Organization)
World’s Gem and Jewelry Export Value Ranking
World’s Polished Precious Stone Export Value Ranking
World’s Polished Semi-Precious Stone Export Value Ranking
World’s Silver Jewelry Export Value Ranking
World’s Gold Jewelry Export Value Ranking
Switzerland
United States
Hong Kong
Thailand
Hong Kong
United States
Switzerland
Thailand
Hong Kong
United States
Thailand
India
China
India
Thailand
Italy
Switzerland
China
Hong Kong
Thailand
103,073.54 million USD
83,773.26 million USD
69,654.89 million USD
9,425.61 million USD
2,062.03 million USD
1,295.08 million USD
514.99 million USD
440.61 million USD
358.06 million USD
184.01 million USD
149.66 million USD
141.07 million USD
2,549.81 million USD
2,180.59 million USD
1,545.01 million USD
982.69 million USD
10,603.46 million USD
10,391.15 million USD
8,640.43 million USD
1,512.19 million USD
19.48%
40.05%
2.02%
47.63%
152.11%
50.32%
5.47%
31.77%
31.71%
7.29%
6.11%
27.66%
260.55%
9.84%
10.51%
53.39%
31.42%
42.89%
47.02%
26.45%
Rank
Rank
Rank
Rank
Rank
1
2
3
18
1
2
3
4
14.05%
11.42%
9.50%
1.29%
36.33%
22.82%
9.07%
7.76%
25.81%
13.27%
10.79%
10.17%
24.93%
21.32%
15.10%
9.61%
13.47%
13.20%
10.98%
1.92%
Jan-Dec 2021F
Jan-Dec 2021F
Jan-Dec 2021F
Jan-Dec 2021F
Jan-Dec 2021F
Change (%)Value (million USD) Share (%)
Gemstones in Therapeutics
The term 'gem' is derived from the Latin word 'gemma,' which means a rare and durable valuable stone or jewel. Gemstones have been used as jewelry and adornment in significant places since ancient times, often in combination with valuable metals. They were also used as amulets to fend off misfortunes and evils. In addition, they were used to treat ailments. People nowadays want to use gemstones in physical and mental therapies in addition to wearing them as jewelry to demonstrate their taste and status.
Gemstones for Healing
Purchasing Gemstones
Ruby is a key gemstone of the corundum family. It helps treat blood circulatory system. It is believed to be able to clean toxins from the blood; stimulate the lymphatic system, adrenal glands, kidneys, reproductive organs, and spleen; and warm up the blood circulatory system, which, subsequently, reduces menstruation abnormalities and discomforts and lessens menopause symptoms. People who were having problems with love believed that it attracted surrounding people and they would get affection and kindness. The gemstone also helped enhance wearers’ inner strength, power, and courage.
Spinel, particularly of red color, is the most popular among all colored spinels. It is used to relieve body pains and swelling; reduce muscle inflammation; and support treatment of joints, muscles, bones, and teeth. It is also used to heal symptoms concerning nervous system, reduce exhaustion and depression, eliminate nervousness and anxiety, rehabilitate mental conditions, and boost physical vitality.
Citrine is a quartz-family gemstone. It is believed to have therapeutic properties. It can alleviate illnesses such as heart disease as well as disorders concerning abdomen and alimentary system; stimulate the digestive system; eliminate irritations; and promote healthy skin, nails, and hair. Moreover, the gemstone is rich with solar power, which drives away fears and desperation and brings light and prosperity to its wearer.
Fire opal is an orange or fiery red gemstone that is used to strengthen kidney function, cure lower back dysfunctions, balance brain irregulartities, solve hair, bones, teeth, and nails problems, control insulin production; and prevent food poisoning. In addition, the gemstone also heals confused mental state by increasing composure and improves memory.
Spessartites, also known as spessartines, is a garnet gemstone that range in color from yellow orange to red orange. In terms of health, it is believed to help stimulate blood circulation, increase physical energy, boost brain functioning, ease body aches and discomforts, cure arthritis, relieve pains from myositis and amyotrophic lateral sclerosis, and mitigate and heal respiratory tract symptoms such as pulmonary emphysema and asthma. Furthermore, the gemstone boosts confidence and reduces fears.
Hessonite is a garnet gemstone that ranges in color from yellow to brown-orange. It is believed to help heal various skin diseases, liver disease, eye problems, lymphatic system abnormalities, and hormonal symptoms; improve bone-marrow; mitigate arthritis; and enhance vitamin A absorption in the body. It is also used to alleviate nervous system symptoms, lessen various phobias and personality disorders.
1. Color: It is recommended to consider color contrast, consistency, and saturation as key aspects.
Cleaning and Caring Gemstones
• It is not recommended to wear gemstones while doing activities that may cause damage to gemstones such as cooking and cleaning as stains could stick on gemstones’ surface causing them to tarnish.
• Gemstones can be cleaned by using jewelry cleaning solution mixed with mild liquid soap and brushing them thoroughly with a soft-bristle brush. Finally, wipe the gemstones with a gentle clean cloth and allow them to dry or blow dry.
• Each gemstone should be kept separately to avoid scratches. Gemstones should be stored in a cloth pouch, or a box lined with soft cloth. 4. Carat weight: A gemstone carat weight increases its price.
2. Clarity: Orange, red, and yellow gemstones should not distinctively show brown hue. If there is any, it should be minimal. Importantly, good quality gemstones must contain minimum fissures, cracks, and scratches with no distinct inclusions. Gemstones with optical phenomena, for instance, pleochroism, cat’s eye, and asterism, must be clearly visible.
3. Cutting: Cutting greatly influences gemstones’ beauty. Their brilliancy is enhanced by proper cutting. Facets should be distinct and symmetrically arranged. Polished gemstones should not be too thick or too thin. This is because gemstones which are cut too thick will be dull whereas gemstones which are cut too thin will possess slight to no brilliancy.
The 4Cs should be considered while shopping for gemstones since they impact gemstone quality and pricing.
22
GEM & JEWELRY GUIDE
Gemstones in Therapeutics
The term 'gem' is derived from the Latin word 'gemma,' which means a rare and durable valuable stone or jewel. Gemstones have been used as jewelry and adornment in significant places since ancient times, often in combination with valuable metals. They were also used as amulets to fend off misfortunes and evils. In addition, they were used to treat ailments. People nowadays want to use gemstones in physical and mental therapies in addition to wearing them as jewelry to demonstrate their taste and status.
Gemstones for Healing
Purchasing Gemstones
Ruby is a key gemstone of the corundum family. It helps treat blood circulatory system. It is believed to be able to clean toxins from the blood; stimulate the lymphatic system, adrenal glands, kidneys, reproductive organs, and spleen; and warm up the blood circulatory system, which, subsequently, reduces menstruation abnormalities and discomforts and lessens menopause symptoms. People who were having problems with love believed that it attracted surrounding people and they would get affection and kindness. The gemstone also helped enhance wearers’ inner strength, power, and courage.
Spinel, particularly of red color, is the most popular among all colored spinels. It is used to relieve body pains and swelling; reduce muscle inflammation; and support treatment of joints, muscles, bones, and teeth. It is also used to heal symptoms concerning nervous system, reduce exhaustion and depression, eliminate nervousness and anxiety, rehabilitate mental conditions, and boost physical vitality.
Citrine is a quartz-family gemstone. It is believed to have therapeutic properties. It can alleviate illnesses such as heart disease as well as disorders concerning abdomen and alimentary system; stimulate the digestive system; eliminate irritations; and promote healthy skin, nails, and hair. Moreover, the gemstone is rich with solar power, which drives away fears and desperation and brings light and prosperity to its wearer.
Fire opal is an orange or fiery red gemstone that is used to strengthen kidney function, cure lower back dysfunctions, balance brain irregulartities, solve hair, bones, teeth, and nails problems, control insulin production; and prevent food poisoning. In addition, the gemstone also heals confused mental state by increasing composure and improves memory.
Spessartites, also known as spessartines, is a garnet gemstone that range in color from yellow orange to red orange. In terms of health, it is believed to help stimulate blood circulation, increase physical energy, boost brain functioning, ease body aches and discomforts, cure arthritis, relieve pains from myositis and amyotrophic lateral sclerosis, and mitigate and heal respiratory tract symptoms such as pulmonary emphysema and asthma. Furthermore, the gemstone boosts confidence and reduces fears.
Hessonite is a garnet gemstone that ranges in color from yellow to brown-orange. It is believed to help heal various skin diseases, liver disease, eye problems, lymphatic system abnormalities, and hormonal symptoms; improve bone-marrow; mitigate arthritis; and enhance vitamin A absorption in the body. It is also used to alleviate nervous system symptoms, lessen various phobias and personality disorders.
1. Color: It is recommended to consider color contrast, consistency, and saturation as key aspects.
Cleaning and Caring Gemstones
• It is not recommended to wear gemstones while doing activities that may cause damage to gemstones such as cooking and cleaning as stains could stick on gemstones’ surface causing them to tarnish.
• Gemstones can be cleaned by using jewelry cleaning solution mixed with mild liquid soap and brushing them thoroughly with a soft-bristle brush. Finally, wipe the gemstones with a gentle clean cloth and allow them to dry or blow dry.
• Each gemstone should be kept separately to avoid scratches. Gemstones should be stored in a cloth pouch, or a box lined with soft cloth. 4. Carat weight: A gemstone carat weight increases its price.
2. Clarity: Orange, red, and yellow gemstones should not distinctively show brown hue. If there is any, it should be minimal. Importantly, good quality gemstones must contain minimum fissures, cracks, and scratches with no distinct inclusions. Gemstones with optical phenomena, for instance, pleochroism, cat’s eye, and asterism, must be clearly visible.
3. Cutting: Cutting greatly influences gemstones’ beauty. Their brilliancy is enhanced by proper cutting. Facets should be distinct and symmetrically arranged. Polished gemstones should not be too thick or too thin. This is because gemstones which are cut too thick will be dull whereas gemstones which are cut too thin will possess slight to no brilliancy.
The 4Cs should be considered while shopping for gemstones since they impact gemstone quality and pricing.
GENGEN
BUY
Younger Consumers: the Key Drivers of Jewelry Demand
Platinum Guild International (PGI), conducted a survey regarding future consumption trends. The survey found that millennials and Gen Z will become leaders in jewelry consumption as their consumption confidence grows and they like to buy jewelry as gifts. Jewelry consumption by millennials and Gen Z in China, India, and the US is expected to increase by 78%, 68%, and 63% respectively, by 2022.
Cryptocurrency Influence in Diamond Jewelry Market
Usage of cryptocurrency as an exchange medium has been growing. Many businesses in foreign countries have begun to accept bitcoin, a cryptocurrency, in product and service trading, for example, Tesla cars in the US; OpenHouzz, a Spanish real-estate website; tuition fees of University of Nicosia in Cyprus; and Franck Muller’s Steampunk Limited Edition Encrypto Watch, limited edition products of 250 pieces. As for jewelry industry, diamond jewelry products of Reeds Jewelers, a long-established American jewelry retailer, can be ordered online with payment in bitcoin. Meanwhile, Sotheby’s in Hong Kong held a diamond jewelry auction and accepted cash and bitcoin as payment. However, owing to a Chinese authorities’ directive prohibiting bitcoin currency transactions, the auction postponed acceptance of cryptocurrency payment. Nevertheless, the event marked the first step toward cryptocurrency transactions, which may eventually lead to its acceptance in gem and jewelry trading in the future.
Robot Dog: A Technology for Miners
Robots are now replacing human labor in a variety of sectors because they can reduce production accidents and losses. In diamond industry, De Beers, one of the world’s major diamond producers, has been conducting a trial of a robot dog, called Spot, to work in Gahcho Kué, a diamond mine in Canada as it can work under dire conditions and low temperatures. Many jobs have been assigned to robot, including climbing stairs; opening doors; hauling vehicles; detecting gas leaks; capturing still images, videos, and thermographic images; and monitoring fire detection systems. So far, the results have proven that it can function well with humans. The technology will most likely be employed more in the future.
Jewelry consumptionis expected to increase by 2022
Increased by 78%
Increased by 68%
Increased by 63%
23
Global Update
GLOBAL UPDATE
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Gem and Jewelry Information Center, The Gem and Jewelry Institute of Thailand (Public Organization)
140 ITF Tower Building, 1st-4th and 6th Floor, Silom Road, Suriyawong, Bangrak, Bangkok 10500, ThailandTel: (662) 634 4999 Ext. 444 Fax: (662) 634 4999 Ext. 436Website: http://infocenter.git.or.th E-mail: [email protected]
Luxury Market Begins to Recover
Bain & Company reported that the Covid-19 pandemic has been dissipating. As a result, in 2021, personal consumption of luxury products reached USD 324.01 billion, a 29% increase over the value in 2020 when the pandemic was at its peak. The 2021 value increased 7% from that of 2019 before Covid-19 outbreak. Luxury products consumption increased 24% and 7% respectively, compared to that of 2020 and 2019. The growth was mainly owing to sales gained through e-commerce. Moreover, unisex jewelry obtained considerable popularity. Bain & Company also predicted that in 2025, personal consumption of luxury products will increase around USD 412.17 – 435.06 billion.
Synthetic Diamond Market Could Continue to Grow
According to Transparency Market Research, the synthetic diamond market will develop at a compound annual growth rate of 7.2% from 2019 to 2027, with a market value of USD 34.3 billion in 2027. The prediction aligns with the forecast of Allied Market Research which has anticipated that in 2030, synthetic diamond market will hit the value of USD 49.9 billion. It also forecasted that from 2021 to 2030 the market will achieve a compound growth rate of 9.4%.
All Eyes on US and EU Inflations
The US and EU have been battling Covid-19 crisis, which has forced business sectors to restructure or close down. The scenario has resulted in a rise in unemployment and decrease in output levels. Consequently, product prices constantly rose. This could cause economic stagflation. After each country has lifted its lockdowns, consumption grew. However, with insufficient production capacity, product prices climbed. The Federal Reserve forecasted that consumer price index will reach 7%, while the European Central Bank has anticipated that consumer price index will be at 4.1%. The consumer price index rates of the markets are likely to increase constantly and lead to hyperinflation, which will weaken demand for luxury products as well as Thai gem and jewelry exports to the markets.
From 2019 to 2027
From 2021to 2030
In 2027 In 2030
Compound annual growth rate of 7.2%
Compound growth rate of 9.4%
Market value
Market value
2021
2025
Personal consumption of luxury products
34.3billion
USD
49.9billion
USD
USD 324.01 billion
reached
USD 412.17 – 435.06 billion
will increase around
4.1% 7%31 December
2021
GLOBAL UPDATE