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Figure 1

  Ruby Prices: Is the Party Over?

by Menahem Sevdermish FGA D.Litt. and Guy Borenstein, FGA
May 20, 2013


Ruby dealers remember 2012 as a year of dramatic price rises. Increases of several percentage points per month were not uncommon, and, in a number of cases, at the high-end of the spectrum, gems doubled in value during the year. But the past five months have seen changes. Is the price-fest over?

We decided this month to look at the movement in ruby prices this year through toward the middle of May. For this purpose, we referred to the GemeShare™ gem database, containing more than $40 million worth of colored stones, and extracted the current ruby price information. We then sorted them into categories, according to sizes (0.25 to 9.99 carats) and grades (GEM to C), to retrieve an average price per category. The average prices were then compared to the GemePrice™ price list to determine any discernible price tendencies.

Looking at Figure 1, we can clearly detect two inclinations, both which are associated with the quality of the gems. One involves the higher graded rubies, marked as "GEM," "AAA" and "AA," and the other containing the lower graded ones in the "A," "B" and "C" quality grades.

Overall, the higher quality rubies exhibit a price increases of up to 1 percent in the smaller sizes, up to the 0.33 carats. In larger sizes, 0.50 carats to 9.99 carats, prices rose slightly but consistently by approximately 1 to 2 percent.

However, it appears that the "AA" to "GEM" grade group is subdivided to two kinds of goods - Mozambique-originated rubies and rubies from other sources. Apparently, over the past several months, rubies from Mozambique have risen higher in price.

The interesting factor causing this increase is the change in the buyers' perception regarding the rubies from Mozambique. From being considered as unpopular low quality gems, regardless of whether they have a good color or not, they are developing a "high-quality" reputation, hence the stronger demand.

The lower-graded "A" and "B" quality gems behaved similarly. Both grade groups saw moderate price decreases of up to 2 percent for all categories. For the lowest quality C-grades, which are highly included, the price decreases more sharply, by up to 10 percent. Cabochon cuts suffer an additional price reduction of approximately 5 percent.

Another perceptible influence on demand was the the color moderator of the ruby, or its secondary hue. While "A"- and "B"-graded rubies with an orange moderator continue to be unattractive to buyers, probably because it is associated with the low-quality African gems, similarly graded stones with pink moderators have become widely accepted. This change in attitude can be observed also from the pink sapphire side of the color border, where prices are rapidly climbing.

These numbers suggest several interesting conclusions. First, prices of rubies of up to 0.33 carats show a slight (and almost insignificant) increase in the price regardless of their grade. Second, the real prices of the higher quality rubies, from 0.50 carats and up to 9.99 carat, tend to be slightly higher than those appearing in the currently published pricelists. Third and most important, the shortage of high quality Burmese rubies led to a sharp rise in the Mozambique rubies acceptance.

The bottom line is that the ruby price-fest is definitely not over. It still rages on, but with a change in venue. The focus now is on southeast Africa.

We will continue to monitor these prices and update you about any noticeable changes.

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