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Wilson Yuen, president of the International Colored Gemstone Association (ICA).



  Asian gemstone market growth expected through 2017, says ICA president


January 12, 2013


"The Asian colored gemstone markets are likely to continue growing strongly for the coming five years," said Wilson Yuen, president of the International Colored Gemstone Association (ICA). He was speaking at the GIT 2012, the 3rd International Gem & Jewelry Conference in Bankgkok, Thailand, in mid-December.

Yuen said that he expects prices to follow the upward rise of gold prices even more than diamonds since they represent an alternative in luxury consumption. The value is driven by luxury brands as well as the public-listed companies such as Gemfields and True North Gems, with their aggressive "mine to market" marketing strategies

Yuen said that he believed that the growth model for the Chinese market would be similar to that of the United States, with products in the lower-to-middle price ranges most popular, but with the increasing consuming strength of the middle classes mid-to-high-priced products will also see good growth.

Thailand, he observed, maintains its position as the top supplier of colored gemstone to the United States, Hong Kong, Italy, Germany and Japan, but Thailand's growing economic status could soon disqualify it for tax exemption when exporting gems to the United States. In this respect, Thailand is likely to face competition from Cambodia, which is likely to take advantage of its customs-free status.

Vietnam, Yuen said, is rich in sapphire, rubies and spinel, but output is limited. Laos is a source of sapphire, and both countries have the potential to develop their production capacity.

With a reform process underway in Myanmar, and the promise of the continued relaxing of the economic sanctions that has been imposed against the country, growth can be expected in the Burmese gem industry, he stated.

Singapore is providing stronger competition to Hong Kong for the high-end gemstone and jewelry market, and is helped by the fact that both Indonesia and Malaysia use Singapore as their primary financial platform, he said.

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