Lockdowns of gemstone cutting centers during intense COVID outbreaks directly affected production and demand, creating supply chain and market disruptions. Rising fuel prices and increased equipment repair and replacement costs made mining more expensive. Migrant workers missing in most African countries, including Madagascar.

A shortage of labor heavily influenced the mining excavation. The COVID pandemic has shaken most of the foundational aspects (excavation, cutting, retail, and marketing) of the gem industry in ways that are difficult to model and assess. The prices at this most important ruby auction had exceeded the previous Gemfields ruby auction by 35–50% in less than 6 months.

One Bangkok-based experienced gemstone buyer had to increase his offer by 20% above his normal offer that he would make at the auction to find out that he could not even get a single lot. Selected lots were made available for in-person and private viewings by customers in Bangkok, Dubai, and Jaipur. Meanwhile, Gemfields reported that the latest auction delivered an all-time high of US$ 88.4 million for the Montepuez Ruby Mining (MRM) Limitada’s ruby auctions. The gemstone prices had increased by about 50% from March of 2020 to mid of 2021. He discovered that the prices he sold his inventory in Bangkok for were below the asking prices to purchase new stones at the source and that he couldn’t replace sold stones with profits he made. It worked very well, until the end of 2021 when restrictions were lifted for a short period of time, and he went to Sri Lanka and Colombia to replenish the inventory of sapphires and emeralds. Usually, he would exhibitĪt many Gems & Jewelry shows, but since trade shows have been canceled throughout the pandemic, gems were simply shipped to existing customers for viewing and selection. “Gem business was good during the pandemic”, one well-known Bangkok-based gem dealer explains. The scale of the change in the value of colored gemstones that occurred in the last year (2020–2021) compared to 10 years ago is unprecedented, especially for high-value rubies, sapphires, and emeralds. What is driving the increase in gem prices?

Ruby and sapphire gemstones