A captivating gemstone grabbed headlines at the Sotheby’s Magnificent Jewels sale in New York this past December. The 16.53-carat Brazilian alexandrite was the center stone of a ring that sold for $1.9 million ($116,152 per carat), setting a record auction price for the color-changing mineral.
It was impressive but not surprising, according to industry insiders, considering the strong demand for rare stones that dominated the market in 2024. Wholesaler Omi Gems observes that the year’s top performers were alexandrites, rubies and Paraiba tourmalines.
Dealers who specialize in colored stones are entering 2025 in optimistic spirits. “The market for colored gems in 2025 looks strong, with retail demand in the US expected to remain robust, particularly for rare and high-quality stones,” says Anup Jogani, owner of Jogani in Silver Lake, California.
More precious than diamonds?
The ascent of colored gems is directly linked to the challenges the diamond industry is facing, stone dealers say. Although diamonds still represent the majority of jewelry sales, color is increasingly capturing market share thanks to consumers’ desire for novelty and collectors’ desire for a more reliable investment.
“I think the upheaval in the diamond industry right now is helping color,” says Eric Braunwart, president and CEO of Columbia Gem House in Vancouver, Washington. He cites the controversy over Russian diamonds and the embattled state of lab-grown as two factors undermining the sector in favor of the color market.
Leibish Polnauer, whose New York- and Israel-based company, Leibish, deals in fancy-color diamonds and colored gems, says the latter category outperforms the former. “Gemstones are selling at a higher price than a year ago, while polished diamonds have gone down…. High-end jewelers make a margin on gemstones of about 80%, but for fancy-colored diamonds, the retailer’s margin is about 40%.” In the bridal segment specifically, he adds, the market share of colored gemstones rose to 15% last year.
Many see colored stones as a safe haven in uncertain times. High-value clients at Joseph Gad have been looking into investment-quality gems as “a way to hedge many of the other assets they currently hold in their portfolios,” reports Gabriel Ammar, the New-York based company’s vice president of global operations. Known as a leading supplier of Colombian emeralds, sapphires and rubies, the firm has seen stones of over 10 carats become the most covetable among savvy investors.
At the Swiss Gemmological Institute (SSEF), 2024 confirmed a more substantial interest in colored gemstones over diamonds, especially untreated, high-quality specimens, says Laurent Cartier, the lab’s head of special initiatives.
Beyond the traditional Big Three — rubies, sapphires and emeralds — high-jewelry houses and independent designers often feature Paraiba tourmalines, black opals, spinels, and garnets. “Recent auction results and campaigns by maisons show that these gems are becoming increasingly noticed by the public,” reports Cartier. “It’s one of the reasons we decided to offer free online courses on some of these gems.”
The cost of success
The desirability of colored material has caused sharp price rises, with dealers noticing increases of over 10% to 20% in the last decade and skyrocketing highs during the Covid-19 years, starting in 2020. Supply limitations and restrictions in mining operations are driving these prices, as is “the growing demand for specific types and sizes, and stones that have traceability,” explains gemology consultant Erica Silverglide, founder of New York-based company GemologyGeek.
Price hikes affect every stone category, from fine and extra-fine to lower and mid-tier goods, according to data from GemGuide, a leading gem-pricing and market information provider. Its editor in chief, Brecken Branstrator, says price resistance was already growing among the trade last year, becoming most apparent during the September Hong Kong show. “However, supply is still low for most materials…so with a few exceptions, we don’t expect prices to drop any time soon.” Still, she adds, the Tucson gem shows “will be the ultimate test for that.”
A proactive attitude is key when it comes to keeping up with pricing. “Current pricing is strong but stabilizing in everyday goods, while higher-end and finer stones have increased and will continue to increase dramatically,” says Jeremy Chalchinsky, director of sales at Color Source Gems in New York. “If you want a fine stone, buy it today rather than waiting, because chances are, it either won’t be available or the price will be higher.”
Digging deep into the problem
The current challenges of the colored-stone market are not that novel for veterans. “Color is generally produced by artisanal miners and smaller operators,” Braunwart points out. “You may have a supply for six months, and then you don’t see anything more for the next six months.”
With the exception of emeralds and rubies from large mining companies, sourcing colored materials is the biggest pain point for dealers. Increased mining costs — some report hikes of up to 50% since the pandemic — are another factor behind the rising prices, and on top of that, the mining workforce is decreasing.
The lack of funding, training and support for small mining communities poses a long-term threat to the industry, argues Michella Cruz, a graduate gemologist from the Gemological Institute of America (GIA) and a Van Cleef & Arpels sales advisor in New York. “Miners leave, looking for better pay and safer work opportunities. Gem cutters don’t have access to training and tools. There are already some great independent initiatives for colored gems and new ones where ideas are fermenting. But they need support, and we need more of it.”
As artisanal miners leave, more diamantaires are entering the colored-stone market, creating an even more challenging environment for established wholesalers. Other impediments include new bureaucratic regulations and rising worldwide shipping expenses.
‘More like art than a commodity’
Dealing with colored stones comes with a learning curve, says David Nassi, manager at Mya Nassi and president of 100% Natural, both gem suppliers in New York. “There is a lot of nuancing when it comes to quality and pricing, which can often be overlooked by a newcomer. Colored gems are more akin to art than a commodity, because there is no agreed-upon pricing list and small details can have quite an impact.”
In addition to the aesthetic draw of colored gems, the sector has a strong responsible-sourcing story to share, with a few trailblazers leading the way. One of them is Seattle-based Monica Stephenson, president of Anza Gems, which works with artisanal miners and cutters in east Africa. Stephenson is optimistic about the segment of “gemstones sourced very intentionally with a beneficial element [for the local communities],” and believes that “transparent stories really resonate with designers, retailers and the end customer. Competing on price or physical attributes alone doesn’t really move the needle.”
Rising stars: From greens to oranges
Which stones are most likely to rule in 2025? With green achieving a near-consensus among dealers as the most popular shade, many are predicting that emeralds will be the year’s star gem.
“Emeralds, especially from Colombia, could see a surge in demand, supported by increasing awareness of their origins and sustainable mining practices,” says Jogani.
Sapphires in teal and green, which are among Columbia House Gem’s best sellers, are getting a lot of attention. Chalchinsky at Color Source Gems has seen huge demand for Montana and green sapphires in the last two years, and says the trend shows no sign of abating.
“Montana sapphires are still some of the market’s strongest players,” agrees Branstrator. “This year, I think we will see Australian sapphires be even more popular, with their interesting blues and greens, and especially as bicolor stones grow in popularity with buyers.”
One gem with a history of falling into and out of favor is the spinel. Today, it is enjoying a revival. Bangkok-based Vasily Aydov and Alexandra Floyd, sales managers at Gemstock.org, highlight the neon-pink Mahenge spinel from Tanzania as a rising star. Aydov also points to Vietnamese cobalt-blue spinels as “strong competitors to sapphires, appealing to collectors seeking untreated, vibrant stones.” At the softer end of the palette, gray and lavender spinels appeal to consumers as well, says GemologyGeek’s Silverglide.
Unconventional stones such zircons in natural browns and oranges, as well as yellow chrysoberyls, are set to gain momentum. And a strong penchant for vibrant orange shades makes garnets and topazes in that hue a hit.
“Spessartite garnet was one of our best sellers of 2024,” reports Nassi, while Cruz cites the super-saturated Fanta garnet as a standout.
“In 2024, we had stable demand in imperial topaz in the better orange-reddish colors,” affirms Constantin Wild, managing director of the eponymous gem dealer in Idar-Oberstein, Germany. “I expect this trend to continue in 2025.”
Main image: Opals from Color Source Gems. (Color Source Gems)
The synthetic issue
Synthetic colored stones have been available on the market for longer than their diamond counterparts and are generally considered a harmless subcategory. However, a rise in cases of synthetics getting mixed in with natural gems could change this feeling of security.
The problem appears to affect small goods more, says Columbia Gem House’s Eric Braunwart, who has been investigating the topic. But because the industry is experiencing a shortage of natural stones, he warns, the issue could become more acute.
“It opens the door for some of the less-ethical players to decide, ‘Well, let’s slide some [synthetics] into the natural parcels,’” he explains. “It’s not a new issue in color, but I think it is something that the industry overall will need…to spend some more time looking at.”
Indeed, the undisclosed mix of stones is one of the most talked-about topics right now in the colored-gem industry, says Monica Stephenson of Anza Gems and Moyo Gems. “This issue really highlights the importance of knowing origin and trust in traceable sources.”
