Pricing of “New normal” Gemstones, explained.
Pricing of Gemstones 2020-2022
Up until 2020, when the gem shows were running, mines were active, jewelers were hungry and the world was flourishing, I was able to buy Gems at 50-60% lower cost.
What happened during the pandemic? First of all, the gemstone business seemed to be frozen for a while. There was no activity over fine gems with us personally, and our business dropped 90% down of normal. Later, as people began to get accustomed to the new state of affairs, new stones started to appear in the market. However the asking price for those new stones was already higher than my selling price, can you imagine that?
The dealers explained this ”new normal” price with reasons like:
1) all the mines are closed and there’s no mining
2) new fine stones are extremely rare
3) the demand is extremely high as there’s not enough supply in the market
4) because people like me hold onto their finest goods and don’t want to sell them as there’s no substitution for the money earned.
Above all and worst of all, those “new normal” stones I was offered were not even close to my quality: not clean, not perfectly cut, not the perfect shade of color, far from “Gem Gem” as we call it. Not to mention that the selling price of my stones includes the charges of keeping and serving them, sometimes up to 25 years, and you know how much it costs simply to keep your stones safe.
All in all, after I have studied few stones offered to me during the 2 years of pandemic, I was forced to adjust my old prices accordingly simply to be fair to the market and not to embarrass other players. Moreover, in order to validate myself, I even managed to buy some of those newly offered Gems at those “new normal” prices. Yes I stretched very hard but what else could I do - the rare beautiful stones are only getting rarer! And the prices will be only getting higher, naturally.
We all have to adjust to this new reality, no matter on which side we are: buying or selling. As a professional with 35-year expertise, I find it essential to put my own money into both transactions, and to see how it feels. Frankly speaking, it feels good when I look at my old collection compared to the new stones I’m being offered. So I’m in no hurry to dump away my finest Gems to end up with no equal substitute. And you know that unlike most dealers, I spend profit from selling my gems to buy even more gems, equally precious.
Lately though we’ve been spending profits to help the people of Ukraine, but that’s just another indispensable part of my heart, just like the gems are. That’s why this time I’m especially happy to sell my Gems (unlike during the two covid years) because I need to generate money to donate to my country. So I am very open to your offers - I’m sure we can come to a reasonable conclusion. I just want you to understand where we come from in the gemstone pricing, where we’re standing right now and where we’re heading.
And how was your own shopping for fine gems lately? Did you manage to buy anything exceptional at the price you like?
Please share your thoughts and let’s see if your appreciation of Fine Gems has changed over these two years.
We donate all profits from online sales of Yavorskyy Gems and Books to help the people of wartime Ukraine