Assessing Value of Gems (Part 2)

3 More Gems Factors

The first 3 factors to understand and consider before you begin to assess the value of the gems are:

  • Beauty
  • Rarity
  • Durability

Read about the first 3 factors here!

 

Value of Gems

  • Demand

Because of the beauty and rarity of gemstones, there is a demand. In different cultures, there is a demand for different variety of gems.

For example, in the Asian culture, we value the imperial green jadeite-jade. 98% of jadeite-jade is produced in one mine in Myanmar, Pharkant. As the imperial green quality is very rare, the supply is hard to meet the demand. Hence, this material is highly sought after.

 

jade
Green Imperial Jadeite-jade is very sought after. One way to give more value to a piece of jewellery, yet still affordable, is to use smaller pieces of high quality jade.

 

Another example is diamond. “Diamonds are a girls’ best friend.” This slogan by the marketing agency of De Beers has popularized the use of diamond in an engagement ring so much that it created an in-flux of demand for diamonds.

diamond
2 oval yellow diamonds with 1.50ct D colour Diamond set in 18K white gold.

High quality diamonds like a 5 carat, D colour, Internally Flawless and excellent cut piece is rare and hard to come by.

 

 

  • Tradition

The royal crown jewels are an important set of jewellery because it tells the history of a nation. The royalties are an icon to the nation and perhaps even a role example for others around the world.

crown jewels
Imperial State Crown, UK Photo Source: https://en.wikipedia.org/wiki/Crown_Jewels_of_the_United_Kingdom

When Prince William and Prince Harry got married, the trend of using a blue sapphire and aquamarine for an engagement ring went up tremendously. During these seasons, the demand increased. Some quality-grades of the gems were very difficult to get too.

 

proposal ring
Emerald cut aquamarine from Afghanistan. Prince Harry’s wife, Megan Markle received an aquamarine ring for proposal.

 

  • Portability

This is an interesting factor. Portability can also be understood as “transportability”. Gemstones are small and lightweight. It is even better when set into a piece of jewellery. One can wear it and travel around the world (with insurance of course!).

24 carat Colombian Emerald worth USD120,000 can be worn from one place to another.

One of the stories that we have heard from our Director, Mr. Tay Thye Sun, happened in 1997. It was during the Asian financial crisis. A lady from Indonesia who looked really normal and unnoticed came into his gem testing laboratory.

She look a piece of diamond for testing and evaluation and found that it was about USD5000 at that time. She then went on to test another diamond of about 1 carat in weight. This diamond was evaluated to be worth about USD15,000 at that time.

The next thing we know, she took out a small pouch and poured out all the diamonds in that pouch. All in all, the diamonds in that small little pouch was worth a few million dollars (there were 5 carat diamonds too).

So now we can see how portability can affect the value of gems! In fact, gemstones are seen to be very good commodities to “invest” in to keep value because of this factor!

 

In Conclusion…

Knowing these 6 factors can then help you to understand the value of gems in a practical manner. In the 3rd part of this series, we will share with you some practical things you can do to gain market experience.

Singapore – A great place to learn and practice jewellery design

By Tay Kunming

With a myriad of courses available out there in the marketplace, selecting a course that’s both financially rewarding and beneficial to the local arts and culture scene can be a challenge. Why not learn jewellery design?

As a jewellery designer and craftsman, I’ve noticed that there’s one type of people who are willing to spend on gemstones: the ultra-wealthy foreigners, including the Chinese and Burmese, whose population exceeds one billion and 55 million, respectively. And with more than one million Chinese with assets worth over $1.5 million, the number of rich Chinese is increasing rapidly, according to China Business Review’s report ‘Understanding Chinese Consumers’.

Furthermore, Singapore’s positioning as a world-class tourist hub helps to boost tourist spending, hence learning and practicing jewellery design is ideal.

This year, I was invited to be part of the judging panel for The Singapore Jewellery Design Awards. Looking at the certificate of appreciation that was awarded to me by the design council, I am reminded that as a craftsman, I have to do my part to create more opportunities for the next generation, so they’ll have the right exposure. And as I was speaking to a group of 17 students from Raffles Design Institute the museum partnered to launch an up and coming project titled ‘Gems for Generation’ on 10 November, I am certain that I ought to do more to create a conducive environment for learning and sharing for our next generation.

But for now, here are a handful of practical tips I have to guide jewellery designers and aspiring jewellery designers.

  1. Build good relationships with your craftsmen. Without skilled workmanship, your impressive design is nothing; it’d would be very difficult to create a good design – unless you are able to design and craft gems.
  1. Cultivate your presentation skills. As a jewellery designer, you will need good presentation skills and great ideas so you can sell them to your clients. Unlike a classroom setting where you are required to stand in front of your class to present your concept, you are likely to be sitting next to a prospective buyer, surrounded by gemstones and, possibly, coffee, explaining your design while selecting stones to place on his/her hand. Again, without these skills, your gemstones will be left sitting on your shelves collecting dust.
  1. Open your mind to greater opportunities. In my personal opinion, Singapore is a relatively small market, so don’t be discouraged if your designs are not appreciated by your own people. Instead, open yourself to global opportunities. For instance, selling your designs to the Burmese. With a burgeoning 55 million population, it isn’t hard to find a window of opportunity. Start by researching on a market that you think (and know) will appreciate your works and find all means and ways to penetrate.

sjda_certificate-of-appreciationHere’s something I’d like to share and to encourage all readers (above)!