Wed 5 Aug 2009
Supply and Demand of Precious Gems
Posted by Emilia under Gemstones
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Political instability and government both affect the availability of gemstones. The ruby mines of Myanmar (Burma) were annexed by military government, blocking a very central source of rubies. Rubies of the Thai-Cambodian border were then able to produce enough material to replace the supply from Myanmar. When gemstone color was inferior, contemporary heat treatments improved clarity and depth of color. This enabled Cambodian and Thai ruby sales to dominate the market. The presence of Khmer Rouge, followers of the Communist party in Cambodia, interrupted production from that country for a period of time. Today many mines in Thailand are wholly exhausted.
Diamonds still win the popularity contest for a fashionable engagement ring. Diamonds are currently sought after in many color variations, both heat treated and natural. Celebrity jewelry choices are a case in point. Blue Tanzanite, discovered in 1967, is mined in Tanzania from only one locality. Because of source diminishment, the perceived value of the rare stone continues to increase. ‘Buy now or it will be too late’ has become an important marketing tool in these cases.