Published May 2009

By Stuart M. Robertson, GG

The corundum market has experienced volatility during the past few years. Prices in several varieties including ruby, blue, purple and orange sapphire have risen. However, the one standout has been the roller coaster ride of the pink sapphire prices. Interestingly, pink sapphire was once considered quite rare. Prior to the discovery of pink sapphire on the Island of Madagascar in the late 1990s, the industry’s main sources were Burma and Sri Lanka. And neither produced large amounts of this color.

During the past 15 years, pink sapphire prices have fallen by almost half their value and then more than doubled again. In 1995, the GemGuide price range for an extra fine pink sapphire in the 5 to under 7 carat range was $3,500-$5,000.  In the Fall/Winter 2000 edition, this same category was priced at $1,800-$3,000 per carat. In the 2005 edition, prices were $2,000-$3,200 and in 2007, prices were $4,000-$5,500. In the current edition, prices for this same category are $3,200 to $5,000. (Information on the GemGuide pricing publication can be obtained by clicking on the link at the end of this article.)

The fact that the gem industry had a significant deposit of pink sapphire hitting its peak during the early part of the decade probably was the single most important factor. As previously reported, the Madagascar sapphire deposits near Ilakaka was a prolific producer of blue and pink sapphire. Although it has been debated whether this material rivaled the pinks of Sri Lanka, most dealers agree that Sri Lankan buyers were one of the largest consumers of the Mada pinks.

Several events helped to drive the attention that pink gems such as sapphire enjoyed during the early part of this decade. Early on, many dealers attributed this to the “J-Lo effect” (Jennifer Lopez). The popularity of pink gems coincided with the pink diamond engagement ring the singer sported briefly. However, the staying power of the trend had more to do with the fashion industry’s embracing of the pastels during a healthy part of the past decade. Although pink is still a hot color—pink spinel is one of the strongest sellers in an otherwise quiet market—pink sapphire has certainly slowed. The single most important factor in that regard is simply market saturation. The sheer quantity of pink sapphire production from Madagascar triggered a strong market with pricing that was initially very favorable to consumers. Prices escalated on demand and pink sapphire jewelry was everywhere. Eventually, prices simply rose too high for the current market as the economy slowed and a correction was inevitable.

For more in-depth articles on the gem industry and reliable wholesale pricing, order a GemGuide subscription. For the fastest appraisal software in the industry, guaranteed to save you time and money, fully integrated with pricing and all weight formulas, go to GemGuide Appraisal Software..

Back to Previous Page