Emeralds Revisited – New Arrivals, New Origins and A Word about Treatment

I haven’t talked about emeralds for some time and with the Las Vegas Gem Show coming up I should do so, as I plan to focus a little more on this somewhat neglected stock item of mine.  You will see more of the May birthstone listed this June - belated as is somewhat typical of me when it comes to birthdays.

So, let’s start with origins.

Colombia: my absolute favorite, always.  They have the grassiest green color of all the greens, not minty, ranging from light to dark greens, with the medium warmish tones being the nicest.  The lighter colors (often just termed “green beryl”) are more affordable but also need to be cleaner than the darker or they don’t look good.  Supplies in Colombia, from what I understand, are actually pretty good, but well in the hands of the Colombian government and gems are being trickled out to keep the market tight.  My source for these is Vinod Kotahwala, as previously disclosed, an AGTA member and wholesaler who has had connections to Colombia since the 1960s and his supplies are steady. 

Light Green Colombian Emerald

Afghanistan: these have a very bright and happy green, very open color and don’t come in darker tones as far as I know.  I can get these in small sizes only -  those supplies are hard to get and they are very expensive at more than $1000/ct for even very small stuff.  The good news is that I know a supplier who has a small amount of untreated ones – Dudley Blauwet.  They come in small rounds and, some princess cuts.  

Afghanistan Emerald Princess Cut

Zambia: Zambian emeralds have more of a minty green tone and they are not as warm as Colombian emeralds.  They are also a little cheaper.  I saw a really well cut parcel of lighter round stones this week that I was eyeing for a custom project which has since fizzled.  It was going to involve Paraiba, yum.  I have photos here of the project with lighter and darker Colombian emeralds.  I could purchase some of these if anyone’s interested; sizes ranged from 4-5mm, prices were $700/carat.  However, these are more heavily oiled (this is as far as I go with treatment).

Zambian Emeralds

Brazil: these are my least favorite in color because they are darker green and the inclusions are often darker piques as opposed to the whispy white feathers in Colombian material. However, these have the most typical emerald color seen on the commercial market.  When I first started my Etsy business in 2009, clients on the internet were less informed than they are now and many didn’t want the Colombian color because it didn’t look like emerald, although fortunately, that’s changed now.  Generally, I don’t buy Brazilian material but I certainly can upon request.  It is cheaper than Colombian by about 1/3.

Treatment: there are two treatments on the market for cut stones that are employed to various degrees - Oil and Opticon.

Oil: traditionally Cedarwood oil was used, now it is often baby oil.  Baby oil is a petroleum product and is therefore synthetic (sorry little babies) so that’s why sometimes lab reports are coming out as saying that emeralds have synthetic or modern treatment. For an acceptable treatment – in my opinion – the oil should not contain dye, and it should be lightly used – an AGL classification of “faint” or “insignificant” is ideal in my opinion.  If I do go with a heavier use of oil I will disclose this and you’ll see either “lightly oiled” or “heavily oiled” in my description.  The Zambian emeralds I saw had heavier oil.  As to which oil is used, that is not something I can easily discern.  Light oil is often used for safe storage as well, and almost all emeralds will show at least some residue.  The most prized emeralds in terms of value should show minimal oil treatment in a lab report.

Opticon: this is a plastic polymer resin that is injected into the gem.  It is permanent, unlike oil, but it can yellow with age.  I never buy opticon treated emeralds, because I try to avoid treatment whenever possible.  But it’s very common, it’s always disclosed (at least with AGTA members where it’s the rule) and if you are looking at any emeralds where you are not sure just ask. 

Here’s a link to emerald treatments from IGS (International Gem Society) I thought was pretty good: https://www.gemsociety.org/article/just-ask-jeff-are-all-emeralds-treated-and-what-is-your-opinion/

For a more technical discussion, go to GIA for this article: https://www.gia.edu/gems-gemology/winter-1999-classifying-emerald-clarity-mcclure

Naturally, we currently stock some emeralds in the shop.

We have a lovely pair here

and some jewelry here

and here

And what about the little red sister of emerald, Bixbite?  Stay tuned for listings and social media during our upcoming SALE.

LAS VEGAS – A New Trip, New Adventure, Last Chance to Snag Our Loaner Gems

It’s that time again!  In a little less than 3 weeks I’m leaving on my trip to the AGTA and JCK Shows in Las Vegas for more gem sourcing.  As always, I am happy to take pre-orders for gems so please email us if you are interested!

What's New this Year: 

I’ve set up an appointment with Sergey, my Russian demantoid connection, who will be exhibiting at JCK. He’s bringing more smaller sizes of demantoids for me this time, especially 2mm and 2.5mm, and I’ve also requested some in the 4mm range as that seems to be what most of what you guys are interested in.  But I’m also switching out larger pieces I had on memo.

Same with Dudley Blauwet, my contact for Ceylon sapphire and Burma spinel.  Expect some fresh inventory there, and please do tell me what you are interested in so I know what to source.  Kornerupines are not likely to be refreshed, I’m going to have to make do with what I have here as there’s no new material on the market.  Last time I checked with Steve from New Era Gems in April, all the rough had been sold.  I know one supplier that still has some but I will only get them on request as everyone is holding on to what is left, now that interest in this rare gem has gone up.

Regarding spinels, I still have Vietnamese and Burmese materials that I held back from the last trip and you’ll see these put up on sale starting Memorial Day weekend.

Emeralds: I have neglected those a bit as of late, and plan on stocking up!  There will definitely be Colombian materials, and if I can manage, some of the bright green Afghani gems too!

Tourmaline: A new shipment of Namibian materials has arrived with my supplier already, you will see some of those in the shop soon...

Benitoite: With the renewed interest I am seeing in my shop, I am gunning for more slightly larger pieces as well as more melee sizes.

Red Beryl: Haven’t had those lately but some untreated melee sizes are coming up.

Paraiba: Again, a new shipment is expected and I have an appointment already, but this shipment is very small.  However, I am still holding back some stock acquired earlier.  So for now there is still stuff, just not as much as before. 

Lastly, there’s been an interest in more precision cuts lately, and you will definitely see those in the shop. 

Now, one other thing that’s important.  As you probably know, some of our inventory is on memo – on loan, that is, from other suppliers.  That material gets switched out periodically, suppliers want back what doesn’t sell, and there’s no point in it sitting in my shop.  So what I thought I would do this time is supply you with the list of these for you to decide if you’d like any before they go “back home”.  Gems are on sale till Sunday and then once again starting memorial day.  There will be a flash sale in the meantime on some older inventory, but not on anything on this list.

Sapphire matched pair: 

 Sapphire pears: 

and 

and this one: 

Sapphire oval:

Sapphire round:  

and Round Pair

Aquamarine baguette matched pairs: and 

This aquamarine pair

Mint tourmaline round:

Cobalt spinel oval: 

Pink sapphire oval: 

 

Lagoon tourmaline: 

Pink tourmaline pear:

Green tourmaline emerald cut:

Demantoid pear suite:

Demantoid round: 

Demantoid pear: 

Demantoid cushion: 

Enjoy and stay tuned on our social media channel for news and videos!

What is Retail and Wholesale Pricing – Really? An Unofficial Opinion

You must have asked yourself this question as well.  What (on earth) does it mean when someone tells you that their pricing is wholesale, or retail for that matter?  Technically, “wholesale” pricing just means the price charged to a wholesaler (from a manufacturer, for instance), and “retail” pricing means the price charged to retail clients (for example, from a wholesaler).  But how much is that?

When you consult web resources for various markup formulas, you will see that how much more you should charge is somewhat subjective.  Aside from your production and overhead costs – which can be high if you own a brick and mortar shop - and your expected earnings you also have to look at the competition for your product.  As a result, some companies double their total costs, some companies triple them.  In the wholesale industry, a markup of twice the total cost is a good average.  By contrast, if you are a well established and highly regarded retail outfit, like Cartier or Tiffany’s, you can charge even more than triple – though don’t forget that those companies also offer an exceptional sales experience as well as exceptional and reliable products with a good resale value.  When you are the “iddy biddy” neighborhood store or Etsy seller, your markup has to be lower.  My jewelry markup is about 2.5 times the production cost, not including overheads or what I pay my assistants (so closer to x2 if that’s figured in).  Sometimes it’s less, sometimes a little more.  Luckily, I don’t have a brick and mortar store to maintain, so my overhead costs are lower – and I do pass these savings on to the buyer.  My production costs are higher however since I do small volume and production is in the United States.

How does markup work in the gem trade?  Here’s what I have learned in the past almost 10 years in gem and bead buying. 

Wholesalers, by which I am going to mean gem dealers and members of the trade such as the ones that vend at AGTA, GJX and other gem shows, or those who work via internet and phone only, have less than a double markup on average.  Unless their gems are specialty cut or one of a kind, your average run of the mill stuff is priced closer to 30-50% up, at least for parcels.  For individual gems it can be more since that requires processing (boxing, measuring, making labels, etc).  It’s not necessarily much higher, however.

Shot of our friends @primagems at the AGTA Wholesale Show in Vegas. Photo taken from Ganoksin Blog 

Retailers, by contrast, have to figure in more customer service such as photos, internet listings, as well as one on one service.  And since they are more likely to sell one stone at a time, they have to figure those costs in for each stone, not for a parcel or larger amount.  Most of my buyers purchase one stone at a time, a pair, or a few small stones, from my shop – they never buy parcels.  That means that I need to process gems by the piece (pretty much), doing measurements and photos for every single stone.  At a wholesale show, when I buy from parcels, I do this work as the buyer, not the seller, and I can also buy (and often do) a bunch of gems from the same parcel, which are then weighed and priced together.  That is more work for me, but less work for the seller, hence the lower markup. 

In short, the difference between wholesale and retail has more to do with the quantity of gems purchased and the labor provided for that quantity.  It is less a matter of formula – even less of a matter of whether or not a buyer has tax ID.  So when I get a query for a “wholesale” price from a jeweler who wants to get one stone under $100, I am far less likely to provide a discount than I would be for a loyal retail client who has spent thousands in my shop but who is not a wholesaler or jeweler.  By the same token, if a retail buyer travels overseas to a gem mining location but intends to only buy a couple of gems , and will only make one purchase, that individual is just as unlikely to get a wholesale price overseas as they would be here.  In fact, they are more likely to be ripped off due to inexperience and due to the fact that many less developed countries have no buyer protection.

Prices for gems are also strongly determined by supply and demand.  Real estate is the best example for a comparison.  The same house, brick for brick, or plank by plank, can cost $50,000 in location A and $500,000 in location B, where the value of the parts is insignificant as a factor in the price difference.  Rather, it is that nobody wants to live in location A and everybody wants to live in location B.  And when supply of housing is not unlimited (it seldom is), prices go up.  In order to determine if one pays too much for a house, or in order to determine what an asking price should be, one studies not the house in isolation but the house compared to other houses like it in the same market.

A fun illustration showing the wholesale (large quantity) vs. retail (small quantity) dynamics 

It is the same in the gem industry.  For some gems, supply really is nearly unlimited (i.e. Brazilian amethyst, white topaz).  In those areas prices might just be determined by labor and other overhead costs.  For any gem where supply is not unlimited but there is a demand – so exempting rare gems that nobody wants to buy – the price very much depends on how many similar gems there are and how these are priced.  In short, gem dealers study the competition for their gems and will price according to what the market will bear.  Often that is not as much as one hopes, but at times, it is also rather shockingly high.  Cobalt spinel is a case in point.  For some rare gems, there is just sufficient demand but almost no supply that the price is just about only a matter between what the seller wants and what the buyer will pay.  Large Benitoite is a good example.

Cobalt Spinel from our Etsy shop

Also, prices can fluctuate when an area is mined out but demand is still high (i.e. Mahenge spinel, Mahenge Malaya garnet).  Or prices can jump up fast when demand goes up and then level out when it is discovered that supply is not that bad (this is often the case with sapphire).  Sometimes prices start out low, then demand increases suddenly and the prices jump drastically, then the market is saturated and prices drop back down (I believe that Grandidierite is an example – I am going to verify this on my next trip to Africa).  Sometimes there are government restrictions, civil unrest,  a change of government etc, and all this will affect pricing, which can end up being quite volatile when we are looking at small amounts.  Current examples are a recent shift in government in Tanzania, export issues in Mogok (affecting ruby and spinel) and export problems with Russia (affecting demantoid).

What should you take away from this?  When you shop, study prices on the internet, as best you can, look at gems in person at gem shows or wherever opportunity presents itself, but also work with someone you trust – we all have to do that, not just you as retail buyers but also us in wholesale because you can’t always test everything, and large amounts of money and product have to change hands safely.  In the final analysis however, for me it is easiest to work with an educated customer for a smooth and easy transaction.  “The more you know…” as they say on TV.