Industry Analysis: Gemstone Report (Feb 2006)

As reported by GIA in February 2006, the prices for many types of gemstones are soaring.
We have seen this in previous years also. The purchase of rough one year can cost two times the cost of the previous year, and produce gemstones of smaller size and less desirable color. Gemstones faceted from the previous rough could therefore be priced far below current wholesale prices (replacement cost). This has been a problem that All That Glitters deals with on an annual basis - many of our gemstones are sold at or below the current wholesale cost to replace. It is a struggle to purchase the best rough at the best price when more countries within the world begin to seek out gemstones that they had not purchased in the past. Though most companies deal with the lower quality gemstones, the high quality gemstone prices do follow suit but hold their value in down markets or flooded markets. Some collectors and investors who had made purchases from All That Glitters in just the past one to two years, have seen their investment increase dramatically due to the increase of wholesale replacement costs.