"The price of sapphire has gone up a lot? Compared to rubies and emeralds, it's still a long way off."
This is what Altaf Iqbal, president of FACETS Sri Lanka, an international jewelry fair held in Colombo, Sri Lanka's largest city, told me during an interview on January 7. Many people think of "Cylonti" when it comes to Sri Lanka, but in the jewelry industry, it is the hometown of Sapphire. The British royal family owes much of the Sapphire's position as one of the world's most beloved gems. When former Princess Diana Spencer's Sri Lankan sapphire engagement ring was officially moved into Kate Middleton's hands in 2011, the price of high-quality sapphires around the world skyrocketed. From that day on, the Sri Lankan expedition was on my bucket list, and I was finally able to realize the Sri Lankan bucket list that I experienced with five senses from mines to distribution sites with the start of the new year of Gapjin. We borrow this page to share the essence of the 2024 Sri Lankan Sapphire that we have in our feet, eyes, ears, and hands.
Sri Lanka, formerly called Ceylon, is the world's oldest sapphire producer with a history of 2,500 years. It has the largest number of jewelry mines compared to its area to the extent that it is nicknamed the "Jewel Box of the Indian Ocean." 25% of the total land area has the potential to produce jewelry, so it deserves to be called a blessed land. It is a real-life treasure island with 75 to 80 types of colored jewels, including not only sapphires but also Cats Eye, Tourmaline, Moonstone, and Quartz. Sri Lanka is also home to top-notch giant sapphires such as "Giant of the Orient (466 carats)," "Logan Blue (423 carats)," and "Blue Bella of Asia (400 carats)." For this reason, when it comes to "silon sapphire," it is often referred to as "high-quality sapphire." Once famous, sapphires in Kashmir and Burma are now rarely found in the market, and most high-quality sapphires are mined in Sri Lanka and Madagascar. Sri Lankan sapphires show clear and bright characteristics compared to other mountainous areas, to the extent that the Bible also describes "the transparency is like celestial bodies."
Another attraction of sapphires is their colorful colors. In addition to blue, it boasts a rainbow spectrum such as pink, yellow, green, and purple, which the industry calls "fancy color sapphires." In particular, paparacha sapphires, which are subtly mixed with pink and orange, are popular among collectors for their scarcity and unique color. Blue sapphire is a single gem with the most colorful jokes, and there are dozens of commonly used terms, such as light blue, corn flower blue, peacock blue, and royal blue, depending on the brightness and saturation. Shezmin Mansour, a third-generation sapphire family in Colombo, said, "There is a high preference for Intens Cornflower Blue and Royal Blue worldwide. However, in 2023, pink, purple, yellow, and orange were all very popular." Meanwhile, more than 95% of sapphires in circulation today are heat treated to improve color, transparency and gloss. It is a positive practice in terms of diversity of choices, but for the sake of market order, whether or not it is handled must be disclosed. In addition to 4C (color, transparency, cut, carat), the price of sapphire varies depending on whether it is processed, shape, special effects, and distribution status.
The most surprising thing about this visit to Sri Lanka was the mining environment and sustainability level. Strict regulations and strict licensing were being implemented to protect the ecosystem and minimize environmental impacts. Mining in Sri Lanka is 90% down to small artisan miners, who use non-autobiographical work, or simple tools and techniques. Machine work is only allowed in areas where manual work is difficult. As the majority of the gemstones are located on farmland, work in rivers has recently been banned to prevent damage to waterways and crops. Foreigners can obtain mining licenses in cooperation with local partners, but the number of licenses and annual export quotas are limited.
Sri Lanka's mining project is a structure in which landowners, mining licensees, and various people who provide mining operations and equipment participate to share profits. The mining site in Ratnapura I visited was also operated on a small scale by local residents, so I felt a clear sense of community. Miners spare no effort from days to weeks to find a handful of sapphires, but they have considerable pride in mining rare and beautiful natural resources. Meanwhile, the sapphire industry has also faced serious challenges due to a series of bad news in Sri Lanka over the past few years. During the pandemic, output fell markedly as skilled labor shortages and difficulty mining with old equipment. To make matters worse, in 2022, mining costs soared due to unprecedented inflation and currency depreciation in the face of state bankruptcy, leading to a rise in gemstone prices. In response, the government is implementing fiscal strengthening policies such as introducing electricity rationing and doubling taxes. In addition, the economy seems to be recovering little by little due to financial support from the International Monetary Fund. Currently, foreign buyers have resumed their visits and jewelry exports are normalizing. I don't know how many years it will take to completely overcome, but the jewelry market in Ratnapura that I visited on this day was coming to life.
In order to understand Sri Lanka's sapphire market trends, I met Altaf Iqbal, president of 'Fath Sri Lanka' and 'Sri Lanka Jewelry & Jewelry Association (SLGJA), in person in Colombo.
Q. What kind of event is Facet Sri Lanka?
This year marks the 30th anniversary of the International Jewelry & Jewelry Exhibition held annually in Colombo. It is a platform that introduces colorful jewelry, including the most famous blue sapphire, and shares innovation and trends in the industry.
Q. What are the major markets and trends of Sri Lanka Sapphire?
Traditionally, the United States and Europe are the largest markets, but the pattern has changed in recent years as China has emerged as a big hand. Currently, China is the market with the highest demand for medium-quality sapphires. Top-notch non-heating sapphires are also moving from Europe to the Chinese market. However, in a situation where supply is insufficient compared to the increase in demand, China is diversifying its import destinations to Madagascar. The United States imports a large amount of medium and low-quality standardized stones, and India also occupies an important position in the sapphire market. Korea is in high demand for heat treated stones and royal blue colors. Overall, demand for sapphires is increasing due to the downturn in the natural diamond market and the influence of the younger generation who prefer color. In addition, investment demand for high-quality sapphires is expected to expand further as the U.S. tightening finances are expected to be virtually ended.
Q. If you have any advice on how to deal with sapphires that are becoming an issue?
Over the past few decades, sapphires have also developed a large number of treatment methods in conjunction with the development of new production areas. In fact, heat treatment in general is an essential technology to make mined sapphires a marketable commodity and expand their choices at various price points. However, lead glass impregnation and diffusion treatment may be problematic in terms of durability and safety, so care should be taken. Facet Sri Lanka prohibits the trade of treated and synthetic stones except heat treatment. This is a strategy to preserve and protect the image of historical origin. Since not all variables can be completely excluded, it is recommended to obtain a report from a reliable appraisal agency when purchasing.
Q. How accurate is the Korea Appraisal Board to determine the country of origin?
The origin of sapphire plays an important role in the marketing process. However, different appraisers may have different results. Some sapphires distributed in the market from Kashmir or Burma are often found to be from Sri Lanka. It is important to do business with a reliable company, and it is preferable to choose based on color and quality rather than relying too much on the country of origin.
Yoon Sung-won, a jewelry columnist and adjunct professor at Hanyang University
He is a jewelry specialist and adjunct professor of jewelry department at Hanyang University Graduate School of Engineering, covering all fields such as history, trends, auction investment, design, and marketing of jewelry. The books include .
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