Loveis not the only thing in the air this Valentine's season; the sparkle of gemstone engagement ringscapturesmarketand eye of consumers, setting a new trend in the world of jewelry. According to Ankur Daga, founder and CEO of fine jewelry e-commerce company Angara, U.S. consumers are expected to break records by spending a staggering $6.4 billion on jewelry around Valentine’s Day, constituting 10% of the total annual spend.
The traditional landscape of engagement rings is undergoing a transformation, with a notable surge in larger center stone rings, thanks in part to the growing popularity of lab-grown diamondsand the allure of colored gemstoneslike sapphires and rubies. Daga remarks:
“„We’re seeing a shift in much larger center stone engagement rings, primarily as a result of lab-grown diamonds, and sapphires and rubies tend to be very hot.- Ankur Daga
A decade ago, only 5% of engagement rings featured colored gemstones, but now that number has more than tripled to over 15%. A survey commissioned by Angara revealed that over 20% of individuals would opt for a colored gemstone upgrade for their engagement rings if given the chance.
This gemstone trend extends beyond engagement rings, making its mark in wedding and fashion jewelry as well. Signet, a company behind jewelry brands like Zales and Kay, notes a particular rise in the popularity of sapphire, morganite, London Blue Topaz, aquamarine, and green quartzstones.
Brilliant Earth CEO Beth Gerstein suggests that the shift towards colored gemstones may reflect a customer's desire for a "more distinctive piece" and resonates with a personalized approach, especially among the Gen Z audience who seeks unique and reflective styles.
However, this increasing demand for gemstones coincides with a tightening supply of many natural gemstones. Quality concerns and restrictions on mining regions have led to rising prices and scarcity for stones like rubies, sapphires, and emeralds. Ankur Daga highlights the challenges, stating:
“„There’s only really one mine in Madagascar that produces the bulk of the world’s rubies.- Ankur Daga
As demand rises and natural supplies dwindle, wholesale prices for gemstones have seen substantial increases, with sapphires up by 12%, emeralds by 13%, and rubies by 17% annually over the past three years. Even more niche stones like pearls and opals have surged by over 20% each year, with tourmalines leading the way at a remarkable 36% annual increase.
Ankur Daga points out that this shift in supply and demand for gemstones has made them an attractive asset class. Investors are increasingly turning to colored gemstones as both an inflation hedge and a growth vehicle for their portfolios. Recent auctions by Bonhams, Sotheby’s, and Christie’s have shown strong investor interest, with over half of the gemstone lots selling above high estimates.
While lab-grown diamonds have captured a significant portion of the market, representing 50% of diamond engagement ringspurchased last year, the same cannot be said for colored gemstones. About 75% of customers shopping for colored gemstones still prefer natural options. Daga attributes this preference to the imperfections, or "inclusions," in natural gemstones that add character and uniqueness, qualities that lab-grown gemstones may lack.
The world of jewelry is witnessing a dynamic shift towards colored gemstones, transforming the traditional landscape of engagement rings and beyond. As demand rises, driven by consumer preferences and a quest for uniqueness, the scarcity of natural gemstones is pushing prices higher.
Investors, recognizing the allure of these vibrant stones, are turning to them as both a hedge against inflation and a promising addition to their portfolios. Whether driven by love, personal style, or investment potential, colored gemstones have emerged as more than just accessories