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The atmosphere at the Tucson gem shows this year was upbeat, but with a strong dash of caution. Most gem companies reported they had a good show — some even had an exceptional one — but even when sales were only humdrum, there was an unmistakable buzz of optimism.

"I feel for this show [business is] picking up," commented Herbert Schuster of Josef Schuster Inc. "I feel it in the air. The way people are talking is more optimistic. Let's hope it translates into fact."

"The traffic this year was serious traffic," said Pini Pinchasi of Harpaz Gem & Pearl. "They came with a list and had confidence; if they found, they bought. This gave us confidence for the coming year."

Inside the Gem & Lapidary Dealers Association (GLDA) Show.

Anecdotal evidence of better traffic was borne out by attendance figures. The American Gem Trade Assocation (AGTA) GemFair at the Tucson Convention Center saw attendance of 10,421 buyers, the show's highest numbers ever. Across the street, the Gem & Jewelry Exchange (GJX), saw nearly 19,000 buyers pass through their booths, an increase of around 30 percent from 2003. The third point on the downtown "triangle," the Gem & Lapidary Dealers Association (GLDA), reported attendance of about 15,000, up from approximately 10,000 the year before.

While traffic in general was good, buying still leaned to the conservative. There was a lot of the very limited, targeted purchases that had been typical of the past three years, but dealers also reported that their customers were buying to build their inventories, a positive sign of growth.

Buyers at the shows examine goods and look for the best deals.

Demand remained polarized: The best sellers were either the very top of the line in terms of quality and size, or inexpensive items with a quick turnover.

"Big stones are selling, not just calibrated," observed Douglas Mays of Wild & Petsch, "and in the real, real, light colors or the intense colors. It's opposite ends of the spectrum — nothing in the middle ground [in color or size]."

"People are looking for bang for their buck," said Robert Van Wagoner of Beija Flor Gems. "They want a big stone, and they want it as cheap as they can get it."

It's a truism that people always want a bargain, no matter what they're buying. But people were comparison shopping more than ever this year, unless the item was too unique to be compared.

Pink stones, like this pink tourmaline, were hot this year. Photo courtesy Groh + Ripp.

"I believe price points have been an issue," commented Michael Williams of House of Williams. "I have sold a few big pieces, but I think most people are looking for inexpensive goods."

No one gem dominated sales this year, with buying spread across the gem palette. Tucson is the place people come for new or rare items, and attendees were jumping on anything they hadn't seen before, be it a unique gem material, a new cut, or a new jewelry design.

Pastel colors were extremely popular, especially pink. Continuing a trend from last year, pink sapphire was one of the strongest sellers at the show, but just about any pink stone was moving, from pink tourmaline to morganite to kunzite. A greater supply of bubble-gum-colored pink opal was available, but there was very little of high quality.

High-luster Chinese freshwater pearls. Gems courtesy King’s Ransom, photo by Morgan Beard.

Orange, yellow, and green were a major color trend, with buyers seeking everything from yellow sapphire to citrine to spessartite garnet on one side of the color wheel and peridot, green garnets, and emerald on the other. Emerald dealers in particular were happy to see the market bouncing back after a few very slow years.

In pearl, buyers favored white in unusual shapes, but always with high luster. "Certainly luster is important," said Howard Levine of Euro Pearls. "If it's a bit off-shape, or a little spotty, that's acceptable — as long as it looks good, they can sell it."

Dealing Au Naturale

Dealers dig the beauty of unheated sapphire. Gems courtesy Bear Essentials, photo by Robert Weldon.

Tired of treatments, more dealers were going back to nature than ever before this year, offering certified unheated sapphire and ruby. While some retailers were quicker to embrace this idea than others — especially at a price premium of 30 to 50 percent — it's a strong niche market. With fine-quality unheated corundum being so rare, it may never be more than that, but the concept has strong appeal.

"I think the public is getting more and more aware that you can't consider treated gems on practically the same level you consider natural gems," said Menahem Sevdermish of Menavi International, which has begun to specialize in untreated gems. "It's a different platform, as you would consider leather goods and plastic."

Part of the appeal — not just for retailers, but for the wholesalers who have grown tired of dealing with new treatments — is the idea that the buyer knows exactly what he or she is getting.

"[Certifying heated gems] makes it easy for retailers to sell," explains Joe Menzie of Joseph M. Menzie Inc. "Their customers like that: They have a picture of the gemstone, the paper says it's natural. . . . Not that they know about treatments so much, but they might have heard something."

Not all dealers, however, were enthusiastic about selling unheated gems. Some pointed out that with the supply of good-quality, unheated sapphire and ruby so low, there was no way to fill a huge demand if retailers started buying large quantities. And the prevalence of heated gems has created unrealistic expectations for the price and color of unheated material. "Many people will ask [for unheated sapphire], and when they find out the difference in price, they say, ‘Well, I'll do heat treated,' " said Sid Tucker of Tucker Gems, who specializes in Sri Lankan sapphire.

Banning Myanmar

Will sanctions against Myanmar help the man on the street? Photo by Jay Boyle.

With an estimated 95 percent of the world's ruby originating in Myanmar (formerly Burma), the U.S. ban on Myanmar goods had the potential to strangle the supply of all ruby, at least in the United States. But a little over five months into the embargo, it was apparent that anyone who wanted to get around the law could easily do so. Only a tiny percentage of ruby is imported into the United States directly from Myanmar, and without a clear statement of Myanmar origin, gems of all types are given the green light.

The question became an ethical one: Should dealers voluntarily stop selling Myanmar gems? If they did, would it help the people who need it most?

"I think sanctions against Burma are a simplistic answer to a very complex problem," said Richard W. Hughes of Pala International, an author and corundum expert, at a panel discussion on the ban. "It's an illusion to say that sanctions against Burma are going to eliminate the human rights problem. [The government has] already shown they can live off the narcotics trade."

Another panel member, Brian Leber of Leber Jeweler Inc., argued that following peace talks with the rebel factions that control the gem-mining areas, "[the government in] Rangoon maintains unprecedented control over the gem trade." Much of the gems are sold through auction, and even the gems that are smuggled require bribes to government officials. "One way or another, this regime profits from these gems."

On the show floors, however, the consensus was that no one was paying much attention to the ban. Some dealers weren't even aware of it; others admitted, off the record, that they were simply bringing in Myanmar gems through other channels. As one exhibitor at AGTA put it, "If a Thai dealer comes up and shows you a beautiful parcel of Burmese goods, I doubt too many people would say no to that."

Not So New

“[Beads] are a risk, but you have to do something different sometimes. Nobody wants a cabochon at the moment.” — Juergen Schuetz, Dufty-Weis Opals Photo by Kevin Myers

There were no major finds introduced in Tucson this year, and cutters commented that there's a lack of rough on the market in general. Some people responded, as in previous years, by offering new innovations in cutting, combining gem materials, or dyeing or coating gems to give them a more eye-catching color.

Continuing a trend from previous years, gemstone beads were extremely popular. The new twist this year was offering gemstone beads in facet-grade material. With prices for gems of that quality much higher than your typical bead material, would buyers be willing to pay?

"There are a few people who understand," said Priti Shah of Prijems, who brought a wide range of facet-quality beads to the shows. "A lot of people are not ready for that kind of price point, but it's rewarding when people understand and they buy from us."

Golden star sunstone from Tanzania. Gem courtesy Tim Roark Imports, photo by Morgan Beard.

One interesting new material which was coming out in limited quantities was a feldspar from Tanzania, sold by several dealers as Tanzanian sunstone. Unlike sunstone previously discovered in Tanzania, which has hematite platelets that produce a "confetti" affect, this material was opaque, with colors ranging from gold-brown to black. However, when cut into cabochons, it produced either stars or cat's-eyes.

There were also some other new materials coming out in limited quantities: Out of Our Mines, for example, was offering several varieties of copper-based silicas, all varying shades of blue and green. Brazil Imports had a light green quartz from Brazil that came in sizes up to 28 by 22 mm calibrated. And although it wasn't new, a number of companies were featuring greater quantities of pezzottaite, the new variety of beryl discovered in Madagascar a little over a year ago.

While looming elections in the United States promised much uncertainty for months to come, buyers and sellers alike were facing the future with undaunted optimism. If Tucson sets the pace for the rest of the year, 2004 will be bright indeed.

March/April 2004 • Style: Fortune, Gods, & Gems • Selling: Tucson '04 Sets the Pace • Selling: Benched • Book Highlights - Alexandrite: The Stone of the Czars • Bonus: Hinduism • Bonus: Dos & Donts from the Bench Jeweler • News & Updates • In This Issue