EU Gem Market Strong in 2000

By Darren Arnold

< Sapphire (left), Cutting Edge Award winner from Justina De Vries, photo by Tino Hammid/AGTA; ruby (right), photo by John Parrish/AGTA.

BRUSSELS, BELGIUM - With 350 million people, the European Union (EU) is a potentially lucrative market for any trade to tap into, and the region's colored gem imports for 2000 show a promising upward trend.

While the overall import statistics for 1999 can certainly be described as healthy at 319.2 million euros (US$295 million), figures for the year 2000 jumped 10.8 percent to 353.8 million euros ($326.9 million). The EU widened its lead as the world's second-largest colored stone importer in 2000, less than half the United States' $705.4 million, but well ahead of Japan's $210.6 million.

 

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Although the EU remains a stronghold for the "Big Three" of ruby, emerald, and sapphire, other gems are gaining ground. The value of cut ruby, emerald, and sapphire imports were still more than double the value of other cut gems, with the value of cut Big Three gems rising 7 percent from 1999 to 2000 - mostly due to increases in Belgium, Italy, and Austria. "Other" gems are closing the gap, however, with their value climbing 16.7 percent to an even 100 million euros ($92.4 million) in 2000.

Looking a little more closely, figures reveal that France is still at the top of the list as far as sapphire, emerald, and ruby imports go, while Germany is the main importer of "other" stones as well as gem rough.

Interesting patterns also appear to be emerging in other EU countries. Take Belgium, for example, a country that is famous for its jewelry industry, particularly the diamond industry in Antwerp. While Antwerp diamonds are still enjoying good business on the international scene, domestic consumers have veered toward the less expensive colored gemstones; in 2000, Belgium was second only to France when it came to importing cut ruby, emerald, and sapphire. The total value of Big Three imports was 42.2 million euros ($39 million), 34.3 percent up on the 1999 total. Imports of rough gems have also gone up since 1999, with the figure for 2000 reading 2.8 million euros ($2.3 million), an increase of 86.2 percent.

There are one or two major reasons for the emergence of the non-diamond market in Belgium. Firstly, the recession that was experienced in the late 20th century led to a climate where customers would seek out less expensive products.

Top EU Gem Importers (All figures in millions)
Country	1999 Value (Value US$)	2000 Value (Value US$)	% Change
France	78.3 ($72.3)	78.8 ($72.9)	+0.6%
Germany	70.5 ($65.1)	78.7 ($72.7)	+11.6%
Italy	47.9 ($44.2)	63.3 ($58.5)	+32.2%
United Kingdom	57.1 ($52.7)	51.0 ($47.2)	-10.7%
Belgium	37.2 ($34.4)	46.2 ($42.6)	+24.2%

Money aside, the stigma attached to, and the greater awareness of, "blood diamonds" from politically unstable territories such as Sierra Leone and Angola has not done much for the image of the diamond industry, although the EU has moved toward banning the importation of such stones.

Another EU country that had notable success with color in 2000 is Italy. Italy is number three in the EU in overall gem imports, with a total gain of 32.2 percent over 1999. The biggest growth was in the "other" cut gems category, where Italy posted a 51.3 percent increase to 26.5 million euros ($24.4 million).

"The use of colored stones in the Italian market has dramatically increased," Italian gem dealer Paolo Valentini told the International Colored Gemstone Association congress in May. He pointed to the increase in imports in 2000, and said that in the first quarter of 2001 Italian imports went up another 30 percent.

What is happening in the gem market in Belgium and Italy can be seen as an indicator of what is happening in the EU as a whole. With economic parity being a prime directive of the EU, it should come as no real surprise to find some common ground in consumer taste among the member states. While France's ruby, emerald, and sapphire imports dwarf its consumption of "other" stones, even there non-traditional gems are getting more popular. As the economic turbulence of the United States puts other regions on the alert, more affordable, colorful gems may continue to rise in popularity.

Although full economic integration is some way off - indeed, not all countries have yet signed up for the single currency - the European Union represents a very healthy economic territory in the world colored gem market. It may be a competitive territory, but at the very least EU consumers have shown that they are willing to look beyond diamonds and the more traditional markets, and the gemstone trade has responded accordingly.