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Entering the middle of the month, June’s birthstone Alexandrite remains as elusive as ever. The emphasis must be placed on quality Alexandrite, not just the availability of any alexandrite. Many gemstones continue to see a reduction on the supply side. Over the course of the year, conversations between vendors, supplier, and customers have revealed many theories behind the market conditions.
First, mining and production has seen a sharp decline in gem quality and fine quality Alexandrites. The result being that the price of Alexandrite generally has risen since 2023.
Second, war has led to decreased consumer confidence as the middle east and Russia rage forward. Market sentiment is decreased. Often times, investors choose gold as hedge during wartime crises. The natural result being that the price of gold has steadily gone up this year. Furthermore, inflation remains steady, leaving cash shortages. Many of the leading suppliers are seeing less overall sales versus 2022 and 2023. An increase in inventory has contributed to the dwindling appetite to purchase commercial quality goods.
Third, US political elections have stoked concern for market stability. The Presidential Elections looms toward the end of the year, and questions regarding the direction of the economy remain unanswered. Many consumers and investors feel uneasy regarding spending on luxury items when the number one global super power has doubt about the leadership. Further civil unrest between Democratic and Republican factions contributes to the overall comfort level of traditional spending.
On a positive note, many Jewelry manufacturers saw positive results at JCK Las Vegas Jewelry Show. Retailers reportedly showed up in numbers, but were also cautions in spending large amounts, and opted for quality over quantity.
Personally, we browsed the AGTA gem section and overseas booths located at the JCK show, and it appears that alexandrite prices remain high.
A good barometer of the Alexandrite price is the Auction Houses. This week, a 1.94 ct Brazilian Alexandrite sold for around $15,000 per ct. (Figure 1 below)
And also in April of 2024, a 1 ct Brazilian Alexandrite sold for around $7,000 per ct.
Compare those to a May 2022 sale of a 2.80 ct Brazilian Alexandrite for $8600 per ct. and in 2023, a 2 ct Brazilian Alexandrite sold for around $12,000 per ct.
Sometimes, the absence of Alexandrite at auction is evidence of its scarcity. A careful search of Alexandrite at Sotheby’s and Christies shows a lack of 5 ct Alexandrites sold in the last 2 years. Last publicly sold 5 Ct Brazilian Alexandrite was sold in February 2023 for approxately $30,000 per ct (Figure 2 Below).
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