May 2006
Some Tips for Buying Gemstones
On a long summer road trip with my two young daughters, out of the corner of my eye I spied a beautiful red English sports car with a "For Sale" sign on the dashboard. I quickly turned our car around to view the sports car. The road was narrow and the shoulder dropped off quite a bit. As I approached the sports car, my rear wheel dropped into a ditch with a thud. With some effort I brought the car to a stop. Nonetheless, I got out of my car and hastened to view the sports car. To my great disappointment, I found that it was a replica. I was deceived, and to this day my daughters remind me of the danger to which I subjected them---only to find a fake rather than a genuine sports car.
I get frequent requests for a "flawless, fully-saturated, bright red genuine Mogok ruby weighing 3 or more carats" . . . with a price range of $3,000-$4,000 per carat. Flawless, red, fully-saturated, genuine Mogok rubies in excess of 3 carats are extremely rare and are so highly valued that most owners would part with them only reluctantly.
To illustrate the point of cost: in 2006, an 8.5 carat Mogok red rough ruby, possibly VVS grade, sold for $400,000 (wholesale, uncut). A rare red, fully-saturated Nan Ya ruby also 9 carat, sold for $450,000 (wholesale, uncut). When cut, each of these stones will weigh approximately 3-4 carats. Dealers expect to sell each stone for twice their acquisition price, which would be $150,000 to $200,000 per carat. Such prices are out of the range of most buyers, especially those expecting to pay $3000-$4000 per carat. A suitable alternative for a buyer who desires a red stone would be a fine red spinel, either from Mogok or the Nan Ya mines. Sizes up to 5 carats are available. The prices for this type of gem range from $1000 per carat upward.
Regarding clarity: the diamond industrty has burnt into our collective memories the aura of flawless or near-flawless gems. Rubies and sapphies are "Type 2" stones---amost always having some inclusions visible when viewed under high magnification. As a matter of fact, a flawless ruby is highly suspect, because the identifying inclusions are not present. Customers should look for VS or SI grade rubies and sapphires (eye-clean). Inclusions themselves are fascinating works of nature that should add to the allure of the stone. Small amounts of rutile that may be seen under magnification add a velvety texture to a stone, which overall enhances the stone's beauty.
News Update from Burma:
Production of ruby at Mogok and Nan Ya has declined, but from time to time some fine rubies have been found. Production from the Mong Hsu ruby mines continues to decline, although there is still plenty available for purchase. Thai dealers continue to buy large quantities of rough, although the Chinese are beginning to show interest also.Jade production has stayed stable or increased. The number of jade lots offered for sale at auction has increased dramatically, and additional auctions are being held throughout the year. Very little maw sit sit is being offered, apparently because jade brings such a fine price that miners ignore or bypass the maw sit sit that is found nearby.
Painite continues to be found aroung Mogok, so prices have dropped. Still most material is opaque, dark, and shows red color under an intense light source. Mineral quality crystals are still available for less than $500, and nearly transparent crystals are selling for less than $1000.
