Thursday, 28 February 2013

Prices of Blue Topaz - Where do they stand?

The Tucson show just ended - on a high note I heard? Red and Blues were the favorite colors of buyers, amongst from Japanese, Americans, and the Chinese?

Valentines already passed and Tucson show just ended - still Red was one of the favorite colors of the worlds biggest Gems & Jewellery show? We are here to talk about Blue Topaz prices fluctuations or rather One sided inflation - towards the sky.

1) Blue Topaz has its mines in Srilanka (Top quality), Nigeria (Lower Quality) , India (Orissa), United States, and the biggest of all Brazil.
2) The recession in the United States of America.
3)The recent (2007) NRC problem in importing Blue Topaz into the USA.

These are all the reasons why the prices of Blue Topaz have shot up really high. Let me explain each point in detail for my readers to understand this cause.

NUMBER ONE.

"The mines in Srilanka died out early 21st century, around 2005 (Since we are one of the biggest importers of White topaz we would know this fact), the production started reducing around 20% every year from the year 2000, and finally at present in 2013, there are almost neglectible amount of White topaz coming from Srilanka"

                                                          - Suresh Agarwal, Managing Director at NavneetGems.com

The orrissa Mines in India also died out around the same time, as production from there completely stopped around 2007. United states of America has mines of White topaz, but prices are expensive, and are used locally by the Jewelers, not enough for the exports. The only place where White Topaz Rough could be mined was Brazil - and because of tremendous demand of White topaz from Brazil, the prices shot right up as the Nigerian mines could only be used to produce Sky Blue Topaz as the White topaz would be of lower quality.

NUMBER TWO

The recession in the USA meant demand of Luxury goods went down. This meant all the "small" dealers of Topaz were wiped out as prices dropped and those small companies would focus on other profitable products. This mean just a few companies left in the market as Dominant suppliers of Topaz - we were one of them. Left with no market choice, prices increased because of this reason (Oligopolistic)

NUMBER THREE

The Nuclear Regulatory Commission always imposed some sort of restrictions, and made sure that the Blue Topaz' level of radiation is not harmfull for their consumers. But in 2007, the NRC made these rules very strict and this made a huge buzz in the industry and all Jewelers stopped their orders of Swiss Blue Topaz and London Blue topaz from companies abroad. Even Navneet Gems had an order of 3,000 pieces of 8 mm Cushion checkerboard I remember, to the QVC, but we had to pull off and stop our production. Thank god - we had the capability to stock it then, so we could hold them. Since USA is the biggest importer of Blue Topaz, our sales and everyone elses sales went down. The same result as "Number two" took place. All the small sellers couldnt survive. And today the prices are up because the market is under big companies' hands.

These are the reasons why the prices of Blue Topaz rough as well as ready goods have gone up by 40% more - in the past 6 months. S

"Something that we sold for 5$ a carat, is today roughly between 7$-7.5$ per carat even at wholesale prices"

-Suresh Agarwal , Managing Director at NavneetGems.com
 

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