A glittering affair

The Facets 2014 exhibition, which concludes today, has again proved one fact: Sri Lanka’s gems and jewellery will continue to shine on the world stage, attracting buyers from all over the world. It is a good sign for an industry that hopes to achieve US$ 1 billion in export revenues by 2016. It is well on track, having already achieved the US$ 7000m million mark.

In this context, the Facets exhibition held for the 24th time has once again highlighted the potential of the local gem and jewellery industry. This year’s exhibition, organised by the Sri Lanka Gem and Jewellery Association (SLGJA), comprised over 150 booths with a variety of Gem and Jewellery items that include precious and semiprecious gems. This is a very important occasion that showcases our gem and jewellery to buyers from around the world. This exhibition and our reciprocal representation at foreign gem and jewellery shows are important to uplift the industry.

Man has always been fascinated by gemstones, precious metals and other such gifts of Nature that shine. These treasures of the Earth, from gemstones to gold, are literally worth a fortune. Indeed, this is why they are often associated with the word ‘precious’. Gems, diamonds and gold do shine on their own, but in the hands of experts they become flawless works of art treasured for generations.

Sri Lanka has always been known for its exquisite gemstones that have set many a heart on fire. Our island has practically all varieties of precious stones except diamonds and is one of the major exporters of gems and associated jewellery in the world. Gems sourced from Sri Lanka are showcased at some of the leading museums in the world, attesting to their timeless beauty and appeal. There is also a small but growing local market for trendy gem and precious metal based jewellery.

Overseas

Indeed, apart from the major companies dealing in gems and jewellery, Facets 2014 has enabled SME participants in the sector to rise and shine. Over 50 local SME companies participated in the event, showcasing their products to the world. Hopefully, the hundreds of overseas buyers who patronised the show would have forged lasting bonds with these companies.

This recognition accorded to the SME sector will bolster the industry in a land known as the blue sapphire country. Our gem industry has encountered certain difficulties because mining is still dependent on intensive manual labour, whereas other countries have more or less completely mechanised gem prospecting and mining. Moreover, the creation of artificial sapphires has also hurt the local gem industry, still based in the Ratnapura (literally Gem City) area. To their credit, our gem merchants have adapted to these changes and even ventured overseas to countries such as Madagascar to explore their gem resources.

Sri Lanka is one of the few countries that contribute to the huge worldwide gem and jewellery market which is expected to surpass US$ 257 Billion by 2017. The global jewelry market predominantly procures its primary raw materials i.e. gold, platinum and diamonds, from countries such as Russia, South Africa, Brazil, China, Botswana and Austria. Further processing and fabrication is concentrated in India, China, Turkey, Italy and Thailand. Gold and diamond jewellery has been considered a luxury for ages - and for the ages. It continues to attract consumers from across the globe, primarily due to growing global per capita income levels.

The market is predominantly driven by the Asia Pacific and the Middle Eastern markets, but the U.S. continues to remain the dominant player in the industry. Gold still dominates the market, but other precious gemstones and metals are catching up. During the next five years, diamond jewellery is expected to gain more market share, on account of growing demand from countries such as the UAE, Saudi Arabia, Brazil, Japan, China and India. The latter two are also the world’s biggest importers and consumers of gold. Sri Lanka must strive to gain a bigger foothold in the manufacturing and marketing space as it seeks to achieve US$ 1 billion in forex revenue through gem and jewellery sales.

Improvement

The global market is now witnessing an improvement in the jewellery sales overall with the rising disposable incomes and changing lifestyles. The global jewellery market is set to experience strong growth over the coming years especially in countries such as China. The recent dip in gold prices has also helped, as consumers can buy more gold for less money, although the perception of gold as a solid investment for the future has taken a beating. Silver, white gold and platinum are also riding a wave of sales success.

The increased demand for gem and jewellery is part of a worldwide trend where luxury goods are again in circulation not only among the elite but also among others who have considerable disposable incomes. The rising middle class in most countries has been targeted by gem and jewellery merchants.

We are not likely to lose our affinity to precious gemstones and metals as long as these materials are harvested from the bowels of the Earth. However, these are finite resources that would one day disappear. One has to remember that gems and precious metals are used for many industrial purposes as well, which results in a higher demand.

Even now, it is becoming increasingly difficult to extract some of these precious metals and stones, resulting in rising prices. At some point, it will not be worthwhile to dig for them any longer even if they exist in minuscule quantities. In the far, far future we may be able to explore planets which have them in abundance (did you know that there are planets practically made up of diamonds, which is basically carbon after all?) but until then, we have to rely on the Earth. There is a rising demand for artificial gemstones such as DiamondAura which resemble the real article. But nothing can come close to the genuine article in the end. It is a golden bond that cannot be broken.