Precious gems are luxury items that are highly sought after by many consumers. Gemstone values are on the rise in recent years, making jewelry containing precious gems even more valuable than ever. Below are three factors that can play a big role in the price of gemstones.

Demand

One of the main reasons gemstones have recently increased in value is due to rising demand from countries like China, India, and Russia. China is the most populous country in the world, and its large class of newly affluent citizens is very interested in procuring beautiful pieces of jewelry, which can be viewed as status symbols. Many speculate that if the economy of the United States, which is the world's largest buyer of gems, had been stronger these past few years, gemstone prices would be even higher.

Supply

Available supply of different types of gems is another big component in their overall value. Extracting diamonds from the earth can be very complicated and time consuming, and any issues in the process can result in a lower output. There are also a finite number of mines that produce gems of high enough quality to be sold to jewelry designers. Some of the biggest mines are in more unstable parts of the world, such as Angola in southern Africa. Any political or civil unrest can impact the production of gemstones and their price.

Cost of Production

The cost of mining gems has gone up over the years; this can be attributed to multiple factors. One example is that many of the companies that supply the stones are paying substantially higher wages to workers. Fuel costs have increased, which also impacts overall production costs. There is increased awareness about the environmental impact of mining. In some places, stricter environmental regulations are being more vigorously enforced, which can drive prices up as well.

These three elements can play a big role in gemstone values. If you want to sell jewelry that you own, acting now may be very good timing since the value of gemstones is on the rise. Call (480) 949-9299 today to schedule an appointment for a professional appraisal of your gemstone jewelry from Ralph Mueller and Associates.