Asia is the main market for rubies, with steady demand coming from China. According to jewelry distributors interviewed by JNA Asia, Burmese rubies have always been the most sought-after in China, but there are not enough gemstones in the market to meet the surging demand. The discovery of ruby deposits in Mozambique, Africa, in 2008 helped alleviate the supply challenges and further boosted the ruby trade in China.
With the rise of the wealthy class in China and changing consumer preferences, rubies have become the most desired colored gemstones for discerning buyers in recent years.
Passion for Red
The cultural significance of rubies has a strong appeal to Chinese consumers. In Chinese tradition, red symbolizes luck, celebration, and prosperity. The vibrant red hue of rubies aligns perfectly with these cultural values.
China is the primary market for World Corundum Co Ltd, a Thai gemstone manufacturer and wholesaler. General Manager Tarnan Pattaratara said, "The Chinese market is unique; people love rare, high-quality gemstones, and demand for unheated stones is always very high."
Pattaratara added that most Chinese buyers favor vivid red gemstones, while pinkish or medium-red ones are less sought after.
Tang Kefei, CEO of PN Gems (HK) Co Ltd, also mentioned that among all the factors considered when evaluating colored gemstones—such as cut, clarity, brilliance, and size—Chinese buyers prioritize color. He said, "Their expectations for colored gemstone colors are quite high."
Pattaratara also pointed out that rubies have great potential in the Chinese market. "As long as buyers gain a deeper understanding of the wide spectrum of ruby colors available in the market—from deep red to light pink—they will have more purchasing options."
Ruby Education
According to a consumer trend survey report published by colored gemstone specialist Gemfields in January, there is a strong interest in rubies in the Chinese market, but a knowledge gap exists. Consumers are increasingly eager to access more detailed information on rubies through reliable channels, including price, certification, origin, and treatment processes.
The report, titled "Ruby: Emerging from the Cabinet to Become Part of the Chinese Middle-Class Lifestyle," was conducted between September and October 2023 using a combination of online questionnaires and face-to-face interviews. Respondents were aged 25 to 60 and came from first- and second-tier cities in Mainland China.
Gemfields noted that enhancing professional education about rubies could further drive consumer demand.
Tang Kefei of PN Gems said, "Of course, there are a few experienced buyers who are already knowledgeable about gemstones and even know that different laboratories have different certification standards. They also have preferences for which lab's certificates they want. However, given the size of the Chinese market, most consumers are still at an entry-level stage regarding gemstone knowledge. It is necessary to strengthen their objective understanding of rubies, such as helping them view natural gemstone inclusions more rationally."
He continued, "China's growing middle and upper classes are becoming more interested in learning about the gemstones they purchase, particularly the origin, color, clarity, and treatment processes. They are eager to access information and knowledge through various online and offline channels and are even willing to pay for education."
Tang added, "China's jewelry market is not only booming, but jewelry education is also thriving. Laboratories and institutions are opening jewelry training courses in China, allowing gemstone and jewelry enthusiasts as well as industry professionals to participate. These courses essentially train potential high-quality consumers."
Bright Prospects
Tang Kefei indicated that the Chinese ruby market has substantial growth potential due to still-untapped niche segments.
He explained, "In the past, demand for rubies existed only in first-tier cities, and it was mainly for high-quality gemstones. Over the years, consumers from other cities have become interested in medium- to low-quality gemstones. These buyers are more price-sensitive and less stringent about quality."
Pattaratara from World Corundum also observed an increasing demand from jewelry manufacturers for smaller-sized rubies as well as high-quality, standard-sized rubies for mass-produced jewelry collections.
However, given the declining production of high-quality gemstones, there are significant challenges in the supply of rubies, which has led to rising ruby prices. Ruby suppliers anticipate that prices will continue to rise or remain high.
Chen Yongchu, Chairman of Honghe International Supply Chain Co., Ltd., said, "The Chinese ruby market slowed down last year, mainly due to the global economic uncertainty, which negatively affected retail businesses. Jewelry retailers were reluctant to restock due to high ruby prices."
As an authorized auction partner of Gemfields, Honghe International supplies rubies to chain jewelers in Mainland China and Hong Kong. Chen stated, "Given the continued demand for rubies, I remain optimistic about the future of the Chinese ruby market. However, it is necessary for the entire industry to enhance marketing efforts and educate consumers."
Tang Kefei from PN Gems also pointed out that the high price of high-quality rubies has bolstered consumer confidence, encouraging them to invest in rubies.