GEMSTONES

Production The value of natural gemstones produced from U.S. deposits during 2022 was estimated to be $9.5 million, essentially unchanged from that in 2021. U.S. natural gemstone production included agate, beryl, coral, diamond, garnet, jade, jasper, opal, pearl, quartz, sapphire, shell, topaz, tourmaline, turquoise and many other gem materials. More than 60 varieties of gemstones have been produced from U.S. mines, but commercial mining of gemstones has never been extensively undertaken in the United States. Most U.S. gemstone production has been from relatively small mining operations, or production has been as a byproduct of the mining of other mineral commodities. In the United States, much of the current gemstone mining is conducted by collectors, gem clubs and hobbyists, rather than commercial organizations. The commercial gemstone industry in the United States consists of individuals and companies that mine gemstones or harvest shell and pearl, firms that manufacture synthetic gemstones, and individuals and companies that cut natural and synthetic gemstones. The U.S. gemstone industry is focused on the production of colored gemstones and on the cutting of large diamonds. During 2022, each of the 50 states produced at least $1,720 worth of natural gem materials. Twelve states accounted for 93 percent of the total value, as voluntarily reported to the U.S. Geological Survey (USGS) by survey respondents. These states (listed in alphabetical order) were Arizona, Arkansas, California, Colorado, Idaho, Maine, Montana, Nevada, North Carolina, Oregon, Tennessee and Utah. Some states are known for the production of a single gem material, such as Tennessee for freshwater pearls. Other states, including Arizona, California, Colorado, Idaho, Montana, Nevada and North Carolina, are known for producing a variety of gemstones. California and North Carolina have identified deposits of three of the most popular precious gemstones: emerald, ruby and sapphire. Both states reported production of emerald, ruby and sapphire during 2022, and diamonds have been found in both states in the past. The USGS estimated the value of U.S. synthetic or manufactured gemstone production was $85 million in 2022. Reported output of synthetic gemstones was from eight companies in Arizona, California, Maryland, New York, North Carolina, Oregon, South Carolina and Wisconsin. Production included the manufacture of azurite, malachite, diamond, moissanite and turquoise. Consumption and uses Although the United States accounts for only a small portion of the total global gemstone production, it is the world’s leading gemstone market. The U.S. gemstone market was estimated to account for more than 35 percent of world gemstone consumption in 2022. U.S. apparent consumption of unset gemstones in 2022 increased by 18 percent over the previous year to an estimated $28 billion. The U.S. apparent consumption of unset gem-quality diamond during 2022 was estimated to be about $24 billion. U.S. apparent consumption of unset nondiamond gemstones totaled about $3.8 billion. The major uses for gemstones in the United States were in jewelry, for carvings, and in gem and mineral collections. Prices Gemstone prices are governed by many factors and qualitative characteristics, including beauty, clarity, demand, durability, freedom from defects, perfection of cutting and rarity. Colored gemstone prices are generally influenced by market supply-and-demand considerations, and diamond prices are supported by producer controls on the quantity and quality of supply. Diamond pricing in particular is complex; values can vary significantly depending on time, place and the subjective evaluations of buyers and sellers. Imports and exports Trade data in this report are from the U.S. Census Bureau and were adjusted by the USGS. During 2022, total U.S. gemstone trade with all countries and territories was about $29.6 billion ($28.0 billion in imports plus $1.57 billion in domestic exports). In 2022, U.S. domestic exports of diamond were valued at $1.12 billion. U.S. domestic exports of gemstones other than diamond were valued at $447 million. U.S. imports of diamond were valued at $24 billion, and U.S. imports of gemstones other than diamond were valued at $3.97 billion. The United States is a significant international diamond transit center as well as one of the world’s leading gem diamond markets. The large volume of reexports shipped to other centers is one measure of the significance of the United States in the worldwide diamond supply network. New sales platforms were established during 2020 and remained in place during 2021 and 2022 in the rough diamond market to overcome travel constraints and streamline the journey from the mine to the jeweler. Online auctions gained a higher share of rough diamond sales and offset deficits in traditional sales channels. In a four-year (2018-2021) average of U.S. import sources by value, the leading gemstone sources were India (45 percent), Israel (28 percent), Belgium (11 percent) and South Africa (5 percent). Typically, diamond imports accounted for 86 to 95 percent of the total value of gemstone imports. Outlook During 2022, the U.S. and global gemstone and jewelry industries continued recovering from the effects of the global COVID-19 pandemic. Jewelers maintained their online business and sales from their websites throughout the pandemic. Many reopened stores, but they still maintained their online presence during 2022. U.S. apparent consumption of gemstones increased in 2022 and exceeded prepandemic levels of 2018 by about 8 percent. Most major U.S. gemstone trade shows were held again. During 2022, world gem-quality diamond production increased by about 3 percent from 2021 levels and was driven by the reopening of profitable mines that were suspended in 2020 and the addition of new mines. By 2025, several large mines will reach the end of their mine life, while only a few new projects are currently being developed. As domestic and global luxury spending recovers from the effects of the pandemic, sales of gemstones and jewelry are also expected to increase. Internet sales of diamonds, other gemstones and jewelry are expected to continue at a high level and to increase in acceptance, along with other forms of electronic commerce (e-commerce) that emerge to serve the diamond and gemstone industries, partially replacing “brick-and-mortar” store sales. More synthetic gemstones, simulants and treated gemstones are likely to enter the marketplace and necessitate more transparency in the industry trade standards to maintain customer confidence.

GEMSTONES

Authored by:
Donald W. Olson

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From sessions to strategy: Revealing long-term and emerging innovation trends in data analytics, intelligent systems and automation

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To view the past issues of the UCA magazine you must be a member of SME/UCA.

FRAC SANDS

GRAPHITE

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