Russia in the world market of colored jewelry stones: the price of the issue
Rubies, sapphires and emeralds
According to Decree of the President of the Russian Federation of November 30, 1995 No. 1203, consolidated information on Russian exports and imports of precious stones for exceptional natural diamonds classified as a state secret. Therefore, feedback from the securities market to the global market for colored gemstones is not possible. And although for mined stones there are no secret data on their balance of reserves in the bowels of Russia, the volume of their extraction and production, nevertheless, depending on Russia’s share in the world market of colored precious stones in the face of a significant reduction in the risk of exports and imports from foreign sources.
For expert assessment, we use data on international trade in rubies, sapphires and emeralds from the Internet platform Observatory of Economic Complexity, OEC (https://oec.world/en/profile/hs/rubies-sapphires-and-emeralds-worked-but-not-set), presence of Datawheel.
According to the OEC, the volume of exports of processed rubies, sapphires and emeralds (code HS6 ID 710391) in 2020 reached $2.83 billion, which accounted for 64.7% of the entire market for colored gemstones*.
The detailed dynamics of exports and imports for a given OEC resource code allows you to trace from 1998 to 2020, which is enough for a clear vision of the situation.
The share of Russia in the turnover of produced rubies, sapphires and emeralds was, according to OECIn 2020, only 0.468 million US dollars of exports (0.017% of exports of exports in this subgroup) and 3.88 million US dollars of imports (0.14% of European imports in this subgroup).
There is no industrial mining and processing of rubies and sapphires in Russia at all, so the entire volume of exports in this position is significantly cut emeralds. Over the past quarter of a century, the extraction of emeralds has been extremely uneven, which has also been reflected in exports. It is impossible for Russia to boast of some buyers on the world market as well. In the observed years, there was a surge in the export of emeralds:
– in 1999 in the USA ($3 million);
– in 2011 in China ($4.52 million);
– in 2013 in the UK ($3.3 million);
– in 2016 in China ($1.73 million);
– in 2019 in Switzerland ($2.43 million).
Over the course of all 25 years, they have been going very noticeably (from less than $0.1 million to $0.9 million) and the supply of emeralds from Russia for export to Belgium, India, France, and Japan is not ruled out. Despite the fact that over the past 10 years, the supply of emeralds from Russia for export has more or less stabilized, their volumes are completely excluded for the international market, especially with a downward trend.
Imports to Russia of cut rubies and sapphires and emeralds, according to the OEC resource, at some scale since about 2004. These were shipments from Thailand (from $0.316 million, through a peak of $5.16 million in 2008 and to a recent spike of $3.26 million in 2014), but imports of these stones from Thailand have declined significantly in recent years (to $0.466 in 2014). year). 2020).
As a rule, the peak year for Russia in terms of imports of cut rubies, sapphires and emeralds, according to the OEC, was 2008, when, outside of Thailand, stones were imported from the UK ($2.66 million), Hong Kong ($1.98 million). .US), Germany ($1.47). million), as well as, to a lesser extent, from India, the United Arab Emirates, events.
Somewhere since 2010, it has been the main supplier of cut rubies, sapphires and emeralds on the Russian market due to the presence of the EAEU Customs Union, which began to play in Armenia. In 2010, it was only $0.103, reaching $10.4 million in 2019. However, in 2020, imports of stones from Armenia are expected to decrease to $1.69 million. This year, Switzerland supplied stones to Russia for $1.54 million, Thailand for $0.466, and Germany for $0.095.
CONCLUSIONS:
Taking into account the fact that in the total share of Russia in the world production of jewelry is still higher – about 4%, there is no own production (and cutting) of rubies and sapphires in Russia (i.e., all these stones are imported into Russia by import), the share Russia in world imports, sapphires and rubruds in 0.14% is clearly disproportionately small.
The explanation can be found simply: since the times of the USSR in Russia, women have become accustomed to using jewelry exclusively with cheap inserts made of synthetic stones. Countless faceted synthetic rubies of the largest sizes (up to 10 cards or more) filled the counters of jewelry stores in Soviet times. There were significantly fewer synthetic emeralds and sapphires, and their “role” in jewelry was often played by colored rhinestones. The culture of consumption of colored gemstones was completely absent in the country.
Such asceticism in the consumption of colored precious stones has been successfully preserved in all years and in the new Russia. Mainly – thanks to the discovery of legislation, with surprising persistence forbidding citizens, under pain of coverage, not only to make transactions with precious stones, but even simply to store them outside the composition of jewelry.
The absence of truly free stones on the market of colored precious stones in modern Russia leads to both the degradation of the granite industry and the lack of expansion of commercial use in the public’s mind of the most accessible idea of owning valuable objects – rubies, sapphires and emeralds.
Few Russians today do not understand only the true interest in colored precious stones, but generally understand that they are of practical interest. Diamonds are understandable to Russians, but all the rest, i.e. colored precious stones in the view of our compatriots have little value …
Of course, there are exceptions to any rule. Some wealthy Russians have purchased jewelry with high-quality colored gemstones while traveling abroad. Someone bought jewelry with good rubies, sapphires and emeralds inside Russia, as a rule, from jeweler artists who produce such exclusive pieces on a piece-by-piece basis. But the mass production of jewelry with colored precious stones in Russia did not reach the global scale.
In addition to a decrease in demand for colored gemstones, another factor is also working on the Russian market. The decrease in the turnover of imports of rubies, sapphires and emeralds is the relative poverty of the majority of the population and the naive desire for wealthy buyers to buy something expensive cheaply. Thus, colored gemstones that are still imported to Russia are usually very large. As well as high quality cut.
And, besides, such studies, with a probability of 99%, are also deeply blessed. For example: if these are rubies, then they contain glass in excess of every fraction, if they are sapphires, then they are probably with a diffusion color (and not heat-treated), if emeralds are mercilessly impregnated, and it’s good if they are colorless poisoning. Why are they cheap.
Alas, in such a market for the sale of roads, there are almost no unrefined Ural emeralds – a futile occupation – they are almost non-existent. At least there is no mass consumption.
There are several other factors that reduce the capacity of the Russian market for colored gemstones. But these factors cause not only the attitude towards this subgroup, but also towards the import of all precious and semi-precious stones, precious metals, jewelry, etc. This is, first of all, the complexity and cost of import procedures for business administration. In Russia, in addition to customs control, when importing precious and semi-precious stones, there are also others, the so-called state control. And these valuables can only be transported through specialized customs posts with free competence. Obtained with the payment of customs duties.
It is important that any type of business related to precious metals and precious stones, jewelry, is very strictly determined in Russia in accordance with the current industry for the choice of the Federal Assay Office. Such control is associated with the endurance of activity, the severity of its marginality, and, ultimately, the severity of attraction. With the introduction of the state comprehensive information system in the field of control over the circulation of precious metals, precious stones and products from them for all cases of this circulation (GIIS DMDC), the complexity and cost of researching a business related to precious materials increased even more.
Can the colored gemstone market improve by raising potential capacity? Of course, you can, because. Russians have always loved historical gems. Not the fault of the population, which, apparently, does not correspond to its real product, but to cheap synthetic substitutes. There is no promotion, advertising of goods – there will be no demand, and without it – there will be no offers. But no market can live without freedom.
All that needs to be done to develop the domestic market for colored gemstones, the need for them is to make the market for colored gemstones completely free, eliminate the entry about colored gemstones in Articles 191 and 192 of the Criminal Code of the Russian Federation and change the norms of the Federal Law “On Precious Metals” . and Precious Stones”, renaming it into the Federal Law “On Precious Metals and Diamonds”. Those. about those objects of regulation that are really of great importance for the economy.
And then the private initiative of the market will raise the market of colored precious stones, which, nevertheless, it would be better to call them not precious, but jewelry stones. Not immediately, but over the years, their Russian market will become capacious!
* – other market shares of colored gemstones are grouped under the code HS6 I WOULD 710399 “Precious and semi-precious stones, worked” ($1.13 billion, or 25.9% of the entire colored gemstone market) and by code HS6 I WOULD 710310 “Precious, semi-precious, unworked or partially processed stones” ($0.41 billion, or 9.39%).