Why have Burmese Ruby Prices Skyrocketed???
Recently, the US government decided to lift the ban on the importation of rubies and jade from Myanmar (Burma) that had been in place since the Lantos JADE act of 2008.
During this time, the prices of Burmese rubies have increased exponentially due to many market conditions and the restricted trade.
So, what will it mean to the American trade and the end consumer now that rubies can now flow freely from Burma?
In simple Economics 101, people would assume that with greater supply that prices would drop.
In most cases this would be true, but in this case, we don’t see a huge number of affordable rubies flooding into the US market.
During the period that this ban was in place, Burmese rubies continued to be sold in every other country in the world. The supply was still not meeting that demand, thus the increase in prices globally.
People must understand there is no huge stockpile of gems in Burma waiting to be sent to the US market.
Yes, they are now available to be imported directly, but US buyers still have to compete with other international buyers for this limited supply.
This competitive market will keep ruby prices high as buyers of fine rubies will pay top price for high quality gemstones for their discerning clients.
Adapted from omigems.com