Rising Demand for Colored Gemstones in China Pressures Pakistan to Respond Swiftly

Rising Demand for Colored Gemstones in China Pressures Pakistan to Respond Swiftly

The 2024 Beijing International Gold, Jewelry, and Gemstone Exhibition wrapped up on June 3rd at the Beijing Exhibition Center, showcasing exhibitors from major Chinese cities like Beijing, Shanghai, Shenzhen, and Guangzhou, alongside international jewelers. Chinese consumers displayed enduring interest in gold, jade, pearls, and other valuable commodities. Particularly noteworthy was the growing fascination with colored gemstones, drawing considerable attention to the booths of exhibitors hailing from Pakistan and Sri Lanka.

Customers selecting colored gemstones from Sri Lanka and Pakistan

A consumer informed the reporter that they were intrigued by the quality of colored gemstones from Pakistan and Sri Lanka, prompting them to inquire about the pricing in hopes of finding a worthwhile purchase.

In 2023, China’s jewelry industry achieved a milestone with its import and export value soaring to $145.334 billion, marking an impressive 8.62% year-on-year increase. Notably, Chinese consumers exhibit significant interest in gold and silver jewelry, appreciating their aesthetic appeal and investment potential. Furthermore, there was a notable 47 percent surge in Pakistan’s exports of gems and precious stones to China in 2023, signaling an expanding appreciation for the quality of Pakistani gemstones among Chinese buyers.

Muhammad Amjad‘s booth at the 2024 Beijing International Gold, Jewelry, and Gemstone Exhibition

Muhammad Amjad, proprietor of PIEDRA, a Pakistani company specializing in colored gemstones, showcased emeralds, aquamarines, and other gems at the exhibition. “Arriving in China in 2006, I’ve been immersed in the colored gemstone industry ever since. Opting to conduct business in China was straightforward due to the strong diplomatic ties and robust purchasing power of Chinese consumers,” said Muhammad Amjad. “The reliability and trustworthiness of my local partners have been paramount to me. Despite sales fluctuations in recent years, I am optimistic about market recovery and future prospects.”

Gems from different areas in Pakistan

Since 2023, there has been a growing demand for colored gemstones in China, complementing the traditional stronghold of gold as a safe-haven asset. Market research conducted by the China Gems and Jade Association (Beijing) Fund Management Co. revealed that during the first half of 2023, prices for colored gemstones across various categories in China experienced an average increase ranging from 30% to 50%. Particularly, prices for larger or relatively rare gems saw significant surges, reaching as high as 100% to 150%.

While the demand for precious-colored gemstones hasn’t seen the same dramatic surge as gold, it has demonstrated stability with a loyal customer base. In recent years, the growing influence of e-commerce and social media platforms has led to increased acceptance of colored gemstones, especially among younger consumers,” stated Ma Xiaozhong, a veteran jeweler based in China. Ma, who owns Muny Asia Jewellery, a colored gemstone company in Beijing with over 20 years of experience, added, “We procure raw gemstones from various global sources, process them domestically, and distribute them both locally and in Western markets. However, we have yet to establish stable partnerships with suppliers in Pakistan.

When questioned about this, Ma expressed caution, explaining, “Pakistan’s gemstone industry boasts a longer history compared to China’s. In Peshawar’s gemstone market, one can find family businesses with a century-long legacy. It’s challenging for newcomers to penetrate the market, and conducting business as a foreign entity is equally demanding. Pakistan’s gem certification processes do not always align with international standards, and some certification documents lack international recognition.” Ma’s account underscores a missed opportunity in the gemstone trade.

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