Trend and Analysis of the Future Jadeite Market - Myanmar's 56th (2019) Jade Jewelry Fair
Since the emperor of the Qing Dynasty advocated jadeite jade, the China has become more and more fond of jadeite. The high quality, and gorgeous jadeite has occupied the highest level, and price of the international gem market today. At present, jadeite has a rapid upward trend in the gemstone investment industry, and has become one of the most collectible collections on the market.
The rise of China's economy has led to a sharp rise in the price of high-quality jadeite. In the case of Myanmar's 56th Jadeite Jade Jewelry Fair market in 2019, the price of jadeite has risen over tenfold in 10 years, and some have even risen dozens of times. Compared to the last year, this year's market has improved the prices of jadeite by about 30%.
When something is scarce, it is precious. Because the value came from scarcity. Throughout history, natural, rare, and non-renewable resources have become expensive.
The 95% of jadeites on the market come from Burma, and the world can produce gem-quality jadeite. It is only one source of the Pagan mining area in the north of Myitkyina in northern Myanmar. Therefore, jadeite is often called Burmese jade. In such a harsh conditions, the eight major mining areas have been mining for more than 100 years, including secondary mines, and primary mines. Today, hundreds of thousands of people search and turn over the ore left by their ancestors year after year. But little is gained.
In recent years, due to the increasing exploitation of jadeite, the frequency of mine accidents has become higher and higher. The Myanmar government continues to control the amount of mining. In 2017 alone, the Myanmar government shut down thousands of small and medium-sized mining companies, and in 2020 the government will limit most of the mining rights. Therefore, the price increase of jadeite jade is inevitable. In fact, from the price of the original jadeite stone in Myanmar in 2018, the quality of jadeite has dropped a lot, but the prices are still rising.
According to statistics, in the 1970s and 1990s, the prices of diamonds, emeralds, sapphires, and jadeites increased by 10 to 30 times, respectively, while the price of high-grade jadeites even rose by more than 30 times. Of course, only jewelry is affected by the world economy. Since the mid-1980s, top emerald green jadeite jade has soared hundreds of times. As for the international market, the auction price of the jadeite jade auction is between RMB 10 million and RMB 100 million per year. As an example, on April 3, 2019, Sotheby's 'Hong Kong Magnificent Jewels', a piece of jadeite jade bracelet with an inner diameter of about 56.86x11.62 mm and a thickness of about 56.86x11.62 mm was taken. Valuation of HK$80,000,000 to HK$100,000,000. This price is enough to see the appreciation of the jadeite jade - unstoppable.
If any commodity violates the laws of the market, the sales volume of the best products will also fluctuate. The jewelry industry has always had a fierce market competition, and collectors (or buyers) have become more rational. For the currency market, jadeite jade has been relatively stable. Last year, low-end commodity prices were relatively large, but for mid- to high-end jadeite jade, especially high-end jadeite jade, we believe there is a modest appreciation.
In the 56th Myanmar Jadeite Jade Jewelry Fair (commonly known as the “Myanmar Jadeite Jade Public Auction Market”) from March 11th to 20th in 2019 in the Maniyadna Jewelry Hall in Naypyidaw, we found 6,974 pieces of jadeite jade raw stone and finished products, which is more than 6,795 pieces of last year's fair, and the quality of jadeite jade is much better than last year. However, the average price of all jadeite stones is more than 30% higher than the previous jadeite jade. The basic reserve price of the original jadeite jade gemstone was set to 4,000 euros, and the basic reserve price for this year will be raised to 5,000 euros. In addition, we have encountered a lot of Chinese buyers and jewellers, we also found this time the domestic jade merchants who participated in this fair with only 2,200 people, which is less than the number of people who went to the fair last year.
What shocks us is that from now on, the Myanmar authorities will no longer approve domestic and foreign enterprises to operate new jadeite jade mines, and the expired jadeite jade mines will not be postponed or renewed. All mines were completely closed in 2021. Therefore, from the current data of the 2019 jadeite jade price trend, the price increase is still inevitable. The reasons for closing the mining area involve many factors, such as the international situation, frequent warfare, restrictions on exports, and depletion of resources.
First of all, the depletion of jadeite jade resources is inevitable. In recent decades, the excavation of jadeite deposits has been over-exploited and is currently facing the danger of depletion, especially the high-quality jadeite jade, which is rare. Most of the finest-quality (Imperial Jade) jadeite that have been handed down as a family heirloom, and are barely visible in the market. Even if such goods can be found in some famous auction houses, the price is very expensive.
Secondly, we analyze the situation in which the Myanmar government “decided to close some mining areas to avoid chaotic mining”, and also is “hunger marketing” means. This has been the case in recent years. This year, the decision to close the mine was announced, but every year have "highlight" news. Since many of the jadeite jade mines in the Pagan area were issued during the presidency of Wu Dengsheng, most jadeite jade mines are authorized to operate until 2020, while the current government has not yet issued mining rights for new mines.
More than 95% of the jadeite in the world comes from Myanmar, and high-quality jadeite jade stone is only found in Myanmar. Myanmar jadeite jade is a monopoly industry. This uniqueness also makes the Myanmar government have an absolute market voice and an arrogant attitude towards buyers. No other place in the world can provide high quality jadeite jade. As early as the Qing Dynasty, jadeite jade has entered China in large numbers. After the founding of the People's Republic of China, the jadeite jade market began to develop in 1972. For more than 40 years, the source of jadeite jade has been firmly controlled by the Myanmar government. This method is very effective, and the price of jadeite jade stone even exceeds the price of retail goods.
But on the other hand, for the ecological environment of Myanmar and the safety of worker's life in the mining area, it's a good thing to close the site. The local licensed companies of Pagan have been continuously exploiting 24 hours a day because they know that they will not acquire mining rights from the time the current government takes office. This kind of destruction is terrible. It is necessary for the land to be breathed and restored, and this is the return of mankind to nature. The closure of mining areas in Myanmar can protect mineral resources, strengthen ecological environment protection, and provide long-term fixed output of local resources.
The market regulation mechanism in Myanmar is also improving, and the attitude of collectors to jadeite jade is more rational. The supply and demand relationship determines the price of the commodity, and now the price of jadeite jade may not have any significant fluctuations. The biggest reason is that there is still a large inventory of jadeite jade stone by dealers. However, with the exhaustion of jadeite jade resources, the increase in mining costs, and the strict ban on raw material export policies in Myanmar, the price of jadeite is inevitably higher in the near future.
* By OGP Business Reporters / Members Contribute File Photos
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