Myanmar Ruby MarketThe Myanmar Ruby Market
Ban on Burmese ruby imports lifted - What does this mean?
The US administration recently agreed to lifting the import embargo on Myanmar (Burma) imports of ruby and yade, which had been in force since the Lantos-JadeE Act of 2008. Throughout this period, Burma's ruby price has risen at an exponential rate due to market and trading constraints.
What does it mean for the US retail industry and the end user that Ruby can now run free from Burma? One would think in basic economics 101 that with a larger offer the price would fall. For the most part, that would be real, but in this case we do not see a large number of cheap Rubies on the U.S. market.
Throughout the time this prohibition was in force, Burma's Ruby products were still on sale in all other countries of the planet. There was still no response to this level of consumption, i.e. the rise in global food costs. There' s no vast stock of gemstones in Burma just waitin' to be sent to the US market.
Yes, they can now be directly importet, but US purchasers still have to vie with other global purchasers for this restricted offer. It is this highly-favorable market that will keep ruby high, as purchasers of thin jewels will be paying the highest bid for high-quality gems for their demanding customers. We have a very powerful range of Myanmar jewels and we hope to expand it further with the flexibility of new production options.
While we are watching the market hard as it is affected by Burma's new supplies and the Asian slowdown, we do not expect lower asset price levels due to early signs from the wellsprings. We' ll use our relationship to get the best price Ruby and share this value with our customers.