From the Ground to the Jewel: The Complex Traceability of Colored Gemstones

In a rapidly expanding market, rubies, sapphires, emeralds and a constellation of lesser-known gems are now an investment opportunity for collectors and informed buyers, as well as fertile ground for independent brands’ aesthetic experimentation. Ethical sourcing awareness is also increasing, as are online retail platforms, which make precious stones accessible to a wider audience. But what does their supply chain actually look like today? To what extent do promises of traceability correspond to the reality of a historically fragmented sector? And what strategies are brands adopting to manage it?

According to Kenneth Scarratt, an internationally renowned gemologist with decades of experience at the GIA and currently engaged in various roles within the World Jewellery Confederation (CIBJO), the picture is still complex. «Although some large companies manage to ensure good mining practices and, to a certain extent, control the supply chain, the vast majority of colored gemstones are still mined in remote locations in artisanal conditions.» Thousands of mines around the world still operate manually. «The mined stones are sold to local purchasing offices run by international traders, who then take them to global hubs such as those in Sri Lanka and Thailand. Here, rough stones often lose any concept of a proper supply chain and are resold to traders whose sole interest is to obtain maximum profit from the faceted material. Every year, millions of carats follow this trajectory. Although we may be familiar with the country of origin of some stones, knowledge of the mine and actual operations is lost on the merry-go-round.» The idea of a completely transparent supply chain seems further away than many contemporary reports suggest, as Bruce Bridges, president of the American Gem Trade Association (AGTA) and the family business Bridges Tsavorite, confirms. «We are the first company in East Africa to adopt a fully vertically integrated “mine-to-market” model. My father, Campbell Bridges, discovered Tsavorite, and to date, we are still the world's largest Tsavorite miners and suppliers. However, for other colored stones, having a true “mine-to-market” strategy is literally impossible.» The reason, he explains, is primarily geological. «Tsavorite is an extraordinarily rare gemstone found in commercial quantities in only two neighboring countries, Kenya and Tanzania. Most colored gemstone deposits, on the other hand, are spread over very large areas. No large mining company extracts the entire variety of colored gemstones. In most cases, it would not even be economically viable.» The direct sourcing model, he adds, can also be controversial. «While in existence for over half a century, it has only been promoted more greatly in the last ten years, although it doesn’t actually exclude many intermediaries. When word spreads that a foreign buyer is about to make a purchase, goods are often transported from all surrounding areas to a single mine and presented as if they had just been extracted from that mine. Unless you literally see the gems coming out of the tunnel wall or from a flood, you really have no idea where they are from.»

That is why some designers have chosen to adopt this formula. During her years in London, French designer Sarah Madeleine Bru collaborated with gemstone prospectors in Scotland. Upon returning to France, she repeated the experience through collaboration with Geologic Garden, choosing to work with Auvergne sapphires, which are found in very limited quantities. The stones are picked by hand from rivers and natural deposits and then cut nearby. «What is really changing is that the supply chain is getting shorter and under much greater scrutiny,» notes Gianluca Maina, Global Marketing & Communications Director at the Fura Gems mining company. «In recent years, I have seen a significant increase in independent brands’ interest in greater transparency along the supply chain. Direct sourcing allows us to work with suppliers closer to the source — such as tender houses, cutters, or specialized dealers — and to have greater visibility into the origin of the gemS.

Designer Camille Beinhorn personally knows her sourcing partners and the mining regions from which the gems she uses come. She has visited private mines in Vietnam, where her sapphires and spinels originate, and observed the markets for rough, already cut and polished gems, building direct and solid relationships with traders over time.

Isabel Delgado purchases small batches of gems through suppliers who have direct links to mines or mining company auctions. The stones, accompanied by gemological certifications, are then handcrafted in New York. Etiq maintains long-standing relationships with rough stone traders and miners and each gem comes with an internal product passport and laboratory certifications. Guendalina Fil selects gems from different mining regions and tracks the stones' journey through international gemological laboratories. La Marquise, with a vertical structure, purchases directly from mining companies or through official auctions. Operating internally in Dubai, it certifies according to standards such as the Responsible Jewellery Council and the Kimberley Process. Companies such as these demonstrate that direct sourcing is possible and, as Maina says, «it currently provides a good balance between product access, transparency and flexibility, especially for independent companies that want to have greater control over the origin of stones.» What can we expect in the future? According to Scarratt, «any changes in sourcing patterns over the next decade are unlikely. However, as with most other products, we can expect to see an increasing use of digital marketing platforms to bring gemstones to market, which in itself will bring additional challenges that still need to be addressed.» Bridges warns of an even greater commercial narrative. «I think we will see an increase in direct sourcing marketing, and I have noticed a constant rise in advertising.» Maina entrusts in the idea of an advanced form of direct sourcing supported by increasingly sophisticated tracking tools. «I believe that the future will consist mainly of hybrid models, where the supply chain is shortened but the expertise of specialized operators will still be required. Technology will certainly play an important role, especially in terms of transparency and information management. Digital tools, platforms and traceability systems can help considerably in documenting the origin of gems and making the supply chain more transparent. That said, colored gems are not a standardized commodity. Each stone is unique and evaluation still requires expertise, experience and trust among operators. Technology will lead to a natural selection of operators: those who can offer verification, expertise, and credibility throughout the supply chain will become increasingly important.»