Are Montana Sapphires Valuable?

Introduction

     There is a substantial and growing interest in American-mined sapphire.  I know this because my company, Americut Gems, is a significant supplier of Montana sapphire to retail jewelers throughout the United States.  One expression of this growing interest is the frequently asked question, Are Montana Sapphires Valuable? The purpose of this article is to answer that question.  The answer will be based on examining total worldwide sapphire production and comparing that with total production of American-mined sapphire.  The difference between the two production totals will highlight how scarce American-mined sapphire is relative to sapphires mined in most other locations scattered worldwide.

Production statistics

     The production statistics I am using in this article are based on a report published in 2008 by the United States Geological Survey (Weight of Production of Emeralds, Rubies, Sapphires, and Tanzanite from 1995 Through 2005, Thomas R Yager, W. David Menzie, and Donald W. Olson).  According to the report, the total worldwide sapphire production in 2005 was more than 25,000 kilograms.  Expressed in tonnage, total production was approximately 27 ½ tons.  And for those of us who would like to visualize what 27 ½ tons could look like, we can imagine a row of 12-14 Teslas.  This is the number of Teslas, more or less, whose combined weight could approximate the total mined rough sapphire weight in the year studied. However, we need to remember that this row of Teslas represents the approximate rough stone weight.  You may remember that after the stones are mined, they need to be cut and polished, reducing the total mined weight significantly.  Total polished weight may equal no more than 2-4 Teslas.  

     Another factor that cannot be overlooked is the rejection rate of mined sapphires because of poor quality.  Many, if not most, mined stones are never cut and polished because of quality issues.  Rejection percentages vary from one mine to another.  Based on my own experience, it would not be surprising if only 1-2 Teslas were the more accurate representation of the total annual mined weight of marketable cut and polished Montana sapphires.

     A word of caution is in order.  Acquiring completely reliable production statistics for sapphires and any other gemstone variety is extremely difficult.  The authors of the Survey acknowledge this in their introduction.  They cite the usual complications encountered in conducting gemstone production surveys.   These include the fragmentary nature of the industry, poor and unregulated governmental supervision, and the large amount of underreporting due to smuggling and other covert activities.  In fact, before this report, the United States Geological Survey had never attempted to report production statistics country-by-country.  However, I feel that something is much better than nothing and that the data provided by the survey is very instructive and sufficiently reliable for the purpose of this article.

     The report listed twenty sapphire-producing countries.  The overwhelming majority of total production was from Africa, Asia, and Australia.  The largest producer in Africa was Madagascar.  Sri Lanka was the largest producer in Asia.

Kashmir, Myanmar, Montana: Value/price/rarity

     In addition to production statistics, the survey also discussed the relative value of the sapphires produced based on their country of origin. The report described a wide range of polished sapphire prices among the twenty producers.  The report identified the three most expensive sources: Kashmir, Myanmar (Burma), and Montana.  These three sources had the most expensive sapphires because of their relatively higher quality.  It was also a reflection of the relative scarcity of their supply. With gemstones, as with most everything else, value and rarity go hand in hand.  For example, these three most expensive sources were responsible for approximately 1500 kilograms.  This is less than 6% of total worldwide production.

     Because my company, Americut Gems, is exclusively involved with American-sourced (Montana)  sapphire, I was very interested in knowing what the total production was for each of these three “most expensive” sources.  The total production for the three was approximately 1500 kilograms. Kashmir and Myanmar (Burma) produced, in somewhat equal amounts, more than 1400 kilograms.  Montana’s total production was only 70 kilograms.  This is less than 5% of the 1500 kilograms produced by these three highest-value sources.  I believe that if the production figures provided in this report were updated to reflect current production totals, the ratios would not be significantly different. 

     Based on production statistics reported in this survey, Montana sapphire is valuable by almost any definition.  The meager ratio of Montana production to worldwide production makes it very difficult to conceptualize.  Again, I need to visualize to appreciate.  Imagine a pile or layout of 360 sapphires.  The 360 sapphire layout represents a proportional sample of total sapphires mined worldwide by the twenty sapphire-producing countries identified in the survey.   Based on the production figures reported, only one of the 360 sapphires would have been produced in Montana.

Conclusion

     Are Montana Sapphires Valuable?  According to sapphire production statistics from the United States Geological Survey, Montana sapphires are valuable.  American-sourced sapphire is minuscule compared to other sapphire-producing countries.  If Montana production was double or triple the statistics cited in the report, it would still be trivial.  Montana production would have to increase tenfold to match production in Myanmar or Burma in the years studied, and sapphires from both those countries have always been considered scarce.  Perhaps, on that criterion, Montana sapphire should be considered extremely valuable.

     Several noteworthy inferences can be drawn from the extreme rarity of Montana sapphire.  First, demand for Montana sapphire has been increasing.  More people are using them in engagement rings, anniversary rings, bracelets, and necklaces. It has become a favored gemstone for many designers because of its increasing popularity and the unique nature of each stone. 

     Second, the most expensive high-quality gemstones, including sapphires, are acquired with the expectation that they will be enjoyed for a lifetime.  Consequently, many consumers are very interested in knowing whether a particular gemstone of interest could reasonably be considered a store of value.  Montana Sapphire is very reassuring in this respect. Depreciating values over time are less likely because of the scarcity factor and the prospective supply/demand outlook.  This feature of Montana sapphires has also contributed to the increased demand seen in recent years.

     Third, I know that many, if not most, people attach special significance to finding gemstones that are uniquely personalized in the “one of a kind” sense.  This means having a sapphire that is so rare and unique that it is unlikely to be seen anywhere else, and especially today, a sapphire that does not look like it could be synthetic.  Traditionally, sapphires have been synthesized to look as if they had been mined in Sri Lanka.  Synthetic sapphires do not have a Montana sapphire look.

     This  “one of a kind” feature of Montana sapphire derives, first, from its extreme rarity as we have seen, and second, from features intrinsic to the gemstone itself. Everyone who has worked with this material knows that finding matching stones is very difficult, and sometimes impossible. Montana sapphires have color-changing properties.  Hues and tones shift depending on the light source to which they are exposed.  Matching in one light source becomes undone when examined in a different light source.  This inherent difficult-to-match feature, together with limited availability due to scarcity, makes these American-sourced sapphires the sapphire of choice for all those consumers who value or even insist upon their very own “one of a kind” gemstone.  

     Third, a growing number of consumers prefer purchasing products that are “grown locally”, protect the environment, and are mindful of the health and welfare of workers.  Montana sapphire once again takes pride of its place concerning each of these issues, and this is another reason for its high value and growing demand.

     These are reasons why growth in demand for Montana sapphire is unlikely to subside in the foreseeable future.  There are few if any, reasons to believe dramatic production increases are on the horizon, so rest assured, Montana sapphire will be valuable for some time.

100% Human-Generated