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High-end jade is crazy about 38 million yuan worth of comparable luxury

At the China (Shanghai) International Gold, Jewellery and Jade Fair held in Shanghai yesterday, high-end jewelry from around the world made a stunning appearance. Among the highlights were a 10-karat diamond valued at 3 million yuan and an emerald necklace worth 38 million yuan—pieces that drew significant attention from both buyers and investors. With the U.S. dollar losing value and inflation expectations rising, luxury items such as gold, diamonds, and jade have become increasingly popular among investors. Since the start of the year, diamond prices have risen by approximately 5%, while some top-grade emeralds have seen increases of over 50%. This trend reflects a growing interest in alternative investments that can hold or even increase in value during uncertain economic times. The 38 million yuan jade necklace on display was one of the most valuable pieces at the exhibition, protected by strict security measures, including advanced surveillance systems. These precautions were necessary for the rare and priceless jewelry from 16 countries and regions, including China, Israel, India, and Sri Lanka. During the fair, it became clear that not only gold but also diamonds and jade were attracting significant buyer interest. A Chinese sales representative from an Israeli diamond exhibitor noted that demand for diamonds had been particularly strong this year, especially in the second half. "Many customers are now viewing diamonds as an investment," he said, pointing to a 10.17-carat diamond priced at about 3 million yuan—an increase of 5% since the beginning of the year. In another booth, a string of dark green jade necklaces caught the eye. Each piece, shaped like a pigeon egg, sparkled with brilliance. A manager from a Taiwanese jade company revealed that one of these necklaces was priced at 38 million yuan—equivalent to the cost of a mid-range apartment in Shanghai. He added that jade prices had surged by nearly 50% this year, with high-quality pieces seeing massive appreciation. Diamonds, according to industry experts, follow a strict international grading system known as the 4C (carat, clarity, color, cut), which is updated weekly through the Rapaport Diamond Report. This standardized pricing makes diamonds more reliable as an investment, with an average annual appreciation of around 5% over the past two years. However, only large, high-quality diamonds—typically over 1 carat—are considered truly valuable for investment. According to a member of the Shanghai Diamond Exchange, diamonds priced between 50,000 and 100,000 yuan per carat offer better growth potential. Jadeite, on the other hand, has shown even more dramatic price increases. While lower-grade jade may not see much movement, some high-grade pieces have appreciated tenfold within a single year. Zhang Shengkang, deputy general manager of Shanghai Lao Fengxiang, noted that jade prices have been rising sharply, with some dealers reporting increases of up to 5-10 times in recent years. Xu Wenjun, secretary-general of the Shanghai Gold Jewelry Industry Association, provided an example: a set of jade bracelets that once sold for under 20 million yuan now fetches over 50 million. “The owners don’t want to sell,” he said. “Even at the same price, they won’t buy it back.” So why are diamond and jade prices surging so quickly? Xu explained that these are non-renewable resources, and their production costs are steadily increasing. Combined with the depreciation of the U.S. dollar and strong market demand, this has led to a surge in prices. Last year, Shanghai’s gold jewelry sales reached 25 billion yuan, and this year is expected to exceed 30 billion—a 20% increase. However, investing in high-end jewelry comes with risks. Unlike gold, which is easily tradable, the resale channels for diamonds and jade are limited. Most jewelers are reluctant to repurchase, and the only legal options are pawnshops or auctions. Pawnshops typically offer only one-third of the market value, while auctions require high-quality pieces to qualify. For rare and expensive jade, a sudden drop in price is possible if speculators pull out. Chen Dingmao, a quality supervisor at the Shanghai Baosteel Precious Metal Gemstone Quality Supervision and Inspection Station, warned of the risk of counterfeit products. He advised buyers to purchase from certified stores, especially for emeralds over 5,000 yuan and diamonds over 0.20 carats. These should come with third-party certificates and detailed invoices specifying the product's grade and characteristics, such as whether the jade is natural (A-grade) or treated. Avoiding vague terms like “jade stone” is crucial to ensure authenticity.

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