Prices for both freshwater and saltwater pearls are up, and this trend is likely to continue, said Peter Bracher, manager of Australia Pearl Centre Pty Ltd, a member of the Paspaley group of companies.
Mr Bracher shared his expectations of a bullish pearl market when speaking at the 5th Dubai City of Gold Conference, which was held from April 22 to 23. "Most wholesalers are now rebuilding inventory to meet strengthening demand after several years of reducing stock. Prices of both freshwater and saltwater pearls have been on an upward trend in recent months, signifying increased confidence in the market as a whole," said Mr Bracher.
Prices of South Sea pearls, Tahitian pearls and freshwater pearls decreased in the 1990s due to concern over a rapid increase in pearl production. Mr Bracher described this as an "overreaction" by the industry. He stated that South Sea pearl supply is limited due to factors such as the scarcity of oysters and fishing licence quotas enforced by the Australian government. "Only less than 10 percent of the total harvest of South Sea pearls can be designated as gem quality. There is little likelihood that this proportion will be significantly increased in the foreseeable future," he said.
He added that Chinese production of freshwater pearls has also stabilised in recent months, and accounts for less than 20 percent of global pearl revenue, even with the growth in the past decade. Mr Bracher believes that the rapid growth of Chinese freshwater pearl production has had a positive effect on the general pearl market, as they contribute to a renewed popularity of all types of pearls.
The trade's recognition of the above factors has led to stabilisation of prices during the past 18 months, Mr Bracher said.
The Gemological Institute of America (GIA) announced a pearl certification standard in early April, and Mr Bracher described it as "an encouraging development" in the pearl industry. He expects the pearl knowledge of both the trade and consumers to increase as the use of the certificates becomes widespread.
Paspaley predicts upward trend for pearl prices
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Originally Posted by jshepherd 
