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  1. #1

    Default Does the price of natural pearls go down?

    Hi all,

    Does anyone know if natural pearls have an unstable price that goes up and down like gold? if it does, what makes it go down or up? is the cultured pearls also related?

    i would really like to read more about this if anyone can provide informative urls or any general knowledge please discuss here.

    thank you.
    See more on Instagram @Gulf_Pearls

  2. #2
    Natural Pearl Expert Senior Pearl-Guide.com Pearl Expert Lagoon Island Pearls's Avatar
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    An interesting question. I'm certain I don't have a complete answer, but I'll comment with my opinion.

    Any luxury item, whether it be natural or cultured pearls are both directly and indirectly proportional to the world economy. Natural pearl collection is merely a tiny niche in the overall pearl marketplace. Those who want them, specifically want them, therefore ought to pay premium prices. When you find ways to lower that premium to the end user, they'll move better to everyone's advantage.

    When the price of gold is high, the cost of finished products is high. Issues such as these undoubtedly cause wholesalers and manufacturers to look for better deals, meaning paying less for gems or other parts.

    When the price of fuel drops like has recently, it's good for pearl farmers and wholesalers etc., but it takes several years to realize. After all, cultured pearls need to grow a while. Pearls from the last few years were produced with high fuel costs. Natural pearls on the other hand, go from shell to market rather quickly, so it's difficult to parallel them with cultured pearls in the short term.

    Natural pearl harvesters today enjoy reduced fuel costs, even though other costs continue to rise. This point is not lost on wholesalers looking to cut corners on raw materials nor consumers looking for a bargain. The price of gold dropped to $1200 USD in December, but is trickling upwards again. Therefore, it's harder to negotiate an adjustment in return.

    Again, I'm not sure what the answer is, but fuel and gold certainly play into the equation. All I can suggest is finding a balancing point between hoarding when the market is low and selling when the market demands it. The disadvantage is cash flow, but the advantage is greater matching... which increases value and better pricing.

    Good luck, good diving and be safe!
    Dave
    http://www.lagoonislandpearls.ca/

  3. #3

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    Thank you so much, that is exactly what i need to know, it sure is a complicated matter.

    When the price of fuel drops like has recently, it's good for pearl farmers and wholesalers
    Isn't this going to make cultured pearls cheaper? there will be more cultured pearls taken to the market and natural pearls on the other hand would be the same as before, which makes them rare to find and more expensive?

    is there a chance of something that might happen that makes the pearl market collapse or might make it go too high? some things to take in consideration.

    Glad you shared your thoughts.
    See more on Instagram @Gulf_Pearls

  4. #4
    Natural Pearl Expert Senior Pearl-Guide.com Pearl Expert Lagoon Island Pearls's Avatar
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    Quote Originally Posted by Gulf_pearls View Post
    Isn't this going to make cultured pearls cheaper? there will be more cultured pearls taken to the market and natural pearls on the other hand would be the same as before, which makes them rare to find and more expensive?
    Although cheaper to produce, it doesn't necessarily mean more will delivered to market. The supply often matches the demand. One thing for sure though, very few buy natural pearls as their first purchase. Judging by the many postings here over the years, consumers often start with pearls from the mid to low quality then upgrade to superior qualities. Then afterwards may choose to purchase natural pearls.

    They are out of reach to most consumers and infinitely rare when compared the volumes of cultured pearls in the world.

    Quote Originally Posted by Gulf_pearls View Post
    is there a chance of something that might happen that makes the pearl market collapse or might make it go too high?
    Maybe, but I'd doubt it. The more rare things become, the greater the demand. In recent years, natural pearls have gained some traction. They've been a luxury item for centuries and will likely continue for the foreseeable future.
    Dave
    http://www.lagoonislandpearls.ca/

  5. #5

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    I guess its best for anyone possess a rare thing to keep it and it will be much valuable later, i spoke to many worldwide business men that deal with pearls about this and they say natural pearls are very hard to deal with, expensive and so hard to tell if they are natural even in labs specially if they were big in size so anyone who would like to buy some might be in trouble for a chance of buying something fake, so some might not buy natural pearls very easily and they're not flowing in the market like cultural pearls.

    Thank you for responding you helped me so much.
    See more on Instagram @Gulf_Pearls

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