Thursday 28 Mar 2024
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Jade has been coveted for centuries, not just for its metaphysical properties but also its subtle beauty. But in recent times, the gemstone has become an alternative form of investment among the affluent. In Malaysia, the demand for gemstones has grown. An HSBC survey on local retirement trends has found that working Malaysians are parking their cash in a number of unconventional sources, including jewellery.

In its report titled “A balancing act”, released last month, HSBC says 76% of the respondents are relying on investments in gold, jewellery or diamonds to support their retirement. The respondents also expressed interest in antiques (32%), classic cars (28%) and art (25%).

A local wholesale dealer in gemstones says an average jadeite can easily cost between RM10,000 and RM30,000. The dealer also mentions that a supplier once sold a ring encrusted with imperial jade for RM490,000 — five times its original value. 

The gemstone

Jade is a generic term for both jadeite and nephrite — two distinct ornamental gems. Nephrite is a softer gem known as “mutton fat” jade, named for its marbled white appearance. This variant is more common in China. It was discovered as early as 3,500 BC in the form of funerary ornaments and tools.

Jadeite, which was introduced to the Orient in the 1700s during the Qing Dynasty, is more durable and revered as it is believed to ward off evil spirits and symbolises purity and longevity.

“Jadeite of exquisite quality will have resale value. The rest are more heirlooms, and you don’t generally sell those. Only if they are of a certain value, would one consider selling them,” says Lay Soo Yuen, a certified gemologist.

“However, the supply of this gem is limited. The ever-increasing demand juxtaposed with a decreasing supply makes for a perfect investment scenario,” says Lay, who is certified by the Hong Kong Institute of Gemmology in jadeite jade.

How to pick jade

Jade that fetches the highest price in the market is appraised chiefly for its rarity, vivid hue, sleek surface and translucency. Added to that is the demand from connoisseurs and collectors in Asia, who are keen to recover rare and antique jadeite jewels that are considered national treasures and part of their cultural heritage.

Top-quality jadeite, however, is quite rare. About 90% of the world’s supply comes from mines in Myanmar. The price per ounce of the top-grade “imperial gem” mined has increased tenfold over the last decade, with demand outpacing supply. This has exhausted the little supply left in the once jade-rich valleys of the Kachin state, a conflict-ridden territory.

Jadeite is usually cut into cabochons for use in pendants, rings and other jewellery, says Lay, who runs a store that specialises in bespoke jadeite jewellery, Rui Vivre Sdn Bhd. 

Cabochons are gemstones that have been shaped and polished into a dome-like design with a flat bottom, as opposed to having a faceted design where sparkling coloured stones with a flat surface are polished so that the maximum amount of light can be reflected. 

A green imperial jade with a vivid hue and no hints of grey can command millions of dollars in the market. These gems come in solid or bluish green, or green with a yellow tinge.

According to the Gemological Institute of America (GIA), there are other valuable varieties as there are various shades of green. They include the “kingfisher jade”, which is slightly less vivid than the imperial stone; the “apple jade”, which comes in yellowish green; and the “moss-in-snow jade”, which is translucent white with bright green veining, patches or spots.

“Its value is not necessarily determined by its age. This is not the top criteria. We emphasise rarity; it is one of the most important criteria in determining its value,” says Lay, adding that gemstones take millions of years to form, so it does not matter whether it is old or new.

Contrary to popular belief, jade does not come only in green. There are other coloured jadeites favoured by aficionados and investors alike, including lavender, black, orange and red. The more intense the colour, the higher the premium, says the GIA.

“Jade is normally associated with the colour green ... But they [customers] do like other colours too. Though green still fetches the highest prices, if there are other jadeites with excellent colour, tone and texture, like a red or lavender gem, then the price might be higher than a green one.

Lay says the price does not only depend on the quality of the gem but also the technique of the lapidarist — the artisan who cuts, polishes and engraves precious stones — and the craftsmanship. Such pieces have garnered “premium prices, going into the tens of thousands of ringgit”. 

Unlike diamonds, jade has no international pricing system and still falls within the ambit of coloured stones. Thus, prices can vary based on the different expert advice given. There is a standard colour nomenclature — a system of colours — but without an experienced eye and specialised knowledge, any enthusiast can be easily fooled. 

Looi Mary Lee, a coloured stone hobbyist and seller, purchased a jade bangle imbibed with chemicals just to show her customers the difference between the best quality and treated gemstone. She says it took her more than a decade to be able to distinguish a good one. But at times, a poorly treated gemstone can be identified if one has had the experience of buying jade. 

“I bought the bangle for RM300 just to observe and learn how different a chemically treated bangle looks like compared with the top-grade ones ... the colours and shades are not evenly distributed ... But most people don’t notice it until someone points it out,” says Looi, who runs a quaint shop called Dazzles and Dangles.

There are gemstones that are poorer in quality, usually labelled “B” and “C” grades. They are still considered natural jades, but may have been chemically bleached or injected with polymer. Such pieces are prone to discolouration due to being exposed to bright light, body heat or household detergents.

Despite the lack of a clear pricing and grading index, Rui Vivre’s Lay says the cost of jade has been on the rise since mid-2000. She advises collectors to buy pieces from reputable jewellers, reiterating that it is not easy to tell the real gems from the fake ones.

Several jewel traders recommend that collectors or investors obtain a certificate of authenticity as the jade sourced from Myanmar is slowly gaining a status similar to that of blood diamonds as a result of the insatiable demand.

Last December, The New York Times reported that much of the wealth generated from mining for the natural resource is controlled by the elite members of the military, the rebel leaders fighting them for greater autonomy and the Chinese financiers, robbing the Myanmar government of billions in tax revenue.

Some countries have taken measures to stop the unethical trade of jade. At the height of the craze for jadeite rocks, the US banned imports of the gems, including rubies, from Myanmar under the Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act 2008.

Under the Act, Burmese gems processed in and exported from other countries are also prohibited. But the ban does not apply to gems imported for personal use, exports of Burmese gems from the US or to block the sale of Burmese gems already in the US.

According to an investigative report, the profits are being used to finance a ferocious ethnic conflict, an epidemic of heroin use and a staggering number of HIV infections among the Kachin minority, who mine the gemstones.

To be certain, look for jade with certificates of authenticity from China, Hong Kong and Singapore. At Rui Vivre, Lay personally sources the gems and ensures that they come with independent lab certifications. This is to ensure buyer confidence, she says.

Lay also deals in jade and other gems brought to her by customers. She assesses their originality and provides a certificate upon request. 

“The certificates we have now are national level certificates from China and Hong Kong, which are well-known for jade and gems, as well as Singapore. The certifications from these three countries are internationally recognised,” she says.

Despite the growing demand for jade, there are no auction houses in Malaysia to help investors secure the best price for their gemstones. “They would have to fly to Hong Kong or Shanghai to sell their gems,” says Lay.

 


This article first appeared in Personal Wealth, a section of The Edge Malaysia, on March 30 - April 5, 2015.

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