Tag Archives: ruby

Ruby; Burma Days!

The view from a Bagan Temple:  Photo:  R. W. Wise

The view from the top of a temple showing some of the estimated four thousand temples and pagodas in the Burmese town of Bagan: Photo: R. W. Wise

by Richard W. Wise, G.G.

©2010

Its hot in Burma but the early morning in Bagan is cool and breezy.  Just off our porch with its planked and varnished teak floors, a broad leaved Banana Palm nods sagely in the light breeze, a giant Acacia tree bends its ancient back, its knarled branches splayed like arthritic limbs form an umbrella over our villa’s roof.  A manicured lawn lies between us and the wide Irrawaddy River.   From the opposite bank, along a ridge of ragged hills, a glint of gold off a temple dome flickers through the dawn shroud of silvered white mist.  The mist clings though the day, turning to blue as the morning wears on.  It is the dry season and the Irrawaddy, the mother of rivers, has receded leaving a broad expanse of bare sandy shoulder exposed on either bank.

Why is the Lord Buddha smiling?
Why is the Lord Buddha smiling?  Temple of the Smiling Buddha, Bagan, Burma.  Photo:  R. W. Wise

Located in the central part of the country, ancient Bagan was the center of a city-state that flourished between the 10th and 12th Centuries until Kublai Khan’s Mongols ravaged the place in the mid 13th Century.  Today, the chief reason to visit is to see the 3,000 or so temples and pagodas that punctuate the parched countryside.   As our guide tells us, a pagoda is solid; a temple is hollow like a church with golden statues of the Buddha inside.   During the height of Bagan’s prosperity, kings constructed the largest temples as monuments to their power and perhaps more importantly, as a way to gain cosmic merit so that after their deaths they might be reborn as some higher level of being.

At The Ruby Mines:

It is tempting to believe that the lack of fine ruby in the world market is the result of the U. S. embargo, but it is not.  Burma is flanked by India and China and both these emergent powers are far more important trading partners than is the United States.  The Indians have always greatly valued ruby—in the 17th Century, French dealer Jean Baptiste Tavernier wrote of buying rubies in Europe and bringing them to India because he could get better prices from the Mogul nabobs— and China’s nouveau riche have developed a taste for luxury goods.  No, it is simply that, after a thousand years, the ruby, at least the accessible ruby has been mined out.   Certainly this is true of Mogok’s secondary deposits; every bit of alluvium in the mountain valley has been turned over not once, but a hundred times.  Mogok village itself was once moved to get at the gemstones and the small lake at the valley’s floor is a flooded excavation.   According to my Burmese agent, a Shan tribesman born in Mogok, there are still gems buried in the hardrock, but they are deeper and require blasting, heavy equipment and much more capital to mine.  Investors, however, are rather reluctant to invest.

More to come…

Hong Kong Gem & Jewelry Show 2007

Prices at the 2007 Hong Kong Show

by Richard W. Wise

©2007

Dateline Hong Kong.

This Thursday the Hong Kong Post reported that the U. S. dollar had reached a historic low against most major world currencies. Perhaps more important, the dollar which has been steadily losing ground against the Thai baht since its 2001 high, recently went into freefall. Historic data. Although the dollar along with the euro remains the international currency of choice, Bangkok is the capital of the colored gemstone trade and Thai dealers think in baht and the dollar has lost 19% against the Thai currency since the September 2006 show.

Ruby & Sapphire:

That said, prices of ruby and sapphire that were up dramatically in dollar terms at last year’s show ( read my 2006 report) have shown little upward movement. This is possibly the result of very poor sales at this September’s Bangkok show and would seem to indicate that Asian dealers are reluctant to pass along additional increases to a U. S. market currently viewed as on the edge of recession. The September Hong Kong show is one of the big three, the triumvirate of shows that sets future market prices. It will be interesting to see if dealer’s restraint will last until the all important Tucson shows in February particularly if the dollar continues to slide.

As usual, dealers report that supplies are down, particularly for high quality Burmese ruby and sapphire. This is the gem dealer’s eternal lament and one is tempted to ask; “yeah right, so what else is new” except that a new pro-democracy movement has apparently broken out in Burma with thousands of people taking to the streets in the country’s two major cities Burma news updates. This has got to have a negative effect on supply, short term. Will the brutal crackdown that is sure to follow lead to new economic sanctions or a boycott of Burmese goods in the U. S. is difficult to predict.

The gemstone business in Burma exists on two levels; on the one hand large scale mining is in the hands of the government. If you are doing large scale mining, you are in business with the army and much of the important material mined in large scale operations is marketed through the semi-annual government auctions. But, gem mining is mostly a cottage industry. At least 50% of the gems produced are from small scale mom and pop ventures that fall beneath the government’s radar and is smuggled out of the country. Having been on buying trips to Burma, it is my opinion that any new sanctions will probably backfire and impact the small scale subsistence miner more than the generals.

Stay tuned.

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