AGTA Article: Buckle Up—Japanese Akoya Pearl Prices Have Skyrocketed 80% with No End in Sight

[pearlsngems]

Article by Jennifer Heebner, Editor in Chief, American Gem Trade Association​

Buckle Up—Japanese Akoya Pearl Prices Have Skyrocketed 80% with No End in Sight

 

[katbran]

I know that the virus issue is a big one and has cut down on the production over the past few years. Demand is sucking up all the top pearls in all varieties. Prices have increased a good 30-40% for South Sea just from demand. The auctions are all clearing out and at record prices. Be glad that you've bought what you have !

 

[yssie]

So… Yeah, I’m not getting my supearl akoya, am I

 

[LilAlex]

Prices have increased a good 30-40% for South Sea just from demand.

I think it's mostly @yssie

 

[Pearlescence]

It's right about the crush at the Feb fair. I could not get anywhere near the akoya aisles for a couple of days. Rammed and my elbows were too English and not pushy enough!

 

[NY_Resonant]

I think this sentence says it all: "Japanese Akoya Pearl production in 1990 totaled 67 tons; last year there were only 9.5 tons."

The world's population in 1990 was 5.3B and it is now at 7B.

14% of the production, 132% of the population... The rise of China demand...

Recipe for disaster on pricing.

 

[lovedogs]

Ugh, bad news for us consumers! I still really regret not buying a very high quality strand offered to me about a year ago when prices were lower. I'm now buying one of the same quality for about 1.5x the price (same vendor, just much less supply)

 

[michellechan2211]

Welp, I always promised I would buy myself a very high quality strand of the classic white akoya when I get married. Perhaps I should consider one now before the prices skyrocket even further.

 

[Pearlescence]

I suspect there will be at least a few farms either getting going again or increasing their stock, having seen the price increase. Strong possibility of a glut in a year or two. Akoya pearls are in the water for a relatively short time so the market may see a lot more stock quite quickly.

 

[NY_Resonant]

Yes, i’m sure the economic incentive to farm will make them try to increase production in the next few years! Question is, will they succeed in short term when so many (70%+) of juvenile oysters died in 2019-2020?

This “Summer Atrophy” seems to be caused by a virus that acts up when the waters warm up above 25 degrees celsius.

Mass mortality of pearl oyster (Pinctada fucata (Gould)) in Japan in 2019 and 2020 is caused by an unidentified infectious agent

Mass mortality of 0-year-old pearl oysters, Pinctada fucata (Gould), and anomalies in adults were observed in Japan’s major pearl farming areas in the summer of 2019 and 2020. Although adult oyster mortality was low, both adult and juvenile oysters ...

www.ncbi.nlm.nih.gov

 

[Pearlescence]

Other akoya areas not affected so far

 

[yssie]

Other akoya areas not affected so far

What do you mean by other akoya areas?

 

[pearlsngems]

I think she means other areas that produce akoyas, like Vietnam.

 

[Cinders]

I was so disappointed when I saw this news. I foolishly thought I could wait a bit to buy. Guess I'll just have to really hone in on what I truly want---this does increase the time I have for thinking/browsing.

 

[NY_Resonant]

Unfortunately ocean pearls/oysters are facing a number of environmental factors that in my personal opinion will make QUALITY salt water pearls harder and harder to find.

The Effects of Global Warming on Pearl Oysters - Ganoksin Jewelry Making Community

There had been a "flurry of worry" about the effects of global warming on pearl oysters that experts are looking into. Read on to know more.

www.ganoksin.com

“
"The quality of a pearl tends to be dependent on how fast the pearl grows," observes Jerry. "As water temperature increases, the growth of the oyster increases and they lay down nacre faster, which is believed to reduce the quality of the pearl."
“

“Recent studies have also shown that higher water temperatures make oysters more susceptible to pollution. Research by a team of University of North Carolina scientists on nonpearl-producing oysters demonstrated that relatively low levels of heavy metal pollution interfered with the shellfish's metabolic processes, which, combined with higher seasonal water temperatures, could lead to disease and death.”

“pearl growers in the South Pacific have also observed that the higher water temperatures associated with an El Nino weather pattern can lead to significant die-offs.”

“For South Sea and other saltwater pearl growers, another danger may be more frequent and more severe tropical storms. "The oysters themselves live in an ocean environment and have a degree of adaptability to storms," says Taylor. "But the way we farm is different than a natural habitat. The oysters are more exposed on a farm than if they're on rock or coral. Storms also bring in a lot of sediment, and that changes the sea chemistry, which will affect their health directly."”

“A study from the Woods Hole Oceanographic Institute noted that tropical ocean waters have become dramatically saltier in the last 40 years, a change which could accelerate if rising temperatures and increased melting of ice sheets results in slowing or shutting down of planet-wide circulation of fresh and salt water in Earth's oceans. Salinity has been shown in multiple studies to have a direct effect on the growth rate of pearl oysters, with salinity levels in excess of 40 parts per thousand shown to slow growth significantly.”

“Higher levels of atmospheric carbon dioxide may also make the oceans more acidic. A team of researchers from the National Oceanographic and Atmospheric Administration Pacific Marine Environmental Laboratory in Seattle found measurably lower pH levels in ocean waters from Tahiti to Alaska, as well as increases in dissolved inorganic carbon. Scientists predict that as levels of dissolved carbon dioxide in sea water rise, the skeletal growth rates of calcium-secreting organisms, such as corals, plankton, and shellfish, could be reduced.”

 

[yensjewelry]

Basically it's the reopening of China that caused the craziness. Lots of online influencers buying directly while doing livestreams.

 

[WilliamBramley]

This may not be a good time to buy Japanese Akoya Pearl in Japan.

pizza tower​

 

[katbran]

All Sea pearl prices have skyrocketed ....

 

[MakingTheGrade]

I find this even more interesting compared to the posts in RockyTalk about dropping diamond prices. Some of the discussion involves the changing tastes of younger buyers. I will say I’m seeing a lot of pearls in the sub30 crowd these days, in a lot of fashion forward ways. I guess it’s ironic that Pearl popularity seems to be increasing among youth just as its supply is decreasing. I’m assuming it’s just coincidental?

 

[mellowyellowgirl]

I find this even more interesting compared to the posts in RockyTalk about dropping diamond prices. Some of the discussion involves the changing tastes of younger buyers. I will say I’m seeing a lot of pearls in the sub30 crowd these days, in a lot of fashion forward ways. I guess it’s ironic that Pearl popularity seems to be increasing among youth just as its supply is decreasing. I’m assuming it’s just coincidental?

Are they sticking to freshies?

Freshies are so nice and cheap and satisfying!

I find because it’s cheap, you don’t need to fret so much about the buying process. Chances are you’ll have fun with it and make it worth your money. I can see this appealing to someone younger.

My younger sister was the one who put me on freshies. She kept pining over them so I finally gathered the energy to see what she was constantly nattering about.

 

[MakingTheGrade]

I assume the bulk of it is freshies based on the look of them and guessing at what more 20 something’s can afford lol. I live and work near a university campus. Though I’m sure some of them are wearing their moms akoyas. I actually get a lot more compliments from younger folk about my pearls than older folk. I feel a little weird when they ask me where I got them cause I think they’re expecting an answer like Hot Topic and then I have to be like..uh…Japan? Technically?

I think part of the appeal with youth is also that they’re viewed as more ecologically sustainable and don’t have the same controversies of mining gems/diamonds. Sort of part of the whole organic spirit of nature thing.

 

[yssie]

Quote from Jeremy Shepherd (owner of Pearl Paradise) last week - copied from another location. Sounds like akoya and tahitian prices definitely aren’t going to be more favourable this year!

 

[MakingTheGrade]

Boooooooo

 

[MakingTheGrade]

At this rate I’ll never afford that supearl akoya holy grail. Assuming I can ever even find it.

 

[yssie]

At this rate I’ll never afford that supearl akoya holy grail. Assuming I can ever even find it.

Same, sigh! We should just split a strand one day. If one ever shows up.

 

[MakingTheGrade]

Same, sigh! We should just split a strand one day. If one ever shows up.

Deal! They don’t accept bracelet entries right?

 

[yssie]

Deal! They don’t accept bracelet entries right?

They don’t sadly! BUT I wonder if they’ll certify a “small” necklace that’s sized for two wrists?

 

[Dreamer_D]

Is there much of a secondary market for Akoyas?

 

[MakingTheGrade]

Is there much of a secondary market for Akoyas?

I don’t think so. Given lack of consistent centralized grading I know I’d be wary overall. I’ve only ever bought second hand pearls from other pricescope folk.

 

[Dreamer_D]

Seems like with the dramatic increase in pricing it might be something that develops more… or perhaps people looking to spend less just stick with less expensive retail pearls?