As global oil prices continue to rise due to the ongoing conflict in the Middle East, experts believe the effects will spread far beyond petrol stations and airline tickets. Industries around the world are already facing higher transportation, shipping, and production costs, including the gemstone trade.
International oil prices recently climbed above US$100 per barrel, while major financial institutions described the situation as one of the biggest oil supply disruptions in modern history. For industries that depend on mining, international transport, and global trade, higher energy prices usually mean higher costs across the board.
The ruby market is no exception.
Why higher production costs rarely reverse
When oil prices increase, businesses spend more on fuel, electricity, transport, and logistics. In the gemstone industry, this affects everything from mining equipment and cutting workshops to international shipping and insurance.
What many people do not realise is that prices do not usually return to their old levels even once oil prices come down again. Instead, the market often settles at a new, higher price point. Over time, this creates inflation, where the overall cost of goods gradually becomes more expensive than before.
This is one reason why luxury assets and rare collectables often rise in value during periods of economic uncertainty.
Inflation and the decline of fiat currency value
This matters particularly for rare natural assets such as fine rubies. Unlike fiat currencies, which governments can expand through monetary policy and increased money printing during periods of economic instability, natural gemstones remain inherently limited in supply. A Burmese ruby from the Mogok Valley cannot simply be produced on demand.
As printable currency becomes increasingly devalued through inflationary pressures, many investors begin looking toward tangible assets with scarcity and long-term value retention. Historically, gold has played this role. Increasingly, however, high-quality untreated gemstones are entering the conversation among collectors and wealth-preservation buyers.
Rising global demand meets declining ruby supply
The ruby market was already experiencing strong upward momentum before the latest oil crisis emerged. Demand for natural, untreated rubies has continued to rise globally, particularly for stones with strong colour saturation, minimal treatment, and documented origin. At the same time, supply from historic mining regions has become increasingly limited as yields decline from older deposits.
This growing imbalance between demand and supply has already influenced pricing in recent years. As noted by Veerasak, top-quality Mozambique rubies saw significant value growth between 2012 and 2021, while exceptional untreated rubies continue to achieve strong results at auction houses. Fine rubies above five carats remain among the most sought-after coloured gemstones in the market.
Why investors are looking at gemstones
For many collectors, the appeal lies not only in beauty but also in scarcity. Unlike diamonds, which have broader commercial availability, fine, untreated rubies remain exceptionally rare. This rarity becomes even more significant during periods of inflation and currency uncertainty.
In practical terms, the current oil crisis may accelerate an existing trend rather than create an entirely new one. Rising transportation costs, higher mining expenses, and continued global inflation could further push ruby prices upward over the coming years. Meanwhile, fiat currencies may continue to lose purchasing power relative to hard assets.
A growing case for fine rubies
As a result, gemstones are increasingly viewed not simply as luxury purchases but as portable stores of wealth with long-term resilience. With rising inflation, higher production costs, and continuing pressure on global supply chains, many experts believe fine ruby prices could continue rising over the coming years.
For collectors and buyers considering investment-grade rubies, working with an experienced and reputable gemstone specialist is becoming increasingly important. A highly respected name in the industry, Veerasak specialises in fine natural rubies, including untreated stones sourced from some of the world’s most respected origins. Those interested in learning more about investment-quality rubies and current market opportunities are encouraged to contact Veerasak for further guidance and gemstone recommendations.
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