In a previous article I discussed the turquoise market explaining the two-tier market for turquoise. As much, or more, than 80% of all turquoise mined is too soft to be used in jewelry without treatment to harden the stone and darken the color. The dominance of treated turquoise creates confusion in the market for consumers because of the great price differential between treated turquoise and natural. Since natural turquoise is much rarer there is less available in the market and it sells for higher price. This is especially true for the higher grades of turquoise.
Pricing in any market is based upon the interaction between a willing seller and buyer to determine a market price. Supply and demand will largely determine the nature of that transaction. Assuming constant demand increased supply will lower prices and decreased supply will raise prices. Assuming constant supply the same is true for increased or decreased demand with fewer buyers lowering price and more buyers increasing competition and prices.
Many markets will have wholesale and retail pricing. Wholesale prices are largely determined by the volume of merchandise purchased. Walmart offers low prices because of their immense purchasing power. For any supplier the ability of offering wholesale pricing is dependent upon the supply of product. Ford produced 4.4 million vehicles a year. Ferrari produced 8,400. Ford is able to provide wholesale distribution of its product because any reduced margin is compensated by total revenue. Ferrari is not positioned to do the same.
Regarding turquoise pricing we find wholesale distribution in the treated market due to the high supply of treated turquoise available. This is not so with natural turquoise, especially at the higher grades. The only instance where wholesale pricing of higher grade may be found in the turquoise market is when large collections of turquoise are purchased. These collections seldom come to market and buyers able to purchase the entire collection at discount may be few.
There is no established market for turquoise pricing. The market is highly segmented and regional. Higher grades are seldom found for sale especially with reliable provenance. The Callais Collection provides a forum for buyers and sellers to see actual sales transactions of high-grade turquoise.
Mike Ryan II
Santa Fe
December 2024