102 GENERAL CHARACTERS OF PRECIOUS STONES 



'.rhe causes which operate to produce fluctuations in demand are more intricate and 

 difficult to trace. The earning capacity of a nation, and consequently the general prosperity 

 of the people, the general trend of events, the wide-spread existence of a taste for ornament 

 or display, fashion, and such like considerations, are all factors which influence the demand 

 for precious stones. Since precious stones are purely articles of luxury for which there is 

 no absolute need, and which it would be possible to dispense with completely, they are only 

 extensively used in times of peace and commercial prosperity when the necessities of life are 

 abundant and easily obtained. At such times, and especially when public events create and 

 foster a taste for display, the price of precious stones will rise. When, however, the 

 purchasing-power is diminished in consequence of war or of industrial crises retrenchment 

 will first be made, naturally not in the necessities of life but in its luxuries ; there will be 

 little or no demand for precious stones, and, moreover, the heirlooms or recent acquirements 

 of old families will be thrown on the market and will help to accentuate its downward 

 tendency. 



Many examples of this rise and fall in the value of precious stones may be found in 

 French history. Thus, during the period, of lavish display immediately preceding the 

 French Revolution, when the European Courts vied with each other in extravagance and 

 luxury, the price of precious stones, and especially of diamond, rose high. During the 

 Revolution and the series of miserable wars which followed, precious stones fell in value, 

 only to rise again steadily during the long years of peace which followed Napoleon''s fall. 

 This steady rise culminated in the year 1848, the events of which caused a sudden but 

 temporary fall of seventy-five per cent, in the value of precious stones. 



The tremendous effect of a commercial crisis is shown, for example, by the statement of 

 the traveller J. J. von Tschudi, that during the great depression in trade and exchange of 

 1857 and 1858 in Brazil diamonds sank to one-half their original value. At such crises 

 the larger and more valuable stones suffer the greatest depreciation, since the demand for the 

 smaller and more moderately priced stones does not fall away to the extent of that for the 

 highly priced stones. The rise in price of precious stones during a period of prosperity is 

 exemplified in a remarkable manner by their value in the sixteenth and seventeenth centuries 

 when treasure from the rich silver mines of South America came pouring into Europe ; 

 and again after the discovery of the Californian and Australian goldfields in 1848 and the 

 following years. 



The demand for precious stones regardless of their kind, or for one kind in preference 

 to another, is affected very powerfully by the arbitrary and capricious fashion of the 

 moment. At times of national disaster or commercial depression the effect of fashion on 

 the general demand for precious stones must necessarily be small, but at other times, when 

 the demand has revived, this factor makes itself felt in a preference now for one kind of 

 stone now for another. The most beautiful and costly stones, the diamond, ruby, sapphire^ 

 and emerald are indeed always sought after, but it is otherwise with those of less prominent 

 beauty. The recent history of "oriental cat's-eye," a variety of chrysoberyl found in 

 Ceylon, forms an instructive example of the way in which a stone may be suddenly brought 

 into favour. For many years there was no demand whatever for this stone, it was stocked 

 by no jewellers, and its value was correspondingly low. When, however, the Duke of 

 Connaught gave a betrothal ring containing chrysoberyl to the Princess Louise Margaret 

 of Prussia the stone became fashionable, first in England and then elsewhere. So extensively 

 was it used that Ceylon could scarcely supply the demand, while the price of course rose 

 very considerably. The freaks and caprices of fashion afford much scope for speculation in 

 precious stones. As an example of this may be mentioned the acquirement by a French 



