How Modern Mines Are Reshaping the Sapphire Market

I n recent decades the global landscape of sapphire mining has evolved dramatically. While stones from the mythical mines of Kashmir and Burma are still coveted by collectors the emergence of new mining regions such as Madagascar, Thailand and Cambodia are creating a more sustainable market, while catering to the tastes and desires of a new audience.

“The global supply chain for gemstones is undergoing a transformation. With the depletion of Burmese sapphires and their skyrocketing auction prices, Madagascar sapphires, discovered in 1994, have emerged as a significant player in the market. These sapphires offer exceptional quality, featuring a wide range of colours, clarity, and brilliance, providing new buyers with a valuable secondary option for high-quality gems," explains Stewart Young, Sotheby’s Head of Jewellery, Asia.

To understand why the industry has shifted, we need to dig a little deeper. Sapphire mining originated thousands of years ago with ancient civilisations in India and Ceylon (now Sri Lanka), although the most prized stones came from Kashmir in the early 19th century.

Kashmir sapphires were discovered almost by accident when an avalanche in the Zanskar range of the Himalayas unexpectedly exposed a rich deposit of sapphires featuring a prized cornflower blue colour and velvety texture. Following a short period of extraction at what’s now referred to as the famous “old mine,” deposits became depleted making Kashmir sapphires extremely rare and covetable. Today they continue to set the benchmark for excellence in the global market.

Around the same time as the old mines were discovered in Kashmir, Burmese sapphires were also gaining prevalence. Known for their intense, velvety blue colour these prized gems were previously reserved for royals until British colonial rule in the late 19th century made them more accessible to European gem traders and jewellers like Cartier. Together with Kashmir these heritage sapphires are still revered as much for their scarcity as their beauty, with documented stones continuing to drive record prices at auction.

Sri Lanka has often been cited as having the longest continuous history of sapphire production – it’s where Princess Diana’s much-acclaimed sapphire was sourced alongside other legendary gems like the Logan Sapphire and Star of India – with the gemstone-rich region of Ratnapura having produced sapphires for over 3,000 years. While blue sapphires from Ceylon are still the most covetable, the country is now known for its abundant supply of colours including pink, yellow, orange, purple and green. Among these is the rare padparadscha sapphire, which is named after the Sinhalese word padmaraga, and known for its unique pink-orange hue.

In modern times, new opportunities for sapphire production have come from different parts of the world as the advent of modern, large-scale mining has created new economies. While mining once depended on small-scale, artisanal methods, new technologies have allowed for mechanised, high-volume operations, which are being used in places like Australia to much success.

While sapphire production peaked in Australia in the 1970s and 1980s, it was soon eclipsed by other hot spots in Madagascar and East Africa. In 1998, massive deposits were discovered in ancient river gravels of the Ilakaka-Sakaraha region in Southwest Madagascar, transforming the area into a major mining hub known for high-volume, high-quality stones which rival Sri Lanka in quality and beauty.

Tanzania and Kenya have also become key players thanks to the gem-rich geological zone running along the east coast of Africa, which has resulted in abundant stones ranging from high-quality untreated sapphires in yellow and blue varieties.

Specialised production hubs have also followed, particularly in Southeast Asia. While Thailand and Cambodia are home to important sapphire fields, Bangkok and Chanthaburi have become global cutting and heat‑treatment centres, with the majority of the world’s sapphires passing through Thailand for processing and trade.

“With the growing population and increasing demand for sapphires, particularly high-quality untreated stones, modern sapphires can offer comparable value to heritage gems such as those from Kashmir, Burma, and Ceylon," says Young. "While heritage stones possess historical significance, modern sapphires stand out for their vibrant colors, rarity, and advancements in cutting techniques that achieve superior brilliance compared to traditional methods."

A more consistent supply has transformed how sapphires are used in the world of fine jewellery. Basaltic sapphires from Australia, Thailand, Madagascar and Nigeria have inspired more playful and contemporary jewellery designs thanks to their unique characteristics and colours.

Unlike metamorphic sapphires which are formed in marble, Balsatic stones are crystallised under high-temperature volcanic conditions giving them a darker, more intense saturation due to high iron and titanium which allows them to absorb more light. These stones possess distinct characteristics that lend themselves to more contemporary designs and creations. There are also unusual varieties such as the multi-hued “parti” stone or polychrome sapphire – an untreated Balsatic sapphire that display two or more distinct, unblended colours within a single stone – which lend themselves beautifully to more creative pieces.

While the demand for rare stones from the prestige mines of Kashmir or Burma shows no signs of waning in the auction market, more consumers are turning to these modern mines not just because they offer high quality untreated stones. As transparency and traceability become more important, these new sources promise a documented chain from mine to market while incorporating more sustainable practices that balance production with respect for the land. Today’s operations deploy water-recycling methods and land rehabilitation to reduce their ecological impact. This is a far cry from traditional mining processes which pose serious safety concerns for workers and the environment.

“Sapphires continue to be highly sought-after gems due to their aesthetic appeal and growing demand as an investment tool. Their rarity, limited supply, and historical price appreciation at auctions make them a compelling investment choice. Additionally, their unique characteristics and cultural significance ensure their ongoing popularity and value in the market,” says Young.

Past Auction

High Jewelry

23 April 2026 | 11:00 AM HKT | Hong Kong