Shandong's precious stones soar in value(2)

"There is little supply now. The scarcity makes it more valuable. If the same bag of deposits were sold it would cost at least several million yuan," Liu said, rueful that he had let go some precious stones too early and too easily.

To improve the fame of its sapphires, the county has held a string of promotions across the world in recent years, including the 2010 Press Conference for International Sapphire Fashion Trends in Hong Kong and the Cross-Straits Cooperation and Development Forum for Jewels in Taiwan.

Thanks to these activities, a large number of fine sapphires from Changle have caused a stir among jewelers around the world. They include a 760-carat sapphire in the shape of a drop of water exhibited at the 2010 Shanghai Expo and a 1,764.8-carat stone shown in Hong Kong. It is one of the largest of its kind in the world.

"Increasing numbers of jewelry lovers find themselves attracted to our sapphires and collect them. Some wealthy investors even buy them for speculative reasons because the stock market and real estate are no longer returning the profits they once did," said Cheng Xiaopeng, vice-general secretary of the Changle Jewel and Jade Industry Association, explaining another reason for their rise in value.

However, although the price of sapphires from the county has rocketed in recent years, Cheng said the price is still significantly lower than the international market price.

"For quite a long time, about 60 percent of sapphires in the county have been exported to other countries, such as Thailand and the United States, where the price will double, sometimes even triple," Cheng said.

Sapphires, along with diamonds, rubies and emeralds, are regarded as the world's top four valuable gemstones. They have long been popular among Western people, especially members of European royal families, who regard them as representations of love and faithfulness. A point in case is Prince William, who proposed to Kate Middleton with an 18-carat oval blue sapphire ring, which was his mother Diana's engagement ring.

"Sapphires do not share the same cultural identity in China as they do in the West. They are mainly bought by jewelry lovers and collectors. The majority of Chinese customers do not acknowledge their cultural value as they do for jade and diamonds," said Shi Hongyue, vice-general sectary of the Jewel and Jade Industry Association of China.

"Hotan jade prices have increased about 5,000 times in China over the same 10 years. Once ordinary people take to sapphires, their price will be quite different," said Shi, indicating the vast potential market.

To help more people know about the precious stone, an annual international sapphire festival has been held in Changle for 10 years.