MANDALAY, Myanmar - Prices for jade are falling in the market in Mandalay, central Myanmar, a trend traders attribute to China's economic slowdown and a decline in purchases by Chinese-linked international criminal organizations following a crackdown on fraud rings.
"The bubble has burst," one trader said, expressing mixed feelings about the downturn in a market long shaped by strong overseas demand.
Kachin State in the country's north is home to some of the world's largest and most lucrative jade mines, and Mandalay is a major hub for jade processing and trading.
The market serves as a key center linking production areas with buyers, particularly from China and Taiwan, as well as overseas Chinese communities around the world, who view jade as both a lucky and precious commodity.
Unlike gold, jade does not have an international benchmark price. Instead, value is determined individually based on the clarity and color of each stone, making trading highly dependent on visual inspection and negotiation between buyers and sellers.
During a visit to the market in mid-May, rough jade stones were lined up in rows across trading areas as intermediaries moved between them inspecting quality.
Brokers shone lights onto translucent green cross-sections of the stones, examining them closely to assess clarity before negotiating prices.
In another section of the market, Chinese buyers had set up booths where they appraised and purchased jade brought in by Myanmar sellers. Transactions took place after individual inspections and discussions over quality and value.
Prices for mid-grade jade surged between 2021 and 2023 before beginning a steady decline from 2024, according to one intermediary.
"The system of relying on China and criminal proceeds was unbalanced," he said, describing the structure of the market.
The expansion of fraudulent operations in Southeast Asia, triggered by the COVID-19 pandemic, coincided with the rise in jade prices during that period.
From 2023 onward, crackdowns on fraud networks by Myanmar authorities continued, and jade prices subsequently fell, another dealer said. He said everyone in the trade was aware that money laundering had been driving up the market, and enforcement action had changed the tide.
Traders also point to broader instability in Myanmar as a factor affecting the sector. They cite intensified fighting between ethnic armed groups and the military following the 2021 coup, which has reduced supply from mining areas in Kachin State.
Trading continues in Mandalay's jade market, although prices have fallen since 2024, according to traders and intermediaries.
