Valued throughout history as an object of utility, ritual, trade, art and adornment, jade — a generic term for two distinct mineral aggregates, jadeite and nephrite — is one of the oldest known gems.

Considered a royal gem in China from the earliest dynasties to present time, jade is inextricably woven into ancient and modern Chinese culture. Nephrite, the first known form of jade, dates back some 8,000 to 12,000 years in China and was an integral part of life in the region. Although the finest jade was reserved for the Imperial courts, the use of jade crossed all socioeconomic boundaries. Most of the jade used in China prior to the seventeenth century was nephrite or “Ming Jade.”

Long History

Ming or nephrite jade was used extensively in the Ming Dynasty, which lasted from 1368 to 1644. It was used for functional and decorative objects, as well as jewelry. In the seventeenth century, during the early Qing Dynasty, large-scale importation of jadeite from Northern Burma caused nephrite to lose popularity in China. “In time, jadeite eclipsed nephrite in value, and is today considered gem jade,” explains Jeff Mason, a principal in Mason-Kay, a Denver, Colorado-based wholesaler specializing in fine jadeite since 1976. Nephrite is valued for its antiquity, carving and provenance, rather than its intrinsic material value.

Jadeite also comes from places like Guatemala and Russia, although the finest material is believed to originate in Burma. Nephrite, on the other hand, while not found in Burma, is mined in a number of places, including Taiwan, New Zealand, Russia and British Columbia, as well as in the U.S. in California, Alaska and Wyoming.

Robust Market

As auction sales, especially recent auction sales, have proven, the market for jade is robust, especially among Asian buyers, with fine, gem-quality jadeite and nephrite antiquities commanding premium prices. Christie’s Hong Kong achieved the world-record price of any jadeite sold at auction in its 1997 sale, when the “Doubly Fortunate” jadeite bead necklace fetched $9 million. More recently, the auction house sold a beautiful jadeite bead necklace for more than $7 million in its June 2010 Hong Kong sale. “This shows that jadeite with exceptional quality will always be sought after by collectors,” says Shiu-Fung Chiang, jadeite specialist for Christie’s Hong Kong.

The Oei Tiong Ham necklace, the first jadeite jewel of major historical importance to be auctioned at Sotheby’s in New York in over 30 years, sold for $1,986,500 this past December, according to Lisa Hubbard, Sotheby’s chairman, international jewelry, North and South America. A successful Chinese businessman, Oei Tiong Ham is said to have purchased two necklaces composed of beads from an Imperial court necklace from the leading jadeite dealer in Peking, who had allegedly obtained them from the family of Emperor Puyi. “This piece does not represent perfection in every bead, but it has strong provenance, which adds to its value,” explains Hubbard. “It has a compelling story that everyone can follow.”

According to jewelry expert and author Antoinette Matlins, jadeite prices have strengthened significantly over the past five years, with this year’s Hong Kong sales showing strong prices for the finest Imperial jadeite. “The finest, highly translucent, deep emerald green is in the highest demand,” she says.

Undoubtedly, says Hubbard, there is strong regional desire for jadeite among Asian countries, with China dominating the market, which is why Sotheby’s began holding jade sales in Hong Kong in 1984. Today, China’s rising middle class is hot for jade and is increasingly in a position to pay the price to get the finest.

“We’ve seen a remarkable increase in the number of Chinese buyers participating in our sales in the past few years,” explains Chiang. “Mainland clients come to our auctions, as they know that we offer a variety of Chinese antiques, paintings and art works, as well as jewelry. No doubt China will become one of the strongest markets in the world.”

Defining Jade

Jade refers to two chemically different stones: jadeite, a pyroxene or silica-bearing mineral, and nephrite, an amphibole, or a ferro-magnesium silicate. But they share common characteristics, most notably their toughness, due to an interlocking crystal structure that’s resistant to fracture. Jade is impervious to oils, perfumes and most cold acids. On the Mohs scale of hardness, which measures surface abrasion, jade ranks between 6 and 7.

Jadeite is rarer than nephrite, so it commands a higher price. Moreover, jadeite’s finest green coloring is not seen in nephrite, which typically displays greens that are more subdued, darker and less saturated.

Color is the top value factor in jadeite and a very specific shade of green is most valued. “The finest color of green, known as Imperial jade, is close to that of fine Colombian emerald — both gems owing their green to chromium,” explains Mason. Other shades of green are more common, including yellowish green, grayish green and blackish green. Next in the hierarchy of color value is lavender, then red, yellow, white and black.

The color range for nephrite is not as broad as that of jadeite and is usually characterized by a certain dullness and waxy texture. Old stones from Turkestan are sometimes creamy white, known as mutton-fat, while most modern nephrite is gray-black to olive green. There’s also a coal black nephrite; most black jade is this material.

Jade often exhibits several colors in one piece. Although one pure, uniform color is preferred, combinations such as green and lavender, red and green, or white with green are also desirable. The Chinese have special names for blended or combination colors, including moss-in-snow, chicken-blood, valley-leaf, old mine and spring grass.

Translucency is also a factor in value. “If the crystals are small and fine enough,” says Chiang, “light rays penetrate the stone easily and create a watery effect. Otherwise, the stone looks opaque and dull.” Jade is sold by the piece, unlike most gems today, which are sold and evaluated by carat weight.

The most popular jewelry forms in the jadeite market are bead necklaces, bangles and cabochon. “Cabochons are more readily available. But it’s difficult to find a strand of jadeite beads well matched with similar color and translucency to form a necklace,” explains Chiang. “That’s why bead necklaces command the highest price among all jadeite jewelry at auction.”

Jadeite is grouped into three types: A is natural jadeite, B is natural jadeite that’s bleached in acid to remove staining, then impregnated with wax or polymers to improve translucency and C is dyed, often dyed B jadeite. Type B jade is commonly used to make low-value jadeite with coarse texture more marketable. But the only way to detect polymer in jadeite is with infrared spectroscopy.

Common jade fakes include serpentine, carnelian, aventurine, glass, grossularite and soapstone. Lately, Mason reports seeing more dyed green quartz than any other imitation for green jadeite. He also notes that materials known as “new jade,” “Honan jade,” “Korean jade,” “metajade” and “Sinkiang jade” are almost never jade. Matlins says that all important jadeite pieces are now accompanied by lab reports confirming the material is natural, with no treatments.

Mason says that jade fills a special niche in the U.S. market and that more American designers are using jade, particularly those in high fashion. Still, he believes that Western markets will never desire jade with the passion shown by the Chinese.