Australia's opal and sapphire mining industry has fallen from its peak in the 1980s and 1990s into a significant low today. This is not due to exhaustion of the resource, but instead an over-reliance of the Australian miner on achieving a fair price for the gemstone product from offshore middlemen dealers. Gemstone and geological research is also at a low as Federal higher education expenditure has fallen with research institutions relying increasingly on private funding in an environment of restricted autonomy and flexibility for researchers. What little remaining research skills the universities have is being bled into the private sector as a result of the mining boom and encouraged by lower than average academic salaries._x000D_
Nevertheless, some highly innovative research has been taking place, often by self-funded individuals and retired academics simply with a desire to advance the understanding of the particular branch of science in which they are interested. New models for the formation of sapphire and opal are now beginning to be applied to the exploration for these gemstone commodities. This research, together with well thought out plans for managing the gemstone product through its value-adding steps to the jewellery retail level, has the potential to bring about a resurgence in the Australian gemstone industry.