Emerald & Ruby News

A short time ago we wrote about mounting evidence for an uprise of the emerald market.

Since then demand has grown slightly but there is more. Gemfields, owners of Zambia´s Kagem emerald mine and one of the world´s leading suppliers, has just published the results of their latest auction of emerald rough and the figures are proof that the uprise is gaining momentum.

The auction, held in Singapore from July 11th to July 15th, was by far the most successful of the seven auctions held by Gemfields since July 2009 and generated record sales of USD 31.6 million.

Read more here: Results of Singapore Rough Emerald Auction

We want to stress some truly remarkable facts:

• Prices for high quality emerald rough climbed 63% compared to December 2010!

• out of 25 lots weighing 1.07 million carats "only" 72% (18 lots weighing 0.74 million carats) were sold. This is the lowest percentage of all seven auctions held so far. Nevertheless sales were nearly 62% up from the previous record (19.6 million dollars achieved at the Johannesburg auction in December 2010).

At the Singapore auction Gemfields for the first time also offered emerald and beryl rough material from sources other than their own Kagem mine in Zambia, namely from Brazil and from other Zambian sources. Gemfields described the results as "not material", at the same time assuring that "...the Company will continue to refine and evolve the opportunities of selling rough emeralds from other sources of supply".

Obviously Gemfields is very serious about their quest to expand into other branches of the gem business. On June 8th the company announced that for USD 2.5 million it acquired a 75% share of Mocambique´s arguably most important ruby deposit in Montepuez district, Cabo Delgado province.
The quality of the Montepuez rubies has been likened to Burma and Winza (Tanzania) rubies.

Mining activities of the former 100% percent owner Mwiriti Limitada [sic] were limited (pardon the pun) to what was described as "relatively small and informal". With Gemfields as competent and experienced partners we are sure this will change rather soon.

Now, mining in Winza could have been a mere flash in the pan and supplies of Burma have dwindled during the last two years. In the light of all this we will follow Gemfields´ ruby activities closely and keep you posted.