Gemfields, a leading colored gemstone miner, has expressed disappointment over the results of its most recent auction, held from November 4 to November 21, 2024. Despite strong bidding for top-quality emeralds, lackluster demand for lower-grade stones weighed heavily on the overall performance.
Highlights and Results
The auction featured high-quality rough emeralds from the Kagem mine in Zambia, with the following key outcomes:
- Total Revenue: $16.1 million.
- Lots Sold: 30 out of 43 offered.
- Average Price: $113.96 per carat.
Gemfields’ Managing Director of Product and Sales, Adrian Banks, stated, “While bids for the top-quality emerald lots were near record highs, the lack of interest and lower prices for lower-grade lots made the overall results highly disappointing.”
Challenges in the Market
Banks pointed out that the luxury and gemstone markets are still facing significant challenges. However, the high participation rate and enthusiastic bidding for premium lots highlighted continued demand for quality stones. Lower-performing lots were withdrawn from the auction due to insufficient bids.
Additionally, Gemfields’ management cited intense competition as a contributing factor to the auction’s underwhelming results. Banks specifically noted the market disruption caused by a competing Zambian emerald producer:
“As mentioned during our September 2024 auction of commercial-grade emeralds, we continue to see significant disruption in the emerald market caused by a Zambian producer offering stones at low prices. This is a short-term dynamic and does not reflect structural changes in supply or long-term market demand.”
Looking Ahead
While the auction highlighted ongoing pressures in the gemstone market, it also underscored the resilience of high-quality stones. As the industry adapts to these challenges, Gemfields remains committed to delivering exceptional gemstones and fostering sustainable practices.