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Gemfields Sees Robust Demand at Ruby Auction
Dec 22, 2016 4:00 AM
By Rapaport News
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RAPAPORT... Gemfields sold $30.4 million worth of rubies and corundum at
an auction in Singapore last week as prices indicated a healthy market for gemstones.
The company sold 1.1 million carats, out of a total 1.4 million carats offered from the Montepuez ruby deposit
in Mozambique, it said. The
auction was 80 percent sold by volume and 85 percent sold by market value.
While the average price of $27.79 per carat indicated “good
overall global demand” relative to previous auctions, Gemfields explained that a variation
in quality and stone sizes skewed a direct comparison of top-line sales.
“The prices achieved, combined with the high percentage of
the value sold, fully support our view of ongoing solid demand for responsibly
sourced Mozambican rubies across key markets and categories,” said
Ian Harebottle, Gemfields’ chief executive officer.
In total, 39 companies placed bids and items under the
hammer included both treated and untreated rough rubies. However, some
customers were unable to attend amid the negative impact India’s
demonetization policy had on cashflow, Gemfields pointed out. This followed the
company’s earlier decision to postpone an emerald auction from December to
February so that clients can adjust to the new business environment.
India invalidated its INR 500 and INR 1,000
currency notes last month, resulting in a liquidity crisis that damaged demand
for diamonds and gemstones as the sector is highly cash-focused.
Gemfields said it has sold $41.1 million worth of rough
gemstones since the start of fiscal 2017 that began July 1. These also include rough emeralds and beryl from
the Kagem mine in Zambia.
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Tags:
beryl, corundum, Demonetization, emeralds, Gemfields, gemstones, Ian Harebottle, India, Kagem, mining, Montepuez, Mozambique, Rapaport News, rubies, ruby, Singapore, zambia
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