Gemfields reported weaker-than-expected sales at its recent emerald auction, held in Bangkok between November 4 and 21. The auction, which featured emeralds from the Kagem mine in Zambia, generated $16.1 million in revenue, a significant drop from previous sales. The company sold 70% of the 43 lots offered, totaling 141,084 carats, marking the lowest total in more than two years.
In comparison, the March auction brought in $35 million, while the November 2023 auction netted $30.8 million, with 94% of lots sold. Despite the overall underperformance, Gemfields noted that high-quality emeralds did well, with bids nearing all-time record prices for top-tier goods.
Adrian Banks, Managing Director of Product and Sales at Gemfields, explained that the disappointing results were largely driven by lower bids for lower-quality stones. “While top-quality lots saw strong demand, the auction’s overall outcome reflects weaker interest in lesser-quality grades,” Banks said. He also pointed to challenging conditions in the broader luxury market and gemstone sector, which may have affected buyer behavior.
Another factor impacting the auction was increased competition from a rival Zambian emerald producer. This company, which regularly holds auctions in Dubai, has been selling emeralds at lower prices, making it more difficult for Gemfields to attract buyers. “We continue to face market disruption from a competing producer offering emeralds at very low prices,” Banks added. “While this is a temporary issue, it has affected our recent results.”
To mitigate the impact of these challenges, Gemfields chose to withhold certain lots from sale when bidding did not meet expectations. Banks remains optimistic, stating that the company is taking steps to support the market and believes the current dynamics do not signal a long-term shift in demand or supply.
In conclusion, while the auction’s total sales fell short of expectations, Gemfields remains confident in the resilience of the emerald market and is adapting its strategy to navigate ongoing competition and market challenges.
Related topics:
- $5M Cartier Diamond Necklace Smashes Pre-Sale Estimate at Christie’s Auction
- KP Members Need to Redefine Conflict Diamonds
- EU Criticizes KP Chair’s Remarks and Lack of Progress at Plenary
