While the results of a predominantly commercial grade raw emerald auction held in Lusaka, Zambia from February 18-21, had been in line with previous commercial grade emerald auctions, and demonstrated a stable underlying market, there was glaring fallout from Covid-19, or the coronavirus, which cushioned what might otherwise have been a buoyant outcome, Gemfields Product and Sales Director Adrian Banks said Monday.
“First, the uncertainty surrounding Chinese consumer demand in the wake of Covid-19 has understandably created negative sentiment in the middle market.”
“Second, a handful of our main auction clients did not travel to Lusaka as a result of the increased risk associated with Covid-19, and third, the Hong Kong market, important for both gemstones and jewelery, he has had to endure multiple successive misfortunes, “noted Banks.”
The emeralds were mined by Kagem Mining, in which Gemfields has a 75% stake and the Zambian Industrial Development Corporation 25%.
During the auction, 29 companies submitted bids, generating total revenues of $ 11.5 million, with an average value of $ 4.01 / ct.
64% of the karats offered were sold.
The proceeds of the auction will be repatriated to Kagem in Zambia, and all royalties due to the government of the Republic of Zambia will be paid for the full sales prices achieved at the auction.