Gemfields Sets Record Price of $322 per Carat at Ruby Auction
Gemfields, a leading UK-based gemstone mining company, has achieved a record-breaking price of $322 per carat at its latest mixed-quality rough ruby auction. The auctions, held between 25 November and 11 December 2023 in Bangkok and online, generated a total of $46.2 million from the sale of 143,613 carats of rubies. Notably, 14% of the lots (by weight) were left unsold, reflecting the selective nature of the auction process.
This impressive result comes despite ongoing global economic challenges, including the economic slowdown in China and geopolitical instability in various regions. However, the auction outcome is seen as a positive development, particularly given the uncertainty in the market. Importantly, civil unrest in Mozambique, where Gemfields’ Montepuez ruby mine is located, did not affect the company’s operations or the success of the auctions.
In comparison, Gemfields’ previous auction series held in June 2023 raised $68.7 million from the sale of 216,000 carats. The average price per carat in the latest auction has increased slightly from $317 in June to the new record price of $322. This price growth signals robust demand for Gemfields’ rubies, despite some signs of weaker bidding and softer prices in certain segments of the auction.
Adrian Banks, Gemfields’ Managing Director of Product and Sales, remarked, “While we observed some softer prices and thinner bidding, the overall average price per carat reached a new record high. The withdrawal of a lower-quality lot had only a limited impact on the results, showing strong demand for higher-quality rubies.”
Earlier in October, Gemfields reported a 16.7% drop in revenue for the six months ending 30 June 2023, largely due to weaker market sentiment. Despite these challenges, the strong performance at the latest ruby auction demonstrates Gemfields’ resilience in navigating a complex and fluctuating global market.
The outcome of this auction highlights Gemfields’ position as a leader in the global ruby market, setting a new benchmark for the value of rough rubies and reaffirming investor confidence in its business strategy.
