Why Coloured Gemstones Are Here To Stay (Especially In Asia)

Coloured gemstones have long been an investment class for the discerning individual, particularly women. A recent trip to Bangkok has proved that not only is the rare coloured gemstone industry going strong – it has also rebounded post-covid and been in more demand than ever.

Those in the industry will be familiar with the name Gemfields, owner of Swiss luxury jewellery brand Fabergé and operator of some of the world’s most important coloured gemstone mines. Early humans’ fascination with colour, and desire to own lasting examples of it made them fall in love with gemstones, for their beauty was unwavering. In a world where people aged, flowers wilted and sunsets disappeared, the vibrance of gemstones remained unchanged. For them, the only logical explanation was that gems were divine, forever linking gemstones to the spiritual world.

Since the liberalisation of mining in the early 1990’s, Zambia has risen to become one of the most valuable emerald sources in the world. The Kafubu mining area is worked by artisanal and small-scale mining operations archetypical of the coloured gemstone industry, as well as one of the world’s largest open-pit mines for coloured gemstones, Gemfields’ Kagem mine. Zambia has accounted for more than 70% of global emerald production since 2010, and Kagem accounts for at least 50% of the total emerald production from Zambia, which means that Kagem produces some 35% of the world’s emeralds. In doing so, Kagem has delivered USD 166.9 million in tax revenue and dividends to the Zambian government and spent USD 3 million on community projects and conservation efforts (to December 2022). Located in the southern part of Zambia’s copper belt, this open-pit mine lies in the centre of a mineral-rich province. Since acquiring the mine in partnership with the Zambian government in 2008, Gemfields has transformed the operation and the communities that surround it.

The same goes for rubies, which Gemfields has established in Mozambique with its Montepuez Ruby Mining operations. The Montepuez ruby mine in north-eastern Mozambique is situated on one of the most significant ruby deposits in the world and covers 33,600 hectares. Mozambique has fast become the world’s top ruby exporter, yielding record-breaking auction results for Gemfields. Projections calculate the mine to be productive for a further 13 years. Following US-led bans in 2008 on rubies originating from Burma, Mozambique’s consistency and transparency of supply has instilled renewed confidence in rubies and has enabled high-end jewellery brands to create extraordinary capsule collections with fine rubies they would typically have spent years collecting.

For KV Gems, an auction partner of Gemfields, founder Joseph Belmont stresses that you can’t go wrong with investing in unheated gemstones. The only way is up, and he would rather buy a good quality gemstone than a diamond. The supply is getting less and less and the demand will always be there and continue to grow. This is clearly evident from the results of this year’s Gemfields auction in Bangkok, which saw total auction revenues of USD 43.7 million, an all-time revenue record for any Kagem emerald auction. 100% of the 35 lots were sold, with an average realised price of USD 165.55 per carat, an all-time record for any Gemfields emerald auction. The impressive 37kg Kafubu Cluster comprised 44% of the weight offered at the auction.

Over the years, sustainability, credibility and traceability have become the most important factors for gemstone buyers, particularly those who invest in large high-quality gemstones. Since Gemfields owns the mines and operates their own auction platform, buyers can rest assure that they are purchasing from the source. Responsible sourcing for Gemfields also means implementing industry-leading policies and practices across operations, transparency in its auction sales process, an active role in working groups to modernise the sector, projects to improve health, education and livelihoods for the communities around its mines and conservation efforts to protect Africa’s great wildlife and biodiversity. This is reflected in Gemfields Foundation, the charitable arm of Gemfields, through which donors can contribute funding to directly support community and conservation projects in Africa, magnifying the scale of the work already carried out by Gemfields itself.