While the results of an auction of predominantly commercial-quality rough emeralds held in Lusaka, Zambia, from February 18 to 21, had been in line prior auctions of commercial-quality emeralds, and demonstrate a stable underlying market, there was evident fallout of Covid-19, or the coronavirus, which dampened what might otherwise have been a buoyant result, Gemfields product and sales MD Adrian Banks said on Monday.
“Firstly, the uncertainty surrounding Chinese consumer demand in the wake of Covid-19 has understandably created negative sentiment in the midstream market.
“Secondly, a handful of our key auction customers did not travel to Lusaka as a result of the increased risk associated with Covid-19 and, thirdly, the Hong Kong market – important for both gemstones and jewellery – has had to endure multiple successive misfortunes,” Banks pointed out.
The emeralds were extracted by Kagem Mining, in which Gemfields holds a 75% interest and the Industrial Development Corporation of Zambia 25%.