Ruby mines auction held in November organized by Gem fields

by Touchstone Gems 22. December 2014 17:40

How it all started – Gemfields captured the most of the available mines starting form emerald and followed by amethyst and ruby, they are auctioning all these when market is on boom. Aims of these auctions are to bring the buyers on same bench, open the prices for all, selling of all available goods in good prices.  After monopolizing the market, Gemfields invite all the buyers from different countries to for bidding.   

There are also some dark sides of these auctions which we are going to discuss further in this article.

 - Comparison with last ruby gemstones auction – Everyone wants to be one step ahead and this competition is enhancing the bidding value auction by auction.  Buyers were limited when all these started but now every big buyer who has the money to invest is taking part in such auctions. Indians are playing a vital role in every auction. 

- How these auctions make the ruby trade transparent – Every buyer knows the value in which lots were sold and in result of that market becomes more transparent. This is also one another reason behind skyrocketing prices of rubies. Auctioneers are quite smart and they don’t disclose all available goods in one auction, they generate the temptation in buyers and consumers are frequently lured into remaining lots available in upcoming auction. In 90% cases, price in next auctions goes up. Every buyer wants to be safe when buying such expensive rough and gemstones and they prefer to buy from well established and authentic companies like Gemfields and at some point it diminishes the illegal trafficking of expensive gems. 

- Effects on Mozambique community on ruby auctions held by Gemfields – Let’s talk in perspective of Mozambique ruby, earlier before auctions miners used to sell at low prices (comparatively) but now they get the goods prices from companies like Gemfields. It’s quite beneficial for workers and they get the good wages and along with that company like Gemfields is paying attention on their health issues and providing them medical services. 

- Why these auctions are important if you are dealing in rubies - If you are dealing in rubies then it is quite important for you to keep an eye on all these auctions because such auctions become price and trend setter now. For example if you have been in rubies’ business for a long time and having good stock but you are away from all these auctions so you won’t get updates about current prices jump and fall and this will affect your business heavily in a long term.  

- Who is benefiting by these rubies auctions? – 

Not only Auctioneers are benefiting but also it is helping in tourism of country where auctions are taking place. Along with all that it is improving the life standard of mine workers and providing them goods wages and services.  Before this ruby auction held in November, maximum of rubies material from Mozambique was coming to Thailand for further processing but this auction opened the market for every buyer and specially Indians and Thais are prominent buyers. 

Here is chart of Burma ruby mention the origin place to destination - 

 

Let’s talk about dark side of all these auctions - 

If your girlfriend was kidnapped, wouldn’t you give any ransom that the kidnappers asked for? This is the same thing that has happened with Ruby, the king of coloured Gemstones. Big brands like Gemfields, Cristies and others are monopolizing the market and selling at their own prices. 

 

Shortage of material – As we mentioned above that auctioneers do not display all available material in one auction and they wait for people to rush on remaining material and this generate the shortage of goods in market. 

 

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