New Approach Makes Investing in Emerald Much More Affordable

Gemfields, a London-based gemstone and mining company, reported recently that their revenues have more than doubled; in the past year. The company is a leading producer of the world’s emerald supply with an approximate 20 percent market share and is looking forward to substantial market growth in the years to come.

Earlier this month, Gemfields announced that their Kagem emerald mine in Zambia has the potential to produce 1 billion carats of emerald and beryl generating a value of close to $900 million over the course of the next twenty years. Needless to say, shareholders of the company are more than happy over the recent announcements, knowing that they put Gemfields in a strong growth position moving forward; into the future. The company’s stock rose 11 percent on the news of the announcement, currently valuing Gemfields stock in the neighborhood of £135 million.

Analysts say that Gemfields has created the world’s first integrated pipeline, that will bring emeralds directly from the mine into the international market; allowing consumers to trace the origin of each precious gemstone. At this stage, the company is focusing their marketing efforts on promoting Zambian emeralds, that are less costly than the established Colombian gems. With this approach, Gemfields is looking to open a new market to consumers seeking an investment in emerald, that is more affordable.

These recent developments will certainly solidify Gemfields strong position in the colored gemstone marketplace. I feel that  the company has utilized their strengths in hard assets and marketing savvy, to put themselves in a leading position in an industry that grows steadily, as demand increases for a dwindling and/or limited supply of precious gems and gemstone investment opportunities.