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Coronavirus dampens diamond auction

Kitco News

Gemfields said its latest auction brought in $11.5 million.

Of the 25 lots offered, 76% were sold. Average price was $4.01 per carat, a fall from the $4.75 per carat Gemfields reported at its auction in August.

Adrian Banks, Gemfields' Managing Director of Product & Sales, said the Hong Kong diamond market has "endured multiple successive misfortunes."

"The results of our first auction of 2020 are in line with prior auctions of commercial quality emeralds and demonstrate a stable underlying market," said Banks. "It was however evident that the fallout of COVID-19--the corona virus--dampened what might otherwise have been a buoyant result. Firstly, the uncertainty surrounding Chinese consumer demand in the wake of COVID-19 has understandably created negative sentiment in the mid-stream market. Secondly, a handful of our key auction customers did not travel to Lusaka as a result of the increased risk associated with COVD-19 and thirdly, the Hong Kong market--important for both gemstones and jewellery--has had to endure multiple successive misfortunes".

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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