Pressure From Zambia Forces Gemfields to Reschedule Emerald Auction

A Gemfields advertisement for its Kagem emeralds from a recent marketing campaign.

Gemfields has rescheduled its auction of emeralds from the Kagem mine in Zambia due to Zambian officials’ insistence that the company hold its auctions within the country’s borders.

The London-based colored gemstone exploration, mining and marketing company planned to auction higher grade rough emeralds in Singapore from June 10-14, but a change of policy on the part of the Zambian authorities caused the company to postpone the sale, it said through the Proactive Investors website on July 1. The auction will now take place July 15-19 in Lusaka, the capital city of Zambia.

The date change will affect Gemfields financial reporting for the fiscal year, which ended June 30. The delay means the company only completed two auctions during the fiscal year that generated $42 million in revenue, compared with four auctions held during the prior fiscal year that generated $77.9 million.

The directive was issued in April in the form of a written request by the Zambian Ministry of Mines, Energy and Water Development. Despite ongoing discussions, the country’s position apparently hasn’t changed. Even though Gemfields said Zambian officials have insisted there is no ban on overseas auctions.

The government of the Republic of Zambia owns 25 percent of the Kagem mine while Gemfields owns the remaining 75 percent. In addition, the two parties own a 50-50 stake in the Kariba amethyst mine, which will also be affected by the outside selling ban. However, nearly all of Gemfields income comes from the Kagem mine.

What’s at issue is the government’s belief that it isn’t receiving enough of the economic benefits from the mine.

“Zambian gemstones have for a long time been sold on foreign markets, a situation that has contributed to capital flight and denied Zambians of the much needed benefits from the resource,” Yamfwa Mukanga, Zambia mining minister, said in its written request issued in April.

For its part, Gemfields insists that it needs to sell Kagem emeralds at places that will likely get the most interest and the best price in order to compete with other emerald hubs, such as Colombia and Brazil.

Since 2007, Gemfields has been creating a mine-to-market initiative for its emeralds using the Kagem mine as a single, traceable source for its emeralds. In addition, it is working on a program to mine its emeralds in adherence to fair-trade practices and in accordance with environmental, social and safety standards. The distribution of its emeralds includes the Faberge luxury jewelry brand, which it owns. 

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Timepiece Tuesday II: Swiss Watch Sales, Bulgari Exhibition in Singapore

 Swiss Organization Predicts Record Watch Sales
Switzerland’s watch exports may rise to a record in 2011 as demand for luxury timepieces continue to recover, said Jean-Daniel Pasche, head of the Federation of the Swiss Watch Industry. Shipments this year may break the record of 17 billion francs ($17.7 billion) of exports set in 2008, Pasche said in an interview today on the final day of the Geneva watch fair. Exports in 2010 were "a bit" higher than the 16 billion Swiss francs of watches and components the industry shipped to other countries in 2007, Pasche said. The trade group will publish exact figures for 2010 in early February, Pasche said. Exports in the first 11 months of the year rose 22 percent to 14.6 billion francs, the group said last month. Read more.

Bulgari Watch Exhibition
Bulgari is hosting an exhibition featuring the first collection of timepieces created after Bulgari integrated the luxury Swiss watchmaking companies, Gerald Genta and Daniel Roth, under its own brand last year. "Bulgari: A New Face In Time," will open Wednesday at the Luxe Art Museum in Singapore. While the exhibition will still boast plenty of sparkle, courtesy of a selection of haute jewelry and vintage watches dating as early as 1945, the focus will be on the new Bulgari Gerald Genta and Daniel Roth collections, unveiled at last year's BaselWorld international watch fair . Read more  (Pictured, Daniel Roth Collection: Grande Lune and Papillon Chronograph)


Christie’s Watch Business Booming in Dubai 
Dubai is poised to become a target market for rare, luxury watches with sales in the emirate rising 42 percent since 2008, London-based auction house Christie’s told a Dubai-based publication. Two auctions of rare timepieces in the emirate last year generated sales of $2.5 million, Christie’s said, a rise of 19.5 percent on the revenue generated the previous year from rare watch sales. The revenue represents a rise of more than 42 percent since 2008, Aurel Bacs, international head of Christie’s Watches told the publication, Arabian Business. “The growth in watch sales since 2008 in Dubai has been beyond our expectations.” he said. “With this level of growth we expect Dubai to become an increasingly significant auction centre for our global watch sales.” The priciest piece sold in Dubai last year was a Patek Philippe piece with moon phase display (pictured), which sold for $116,500.

Hublot to Open Singapore Flagship Store

Luxury Swiss watch brand, Hublot, said it will open a flagship store in Singapore on September 24.

The new location on the ground floor of the luxury Mall at Marina Bay Sands—where Singapore’s first casino recently opened—is a joint effort with specialist watch retailer, The Hour Glass, its partner in Southeast Asia. Hublot said the store expresses its “Art of Fusion” philosophy, with a combination of steel, carbon fiber, aluminum and singular alloys; along with wood, leather, rubber and glass. The design as a whole features a contemporary look and atmosphere.

The store marks the 26th Hublot boutique worldwide, and the sixth in Asia..

For the occasion, Hublot will reveal its "Vendôme Collection." With a name and a logo paying tribute to the international symbol of luxury—celebrating the Hublot Place Vendôme boutique conceived by New York architect Peter Marino and scheduled for inauguration in December. The Vendôme Collection is the first collection of models exclusively available in Hublot boutiques.

“Each new opening reflects the great vitality and impressive expansion of HUBLOT, with every month seeing the inauguration of new exclusive locations in the most prestigious settings around the world,” said Jean-Claude Biver, Hublot CEO.

In addition to Paris Place Vendôme, the brand will be opening boutiques in Beijing, Aruba, Beverly Hills and New York.