Why ruby stones have great value?

Hotnewstoday360: Ian Harebottle, CEO of Gemfields gemstone, possesses an emerald the size of a pineapple are being stored in a safe place. He has yet to sell because of this rare blue stone that no one really knows how much it is worth.

This is the paradox of how to operate the gemstone industry: Everything plentiful supply can sell high price while scarcity forcing many beautiful stones are not tradable. This business is very different from the diamond - the most famous gemstones world market with high liquidity and nearly impossible to bargain.

Normally, prices rise with increases Gems offers for jewelers need enough inventory to adjust them to customer promotions hang.Vi example, the emerald has appreciated 1,000% in 5 years when Gemfields Plc and other companies expand mining, and marketing campaigns by Hollywood star Mila Kunis representative as demand soared.

Show Harebottle want to do the same with ruby (ruby). According to him, the quarry's Montepuez in Mozambique Gemfields contain about 40% estimate ruby known source in the world, can help increase yields threefold compared to the target of 8 million carats this year.

The potential benefits from very attractive ruby. In the first auction in Singapore in December last year, sold the ruby Gemfields high quality with an average price 689 USD / carat, making the price of 66 USD / carat emerald of similar kind becomes small. The expansion of production is reinforced by the growing demand in China, where people see red as a symbol of prosperity, health and wealth. Thus, ruby became a very profitable investment.

Rising prices double

Harebottle said: "Ruby clearly has the potential to increase the value greatly. In a few years, we can make the price double ruby ".

Gemfields market accounted for 20% and emeralds become the largest manufacturer in the world. They plan to repeat the record for ruby. The auction in December grossing 43.3 million dollars after the company's ruby sold at the highest price.

Investec Plc, said: "We expect to be successful with ruby Gemfields as a way to make emerald prices rose. Montepuez ruby mine will be one of the most amazing discoveries in Africa for many decades. "
Largest ruby

Gemfields has sold a 40.2 carat ruby from a quarry Montepuez at auction with an undisclosed amount. Whatever is not nothing compared to the 6,200 carat emerald pineapple, it still has great potential because until now, the Ruby is the world's largest certified "125West" only 18.696 carat weight.

Harebottle is supervising the project amethyst and sapphires in Gemfields, simultaneous management of activities related to the emerald and ruby. 52-year-old CEO hopes to give an alternative solution for the production of diamond as they gradually narrowed. Most diamonds are near the ground had been disturbed and has less going to put new mines into operation. This situation makes some manufacturers have had to hook the buyer.

Clifford Elphick, Gem Diamonds CEO Ltd. said: "We can not attract more customers in the absence of new sources. If you can not give the customer, they'll find another place. "

Cullinan stone

Largest rough diamonds weighing 3,106 carats world, named Cullinan, found in South Africa in 1905 and donated it to the British royal.

Global diamond production is about 146 million carats in 2013, far exceeding the ruby. If Gemfields achieve 8 million carats this year, equivalent to 10% of the ruby market, total world production will be about 80 million carats.

Harebottle said 1.2 kg emerald his holding may be worth $ 1 million five years ago but today will reach 10 million. Time stones unique position as long as it will be more valuable.

He said: "We call it 'baby elephant', hopefully later will find the mother whale and elephant announced. If I have yet to find additional members in the past 6 years, then maybe this is one more member Cullinan ".