Editor’s Note
This article reports on the Colombian emerald industry’s strong performance, with a 10% growth projection and an upcoming auction of raw gems.
According to Fedesmeraldas, the extraction of these gems by year-end is projected to reach 4 million carats.
The second raw emerald auction of the year by Fura Gems is set to commence shortly. This event will be held simultaneously in Colombia and Dubai. This occasion marks the fifth instance of such an activity since the Indian multinational established its presence in the country, significantly impacting the negotiation dynamics of this valuable gem.
These auctions have entered to compete in the raw stone market, meaning they are acquired directly by local and international clients as they come out of the mines.
It is noteworthy that 95% of national production is destined for foreign markets, as explained by Óscar Baquero, president of Fedesmeraldas. Therefore, these events represent a crucial window for the commercialization of these gems. Currently, approximately 3.8 million carats, on average, leave the country destined for other markets.
However, the main commercialization strategy for Colombian emeralds is to present them cut and exhibit them at international fairs, an initiative promoted in collaboration with the National Emerald Fund.
According to the guild leader, approximately 60% of production is commercialized in cut form, in contrast to 40% in raw state. The country generates around 4 million carats annually, generating revenues between US$140 and US$150 million per year. In international comparison, Baquero highlights that, although we do not lead in quantity, we stand out for having carats with a higher value.
Despite other producers, such as Zambia, being able to sell a larger volume of stones, they do so at a lower value.
Although the mentioned values are usually consistent, this year a slight increase in carat production has been observed, which, added to fluctuations in the dollar price, will translate into higher revenues than 2022 by the close of this year.
In recent years, the industry has experienced greater investment, allowing for increasing technification and formalization of the business. Companies like Fura Gems, Muzo, or Esmeraldas Santa Rosa stand out for their commitment to consolidating the sector and their contribution to local communities. These companies directly employ about 2,000 people, mainly in the regions where they operate.
Despite this progress, Baquero maintains that additional investments are required to achieve greater formalization of the business.
However, some companies, like Fura, have announced ambitious investment plans. The company’s CEO, Dev Shetty, mentioned in a past interview with Portafolio that they expect to allocate a significant sum for the construction of the world’s largest emerald mine in terms of value.
Baquero highlighted that these investments, along with initiatives to certify the stones, contribute to guaranteeing the quality and treatments that the emeralds have received.