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Gemfields stock shines after record auction returns

By David Burrows

09:51, 10 December 2021

Polished and cut rubies
For rubies specifically, total auction revenues of $88.4m were recorded – Photo: Alamy

AIM-listed Gemfields, a London-based supplier and seller of coloured gemstones, saw its stock price jump 4.56% in mid-morning trading today.

The company’s stock price hit 14.9p after it revealed annual gemstone auction revenues reached an all-time high of $239.6m (£181.5m) across emeralds and rubies. The prior record was $200.6m in 2019.

For rubies specifically, total auction revenues of $88.4m were recorded, an all-time high for Montepuez Ruby Mining Limitada’s auctions.

COIN

122.08 Price
+1.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.38

TSLA

236.32 Price
-0.040% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.20

AMC

6.86 Price
+0.150% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.09

VODl

0.70 Price
-1.550% 1D Chg, %
Long position overnight fee -0.0253%
Short position overnight fee 0.0033%
Overnight fee time 22:00 (UTC)
Spread 0.0025

Growth in the ruby sector

Commenting on the auction revenues, Gemfields’ managing director of product & sales, Adrian Banks, said: “This has been the strongest ruby auction in Gemfields’ history and we’re very pleased with the trajectory and growth of the downstream ruby sector. Professionalised and dependable supply has always been the key to unlocking growth.”

Banks added: “The strength of the results we’ve seen this week for both emeralds and rubies means that Gemfields has achieved a new record for annual gemstone auction revenues of $239m, a very pleasing result for 2021.”

Read more: Anglo American predicts 35% growth over next decade

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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