Gemfields: Stones that whisper potential profit
It may not be for the faint-hearted, but if you fancy adding something out of the ordinary to your portfolio, Gemfields has no peers on the JSE and offers a strong dividend yield
Gemfields has a “mine and market” model, as it also owns luxury jewellery manufacturer Fabergé. As we will see in the numbers, you wouldn’t invest in this group for the “market” side of that equation; the money is being made in the mines.
There are four precious stones: diamonds, sapphires, rubies and emeralds. Gemfields has significant exposure to two of the four. If it annoys you that you can’t invest directly in De Beers within Anglo American, then Gemfields is worth a look. It’s just important to understand that through diamonds allegedly becoming a girl’s best friend, De Beers did a wonderful job of creating steady demand for its stones. The same cannot be said for the others, where demand (and thus pricing) is volatile...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.