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...

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