Wanted: star to make emeralds shine like diamonds
LONDON – Ian Harebottle is searching for a global celebrity to do for emeralds what Marilyn Monroe and Audrey Hepburn did for diamonds.
The chief executive of Gemfields PLC, the biggest producer of the green stones, said he wants “to bring in an A-lister to be the face of emeralds,” mirroring what the actresses did in past decades that helped then-monopoly producer De Beers sell diamonds as symbols of lasting love. Clear gems still dominate today’s $21-billion US precious stone industry.
Rarer than diamonds, yet cheaper, emeralds are gaining among consumers. At current growth rates they may take more than 20 per cent of their competitor’s market share within two decades, according to the trade group the International Diamond Manufacturers Association.
Gemfields’ share price has gained 78 per cent this year.
“Sometimes rarity is not an asset,” Harebottle said in an interview.
“You need the volumes of supply, which is what we’re doing.”
Harebottle’s strategy, from buying African ruby and emerald mines to leveraging iconic names, is supported by Brian Gilbertson, ex-CEO of the world’s largest miner, BHP Billiton Ltd.
Gilbertson heads an investment fund that licensed the Fabergé brand name to London-based Gemfields and bought a controlling stake in 2007. His son, Sean, is on the board.
High-quality emerald prices increased more than 10-fold in the past three years, out pacing a 21 per cent gain in diamonds, according to calculations based on Gemfields and WWW International Diamond Consultants Ltd. data.
Still the red, green and blue stones comprise just 10 per cent of global gem sales and lack standardized pricing.