A disastrous auction for Gemfields-Emerald Rough Auction

The Gemfields Emerald Rough Auction recently held between 4- 7 November, 2008 at Zambia, seemed to have offered a good product value, amidst an environment that discouraged networking and information dissemination. The approach of the organising company- Gemfields Resources PLC resulted in around 80 percent of the lots being unsold. Participants were irked by the arrangements through the four days of the auction, with some boycotting the event. As per feedback from participants, neither did the company permit business networking within the members at the venue or through mobile telecommunication, nor did it encourage smooth trading. Reserve prices were not set, and were revealed to bidders at the end of the auction. Although the terms & conditions and reserve prices are informed in a generalised manner at the start of the auction, the terms were changed throughout till completion of the auction. The event could take some learning from more professionally managed auctions like ones hosted by Christies, Sotheby’s or other professional auction houses, as felt by some participants. The event registered 15 participants, 14 from India.