Myanmar Gemstone Auction Commences on Schedule, Despite Boycotts

Myanmar (Burma) commenced on Wednesday its semi-annual gem auctions of rubies and other precious stones despite a boycott and world condemnation of the country’s regime.

The auctions may be a temporary solution for a cash-strapped authoritarian government in the face of international calls for boycotts and sanctions. As reported by the International Herald Tribune, the state-run Myanmar Gems Enterprise, which facilitates the auctions, said that gems sales brought in $296.9 million last year and were the third largest source of revenue for the ruling junta after fossil fuels and timber.

A bill is waiting for approval in the U.S. Congress and an agreement ratified by the 27 countries of the European Union in October to ban the import of gems and timber from Myanmar.

The U.S. bill was introduced October 18 and calls for a ban on the “importation of any gemstone or rough unfinished geological material mined or extracted from Burma, whether imported as a loose item or as any part or component of a finished piece of jewelry.” The bill is supported by a number of trade organizations, including Jewelers of America (JA).

A few high-end jewelers, such as Tiffany & Co and Cartier have already instituted in-house bans, ensuring their customers that they will not source rubies or other gems from Myanmar.

On the ground in Myanmar, there are merchants who, despite having regularly purchased gemstones from the government in the past, are hesitant to do so now. Their reluctance however stems more from economic uncertainties at how the ban will affect the trade in Burmese gemstones, than from moral imperatives.

The present auction is set to run through November 26.