Afghani Gem Supply Down, Market OK

By Marlene A. Prost

 

< Afghani blue tourmaline from Stephen M. Avery. Photo © AGTA/John Parrish.

While this fall's fighting and political chaos disrupted gem production and supply from Afghanistan, dealers remained optimistic that the effect would be temporary.

That optimism has been boosted by a series of events, including when the Northern Alliance and other ethnic groups began to rout the Taliban in mid-November, and when Afghan leaders signed a pact on December 5 to create an interim government for the war-torn country.

"For the time being, it's a little bit rough, but hopefully . . . it will be smooth again," said Wali Beekzad, owner of Five Lions Gems in San Jose, California. Beekzad, a proud supporter of the Northern Alliance, predicted that business would "get back to normal."

Afghanistan has gained a reputation for producing a number of stones, particularly emerald, lapis lazuli, ruby, tourmaline, aquamarine, and kunzite, many of them mined in the northern areas of the country.

However, in the days immediately following the terrorist attacks in New York and Washington D.C., the country's bad reputation tainted its gemstones.

"Immediately after September 11, the general public refused to purchase Afghan gems," said Gary Bowersox, president of GeoVision Inc. and an experienced dealer in Afghani gems. "Within five days after September 11, 12 of my 'Afghan Connection' fall events were canceled due to the name and the poor economy - a loss estimated at $60,000."

However, by mid-November, demand had revived enough that prices for Afghan gem material have remained stable.

"The majority of my customers are intelligent people. They have no qualms [buying Afghani gems]. They understand that the war is not against Islam, it's against terrorism," said Mark Herschede of Turmali & Herschede, who deals in tourmaline from Afghanistan as well as gems from neighboring Pakistan and Tajikistan.

Besides, said Herschede, the gem-producing areas are under the control of the Northern Alliance, so when a customer is nervous about contributing to the Afghani economy, "I say that we're supporting the Northern Alliance. The rebels are buying the material, and the rebels are profiting from it."

Beekzad said he had been warning his customers for years about the Taliban's oppression of the Afghan people. In fact, the name of his company, Five Lions, is a translation of "Panjshir," his hometown in Afghanistan which is a Northern Alliance stronghold and the base of Ahmed Shad Massoud, the anti-Taliban leader assassinated on September 9.

The bigger concern for dealers has been the slowdown in production, as well as difficulty in accessing the mines.

"The Afghan men are involved in the fighting and unable to work in the gem mines. There is a good supply of lapis available, but few emeralds, tourmalines, aquamarines, morganites, and kunzites," said Bowersox.

Fortunately, the mines are relatively safe because they are located primarily in northern areas already held by the rebels, Herschede said. "At this time, it's kind of a status quo. That area is pretty secure -- again, it's the rebels -- so my suppliers travel the northern route [away from the bombing]."

Meanwhile, the gem supply remains lower than usual. "You're not going to see a whole bunch of stuff coming in because they're fighting the war [and not mining]. The stuff they're selling is just sitting there [already]. It's going to be leftovers and small handfuls until this thing is resolved," Herschede said.

The near-shutdown in Afghani trade disrupted Robert Linder's venture into the market for natural, unheated rubies. Ironically, Linder, owner of Lindeau Gems in New York, had just begun importing the rubies in early 2001 when the crisis hit and his source, the Jagdalek mine east of Kabul, was shut down.

"There is a major freeze on any trade with Afghanistan," he said. "We were attempting to bring some nice, unheated rubies [to the U.S. market]. Obviously, politics got in the way," said Linder.

Even with the Taliban defeated, it will take time to resolve the permanent leadership of the country, including who controls the northern gem-producing areas, explained Herschede. "I think down the road you'll see less and less material," he said.

But for the short term, the outlook for Afghanistan is better than it has been in years. Under the pact created on December 5, anti-Taliban commander Hamid Karzai and his Cabinet are set to take over power in Afghanistan from the triumphant northern alliance on Dec. 22. Coming to this agreement also secures billions in promised aid to reconstruct the country.

Elated by the defeat of the Taliban, Beekzad calls any losses in business a tradeoff for the liberation of the Afghani people. "Our freedom was much more important. . . . If business slowed down, I don't care too much, as long as we got our freedom."