Archives: Auction News

News of record prices should no longer come as a surprise; much like with property, auction records at the top of the market are merely a reflection of what’s happening down below.

One of the headliners at Bonhams’ December 5th London auction surprised the diamond community once again this year, setting a new world record price-per-carat of US $760,000 for a ‘Greyish-Blue’ colour diamond. The 2.97-carat step cut stone achieved a total hammer price of US $2.2 million, smashing its highest estimate of US $1 million.

While the hammer price of this lot may seem modest in comparison to the record US $4 million per carat fetched by the Vivid ‘Blue Moon‘ diamond sold last month at Sotheby’s, diamonds with less colour saturation and ‘greyish’ overtones are valued in a different category. As such, the price achieved is quite extraordinary and reflects the robust growing demand for rare coloured diamonds.

However, as all categories of blue diamonds have appreciated significantly in value over the past 10 years (performance graphs below), news of record prices in any one of them should no longer come as a surprise; much like with property, auction records at the top of the market are merely a reflection of what’s happening down below.

More specifically, it’s a reflection of what’s happening across all levels of the coloured diamond market, particularly with blues and pinks – a limited and fading supply of these gems has made them coveted not only for their beauty, but also for their high capital growth investment potential.

“The prices achieved reflect the buoyancy of the market for coloured gemstones of the highest quality. We anticipate 2016 to be very much the year of color. It is exciting to see such wonderful pieces being appreciated by a discerning international clientele,” said Jean Ghika, Director of Jewellery for the U.K. and Europe at Bonhams.

The Blue Moon diamond has become the first stone in history to fetch over US$4 million per carat – a new world record for price per carat for a blue diamond and in fact  price per carat for any diamond ever mined.

The Blue Moon diamond has become the first stone in history to fetch over US$4 million per carat – a new world record for price per carat for a blue diamond and in fact  price per carat for any diamond ever mined.

Today at Sotheby’s Geneva, this investor’s dream sold for a total US$48.26 million (AU$68.3 million). Diamond specialists Cora International bought the rough, uncut Blue Moon last year for a reported US$26 million.

Sotheby’s set the previous record for highest price for a blue diamond at auction when it sold the 9.75-carat Zoe Diamond for US$32.6 million in New York last year in November.

According to Sotheby’s, the diamond was bought by a private Hong Kong-based investor, property tycoon Joseph Lau, and has been renamed the Blue Moon of Josephine after his 7-year old daughter.

The sale comes the day after he spent $US28.5 million at rival auction house Christie’s to buy a rare 16.08-carat pink diamond — the largest of its kind to ever go under the hammer — which he renamed Sweet Josephine.

The magnificent 12.03-carat Internally Flawless, Fancy Vivid Blue diamond has gained a great deal of attention since its discovery at the Cullinan mine in South Africa in January last year. The cushion brilliant-cut diamond is an amazing, intense blue colour with no hint of grey which is normally the case with blue diamonds. In its rough, uncut form it was a wonder, which took 5 months to analyse with 30 different models created, before beginning the painstaking 3 month process of cutting the gem to reveal the incredible Vivid Blue colour we see today.

In terms of rarity, the GIA (Gemological Institute of America) has only ever graded 400 blue diamonds with a fraction of those obtaining the coveted  (fancy) ‘Vivid’ blue classification.

Christie’s held its Important Jewels sale in New York on October 20th, churning revenues worth almost AU$28 million. Online bidding was much evident and active in the sale, with clients participating from locations including Hong Kong, Indonesia, Monaco, the United Kingdom, and all over the United States according to Christie’s.

The top lot of the event was a 75.56 carat Fancy Vivid yellow cushion cut diamond ring which sold for AU$5.1 million, within its estimate of  AU$4.2 – AU$5.6 million. Additional top prices were achieved for a marquise-cut D color diamond of 18.8 carats (AU$2.03 million), a heart-shaped D color diamond of 12.75 carats (AU$13.52 million), and a cushion-cut fancy yellow diamond of 34.12 carats (AU$1.01 million).

The entire auction offered important diamonds, fine colored gemstones, enduring designs of Donald Claflin, Jean Schlumberger and David Webb.

In almost 250 years of auction history, only three pure vivid pink diamonds of over ten carats have appeared for sale.

The world’s largest cushion-shaped Fancy Vivid Pink diamond to be offered at auction will be featured as part of Christie’s Magnificent Jewels sale on November 10 in Geneva. Its estimate is US$23 – $28 million (AU$33 – $40 million).

The diamond is set as a ring, with a double row of pavé-set white diamonds that surround the main stone, and a third row of small pink diamonds underneath. The band is comprised of small circular-cut white diamonds set in platinum.

The diamond will tour Christie’s locations around the world, starting with Hong Kong, and continuing to New York and London prior to the exhibition and sale in Geneva.

In the realm of natural colored diamonds, those of a distinct pink hue are among the most sought-after among gem connoisseurs. While most pink diamonds exhibit a color modifier like purple, orange, brown or grey, this 16.08 carat gem shows no trace of a secondary color, Christie’s said. In addition, it’s classified as a Type IIa diamond, which means it contains little if any nitrogen and accounts for fewer than 2 percent of all diamonds.

In almost 250 years of auction history, only three pure vivid pink diamonds of over ten carats have appeared for sale, the auction house said.

“As large and rare colored diamonds of this caliber become increasingly hard to locate, this 16.08 carat Fancy Vivid pink diamond comes to market at a time when great gems are mirroring prices achieved for masterpieces in the world of fine art,” said Rahul Kadakia, Christie’s International Head of Jewellery.

Source: Forbes Life

Sotheby’s plans to auction a blue diamond that it estimates is currently worth 35 million US dollars francs (AU$48.8 million), which would break the record for a stone of that hue.

Weighing 12.03 carats, the blue diamond termed internally flawless by the GIA with the highest possible colour grade of fancy vivid blue could sell for a record US$55 million when put on the block at a Nov. 11 jewelry auction in Geneva, Sotheby’s said in a statement Thursday.

The gem, called the “Blue Moon,” was polished out of a 29.62-carat rough diamond found by Petra Diamonds Ltd. last year at the Cullinan mine in South Africa. Cora International, a New York-based gemcutter, purchased the diamond and took more than six months to prepare the stone.

Blue diamonds are formed when boron mixes with carbon when the gem is formed. Sotheby’s set the record for highest price for a blue diamond in auction when it sold the 9.75-carat “Zoe Diamond” for US$32.6 million in New York in November 2014.

Dubbed the Blue Moon diamond, the buzzworthy stone will tour Hong Kong, London and New York before hitting the auction block in Geneva on November 11.

“The Blue Moon diamond is a simply sensational stone of perfect colour and purity,” David Bennett, head of Sotheby’s international jewellery division, said in a statement

Blue Moon is the largest cushion-shaped stone graded  as a fancy vivid blue diamond to ever appear at auction. The GIA Monograph notes the singularity of the gem’s spectacular blue, which “could be indescribable to even the most experienced diamantaire or colour theorist; some, however, liken it to the ocean”.

If the higher end of the US$35-$55 million estimate is achieved, the Blue Moon would be a diamond record-setter. But it would need to outperform the Graff Pink sold in November 2010. That 24.78 carats pink diamond brought just over US$46 million.

In November 2014, a 9.75 carat blue diamond fetched US$32.6 million at auction, setting the current record for the category.

Diamond specialists Cora International bought the uncut Blue Moon last year for a reported US$26 million. “The fact that you could buy it rough, plan it and cut it is special,” said Suzette Gomes, CEO of Cora International to Forbes. “This is a billion years old and it’s going to be here long after we’re gone. That’s the beauty of diamonds.”

The estimate for the Blue Moon is subject to change depending on exchange rates, Sotheby’s said.

Source: Bloomberg