Boom time for bling.


Boom time for bling.

[su_highlight background="#99788D" color="#FFFFFF"] GEMS[/su_highlight] The summer auction season has come to an end: not before making history.  The world record sale of the Oppenheimer Blue, $57.5 million, shows that fine jewellery still has universal appeal and hold more than just monetary value. 
 

The 14.62-carat rectangular-shaped fancy vivid blue diamond sold for more than $57.5 million (including commission and fees) at Christie’s Geneva Magnificent Jewels sale in May. The price for the diamond smashed the previous world record, set just six months earlier for the 12.03-carat “Blue Moon of Josephine” that sold for $48.4 million.

The Oppenheimer Blue alone would have been enough to ensure a successful spring auction season but it was one of several fancy coloured diamonds that commanded record prices during sales in Geneva, Hong Kong and New York. Blues and pinks continue to dominate but so did other rare fancy coloured diamonds (see list). the-auction-market_interno

The successful sales easily overshadowed the one major disappointment for the season: the failure of the 9.54-carat Shirley Temple Blue diamond to sell at Sotheby’s New York Magnificent Jewels sale. The estimate for the fancy deep blue, VVS2 clarity diamond set in a ring was $25 – $35 million. Bidding stalled at $22 million.

For those who follow jewellery auction markets, it seemed as if the surge in demand for fancy coloured diamonds began about 10 years ago. One of the reasons cited by many is that in addition to their rarity and beauty, statement fancy coloured diamonds were one of the very few attractive investment options for the world’s wealthiest individuals during the height of the global recession.

François Curiel, chairman of Asia-Pacific, a jewellery specialist who has been with the auction house for nearly 50 years, saw the trend towards fancy coloured diamonds beginning nearly 30 years ago, when a diamond known as the “Hancock Red” came up for auction.

From left, the ‘Star of Kashmir' sapphire ring, a diamond ring by Graff and a ring set with a cushion-shaped 23.28 carats Colombian emerald of exceptional size and quality  From left, the ‘Star of Kashmir' sapphire ring, a diamond ring by Graff and a ring set with a cushion-shaped 23.28 carats Colombian emerald of exceptional size and quality

“It all started on 28 April, 1987, at Christie’s New York when we offered a fancy purplish red circular cut diamond of 0.95 carats, estimated US$150,000. I liked it so much, because I had never seen such a really red diamond (not brownish red or reddish brown), I built a special showcase for it during the preview,” he said. “The rest is history as it went for US$880,000 (US$925.000 per carat), a world record at the time and probably the most expensive material on earth. This auction is what started the ball rolling in my opinion.”

A decade later Curiel said the increase in demand for fancy coloured diamonds continued. In 1995, in Geneva, a 7.37-carat fancy intense purplish pink diamond sold for US$6 million (US$815,000 per carat) and in 2001 a 1.92-carat fancy red radiant cut diamond sold in NY for US$1.65 million (US$860,000 per carat). “Fast forward to 2016 and coloured diamonds bring US$4 million per carat,” Curiel said.

One of the questions being raised is whether the astronomical prices for the rarest and most precious fancy coloured diamonds will cause demand to increase for similar diamonds that lack the rarity and provenance of those statement gems. Coloured diamonds the-auction-market-interno2dealers are certainly making this argument. One of those dealers is Tobias Kormind, managing director of 77Diamonds.com, a London-based jeweller specialising in engagement rings and diamond jewellery, who says the demand for coloured diamonds is outstripping supply.

“Diamond dealers who sell fancy coloured diamonds are now complaining they cannot replace their stock,” Kormind said. “Meanwhile, the quality of pink diamonds coming from the Argyle mine, the world’s top source of pink diamonds, is dropping annually adding to the sense of pressure.”

Curiel, while being a bit more sceptical, acknowledges that the demand for the rarest fancy coloured diamonds could trickle down to diamonds with more common colours and smaller sizes.

“There are so few truly blue blue, red red, pink pink, green green and orange orange diamonds that I do not see yellow or brown gems catching up with the US$2 million per carat-plus reached by the other primary coloured diamonds today,” he said. “However, it certainly draws the attention to coloured diamonds and yellow gems benefit from this.” As the fall auction season begins we will see if this demand for fancy coloured diamonds continues •

Text Anthony DeMarco

 

The Top Five Coloured Diamond Sales for the spring 2016 Auction Season

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The Oppenheimer Blue. 14.62-carat  fancy vivid blue.  World record for any gem or jewel sold at auction.  May 18, 2016 Christie’s Geneva Estimate US$38 - $45M Sold for  US$57.5M Price per carat US$3.93M The Oppenheimer Blue.
14.62-carat
fancy vivid blue.
World record for any gem or jewel sold at auction.
May 18, 2016
Christie’s Geneva
Estimate
US$38 - $45M
Sold for
US$57.5M
Price per carat
US$3.93M

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De Beers Millennium Jewel 4 10.10-carat  fancy vivid blue. A record for a jewel sold at auction in Asia. April 5, 2016 Sotheby’s Hong Kong Estimate $30 - $35M Sold for  US$32M  Price per carat US$3.16M De Beers Millennium Jewel 4
10.10-carat
fancy vivid blue.
A record for a jewel sold at auction in Asia.
April 5, 2016
Sotheby’s Hong Kong
Estimate
$30 - $35M
Sold for
US$32M
Price per carat
US$3.16M

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The Unique Pink 15.38-carat  fancy vivid pink. The largest fancy vivid pink diamond ever to come to auction. May 17, 2016 Sotheby’s Geneva Estimate US$28 - $38M Sold for $31.5M Price per carat US$2M The Unique Pink
15.38-carat
fancy vivid pink.
The largest fancy vivid pink diamond ever to come to auction.
May 17, 2016
Sotheby’s Geneva
Estimate
US$28 - $38M
Sold for
$31.5M
Price per carat
US$2M

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Cullinan Dream 14.62-carat  fancy vivid blue. The largest blue diamond ever sold at auction. June 9, 2016 Christie’s New York Estimate US$23 – $29M Sold for US$25.3M Price per carat US$1.7M Cullinan Dream
14.62-carat
fancy vivid blue.
The largest blue diamond ever sold at auction.
June 9, 2016
Christie’s New York
Estimate
US$23 – $29M
Sold for
US$25.3M
Price per carat
US$1.7M

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Aurora Green 5.03-carat  fancy vivid green. World record for total price and price per carat for a fancy green diamond. May 30, 2016 Christie’s Hong Kong Estimate US$16 - $20M Sold for  $16.8M Price per carat US$3.3M Aurora Green
5.03-carat
fancy vivid green.
World record for total price and price per carat for a fancy green diamond.
May 30, 2016
Christie’s Hong Kong
Estimate
US$16 - $20M
Sold for
$16.8M
Price per carat
US$3.3M

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