RAPAPORT... The longevity of a “world record price” for an intense blue diamond can be measured in nanoseconds this year as prices for these beautiful and rare gems continue to soar. A 3.17-carat fancy intense blue diamond set in a ring upped the ante in November at Sotheby’s Geneva sale, achieving a new world record price of $796,178 per carat. The ring, bought by retailer Chatila, was sold for $2,523,887,* just under the high estimate. The exchange rate among world currencies, particularly the weakness of the U.S. dollar against the Swiss franc and the euro, made the goods particularly attractive to buyers outside the United States. On November 17, the day of Sotheby’s sale, the Swiss franc was almost on a par with the dollar. The next day, during Christie’s sale, it achieved parity. U.S. buyers were nearly shut out by the strength of foreign currencies, which made the goods seem like bargains to foreign buyers.
Sotheby’sThe Sotheby auction was 79.1 percent sold by both lot and value, achieving a total of $36,682,714. The 402-lot sale — of which 318 lots were sold — was headlined by a rare and important late-nineteenth century ruby and diamond necklace, property of Mary, Duchess of Roxburghe. Among the 24 cushion-shaped rubies were 21 stones of Burmese origin. David Bennett, Sotheby’s jewelry department chairman for Europe and the Middle East, said “It was once in a lifetime, just to have that necklace in the sale.” The necklace was sold to an Asian private client for $4,299,974, more than four times the high estimate. Achieving an even more impressive multiple of the pre-auction estimate was the companion pair of ruby and diamond earrings, bought by a member of the Asian trade for $1,469,335, more than 12 times the lot’s high estimate. Bennett noted, “Provenance makes a lot of difference. The vast percentage of the jewelry in this sale came from private owners.”
Fancy colored diamonds continue to dominate the auctions, particularly in terms of dollars earned. In the Sotheby’s sale, three such lots brought a total of $8.7 million. In addition to the record-setting 3.17-carat blue, there was a 74.80-carat fancy vivid yellow diamond ring that fetched $3,134,417 and a 2.52-carat fancy vivid green diamond set in a ring that sold for $3,078,914, setting a world record price per carat for a green diamond. Those three, coupled with the top lot, accounted for $13 million, or more than one-third of the auction’s sale total. Bennett noted that the $3 million price paid for the green diamond, “such a small stone,” was remarkable. It appears from the buyers’ response that there are now collectors seeking unusual colors to fill out their array of colored diamonds.
Rounding out the selection of fancy colored diamonds offered by Sotheby’s, a fancy pink diamond weighing 6.63 carats, set in a ring, was sold to the international trade for $1,413,833, above the low estimate. An exceptionally well-conceived sapphire, emerald and diamond flower 1940 brooch by Cartier, in the form of an iris, which was shown on the back cover of the catalog, sold for $656,617, nearly three times the high estimate. The brooch was purchased by a private buyer.
Bennett described the number of bidders and the mood in the auction as “Extraordinary. Even the morning and afternoon sessions were absolutely packed, the most I have ever seen. It bodes well for next year. “With jewelry valued in dollars, it makes it even more attractive for people dealing in other currencies.” The prices must have looked very good to people living on euros. “The enthusiasm was remarkable, a complete contrast to a year ago,” he concluded.
Christie’s Christie’s Geneva sale, held the next day, was a much smaller event, with just 236 lots offered, of which 192 were sold, which totaled 82 percent by lot, 93 percent by value. The sales total for the auction was $32,281,500. Raymond Sancroft-Baker, senior European director of jewelry, attributed the intensity of those attending the auction to Christie’s tightly edited sale. People came in the morning and stayed throughout the day. “The small sale,” he said, “concentrated the mind.” Americans he spoke to said they were nervous about the weak dollar and wanted to get into something tangible.
Although, for the most part, Americans were priced out, Russian-born Aleks Paul of Essex Global Trading, a long-time dealer based in New York, outbid the room and all the phone bidders for the top three lots of the sale. He was a determined buyer, in some cases willing to pay multiples over the estimates for the diamonds he had in his sights. Among his buys was the top lot of the sale, a 62.30-carat, pear-shaped D flawless type IIa diamond, estimated to bring $6 million to $8 million, which Paul took home for $8,051,000. He also bought a double-stone ring by Wolfers, set with a 3.30-carat fancy intense blue diamond and a 3.90-carat E, VS2 white diamond, for $2,675,000. The estimate was $500,000 to $650,000. The stone carried great provenance, as well as quality gemstones. The diamonds were in the previous owner’s family since they were found, circa 1930, in the former Belgian Congo. Rounding out his successful bidding on the top three lots, Paul bought a clasp, circa 1950, set with multiple blue diamonds for $2,563,000, almost four times the high estimate.
European trade buyers moved in on several other lots in the top ten, including a 24.92-carat pear-shaped light blue, VVS2 diamond, mounted in a ring by Cartier, which sold for $1,555,000, well over the high estimate. A grayish yellowish green “chameleon” briolette diamond weighing 19.13 carats, set in a pendant necklace, brought a world record price of $35,000 a carat, with the necklace selling for $987,000; the estimate was $420,000 to $630,000.
Jean-Marc Lunel, head of the sale, said, “The chameleon was an amazing stone, one of the best I have ever seen. It had such light, it was extraordinary.” In talking about the overall success of the sale, Lunel said, “Every category was the finest quality.”
An appreciation for rarity also could be seen in the success of an Art Deco onyx and diamond necklace by Cartier. The elegant neckpiece had been made in 1914 as a corsage brooch. The piece soared above four times the low estimate, selling for $207,000.
Perhaps a reflection of these challenging times, or just a reflection of Swiss decorum, both Geneva auction catalogs avoided the artistic distractions that have been a hallmark of recent books. Their simple presentations allowed the jewels to speak for themselves and that they did — most successfully.
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All prices include buyer’s premium.
Article from the Rapaport Magazine - December 2009. To subscribe click here.