Mama mia, what prices!” exclaimed a dealer observing the auction at Christie’s New York. Two days earlier at Sotheby’s New York, a private collector noted that prices for jewelry and stones seem stronger now than before the global economy went belly-up. When asked for their thoughts on that comment, dealers at the auctions concurred that it did indeed seem to be true.
Diamonds, jewelry and colored stones all sold for solidly strong prices. Diamonds 10-carats-and-over sold extremely well at very strong prices, particularly those of higher qualities. The shortage of these larger diamonds has driven prices higher as privates and dealers scramble to get their hands on big rocks, which appear to be increasingly difficult to find. Most diamonds under 10 carats found homes, some going for surprisingly high prices, while others were more reasonably priced. The only area that seemed spotty was sales of yellow diamonds, which were hit or miss, a pattern that commonly occurs at auctions in New York.
Unique to this round of auctions was the high number of colored-stone lots, an area that often does not fare well at the sales. This time, however, was different and colored gemstones were hot sellers.
Overall, it seems that those with money are seeking hard assets as a store of wealth to counter the low interest rates given by banks, the still-questionable stability of those institutions and the volatility of the stock market. The beautiful and rare will often increase in value over the years.
Sotheby’sA gorgeous spring day was the perfect backdrop for Sotheby’s New York sale, a buying marathon of rare and beautiful jewelry and gems. Bidding was heavy — causing the sale to last for ten hours with barely a break between sessions — especially on the phones, as buyers from around the world vied for the jewels. Buyers from China and throughout Asia were dominant, but there was plenty of action from American buyers as well. More customers floated into the room as the day wore on, with the evening sale drawing in a fair number of dealers.
Sotheby’s two-part sale tallied $39,608,676. The morning session, Always in Style, a single-owner collection of 233 lots accounted for $4,946,338 and sold 87.1 percent by lot and 90.5 percent by dollar value. The second part of the sale, Magnificent Jewels, with afternoon and evening sessions, totaled $34,662,338 for 332 lots and was sold 83.7 percent by lot and 91.7 percent by value. The presale estimate for the two sales combined was $35.3 million. This compares to Sotheby’s April 2009 total of $11,098,638 for 369 lots and $30,582,751 for its 276-lot December 2009 sale.
The top lot of the sale was a 100.17-carat fancy vivid yellow diamond necklace, with 42 Gemological Institute of America (GIA)–certified stones, all very evenly matched. The necklace sold for $3,554,500* to an Asian private, who must have understood how difficult it was, and how many years it must have taken, for the maker to acquire the stones.
“Buyers in Mainland China have come into their own,” says Lisa Hubbard, Sotheby’s chairman of international jewelry for North and South America. “China is an area of growth and they are quick learners. They want the best. The challenge becomes how to find that which is good enough.”
While Sotheby’s stayed true to its winning strategy of selling rare, beautiful and wearable jewelry, this sale stepped out of that safety zone with a number of stones, some of which were risky in terms of their salability. Most noteworthy was a rectangular, modified brilliant cut 7.67-carat fancy intense pinkish orange diamond, internally flawless, type IIa. A fabulous peach color, this was a true connoisseur’s stone. The color was so unusual and pleasing that even though the stone lacked sparkle, that shortcoming was easily forgiven. It also appeared larger than its actual size, was set beautifully and was very wearable. This peach of a gem was the second top-selling lot of the sale, going to an anonymous buyer for $3,106,500, or $405,019 per carat.
“The auction is fascinating, considering the times that we are in,” notes Gary Schuler, Sotheby’s director of jewelry in New York. “This was an interesting auction in terms of pieces. We had great things properly estimated, with great provenance or quality, and they performed well.”
Christie’s
Over at Christie’s, two days later, the 297-lot sale garnered $41,246,325 and was sold 85 percent by lot and 92 percent by dollar value against a presale estimate of $25 million. These numbers weigh against its October 2009 sale, which pulled in $46,513,050 for 385 lots and April 2009, when the sale brought in $19,293,675 for 208 lots. It is notable that all top ten lots at this most recent sale were over $1 million and eight of those ten lots were diamonds.
“We had everything at this sale — royalty, provenance, beauty and rarity,” says Rahul Kadakia, head of jewelry, Christie’s New York. The saleroom — perhaps due to its easy proximity to the jewelry district — was packed with dealers, some of whom had not been seen on the auction circuit for several years.
The top lot of this sale was a 28.28-carat, DIF, heart-shaped diamond pendant suspended from a kite-shape diamond with three micropavé diamond discs above it. The pendant sold for $3,778,500, or $133,000 per carat, against a $3 million estimate, to an Asian private. Besides being a perfectly shaped heart, plump with well-rounded shoulders, the pendant was tastefully elegant and highly wearable.
“Last year at this time, a lot of clients were apprehensive, people were waiting for a turnaround,” observes Kadakia. “At this time in 2009, prices were down about 25 percent. Now they are up about 50 percent, in my opinion, which is not so far from the peak. Exceptional, rare stones will always bring more. ”
The infamous Emperor Maximilian Diamond, a 39.55-carat, cushion cut I, VS1 sold for $1,762,500 to an American private. The stone has an interesting pedigree, having originally been acquired by the Emperor Maximilian and many years later sold to Imelda Marcos by Laurence Graff. Set as a ring, when on, it was so large it went slightly over the knuckle of the index finger. It was a very deep stone with blinding sparkle and a very strong blue fluorescence that made the stone glow and also made it face up better than its I color. The diamond was so over-the-top it almost seemed fake.
The historically important Catherine the Great emerald brooch was another big draw. It sold to a Middle Eastern private for $1,650,500.
“The underlying message is that diamonds are holding value, no matter what the market does,” concludes Kadakia. “Demand is overshooting supply, so prices are climbing back to the peak and it won’t be long before we surpass that.”
* All final totals and prices include buyer’s premium. Presale estimates do not include a buyer’s premium.
Article from the Rapaport Magazine - May 2010. To subscribe click here.