Quietly Simmering

A 32.77-carat fancy vivid yellow VS2 diamond sold for $6,578,500.

Top Lot

Bidders from the U.S. and around the world were buying on the phones and online. The salesroom itself was only partially full, and while there was some live bidding, the audience was comprised mostly of spectators, many of whom were busy tracking prices. The mood of the room may have been influenced by the fact that this October 18 sale fell right in the midst of the fall Jewish holiday season and many in the trade were on vacation. The holiday-induced quiet did not, however, seem to hamper buying.

The top lot of the day was a 32.77-carat fancy vivid yellow VS2 pear-shaped diamond that sold for $6,578,500 — $201,000 per carat — to an anonymous buyer. The stone was beautifully cut, with a pleasing shape and a rich butterscotch color that was evenly distributed throughout the stone, with no bowties or white patches, which sometimes occur in fancy shapes or color diamonds, particularly in larger-size stones. It was a lively stone with scintillation in mostly orange tones that complemented the warmth of the color. There was a lot of presale interest in the diamond as it traveled to various prospective buyers for private viewings, and bidding was competitive at the sale.

“Despite naysayers, the market is here,” commented Rahul Kadakia, head of jewelry for Christie’s Americas. “You just have to have your finger on the pulse of the market and you have to know where the price resistance hits.”

That being said, there was a lot of bidding at the sale, but bidders were taking their time, contemplating their move to the next level as they competed for goods. There was some heavy lifting while buyers weighed the decision as to whether or not to spend the money and prices inched up slowly and cautiously on a number of pieces, sometimes selling for just under the low estimate at hammer price. It was notable at this sale that hammer price for many pieces fell just shy of the low estimate, perhaps a sign that sellers were eager to turn their jewels into dollars in a tightly strapped economy where cash is king.

Diamonds

On the other side of the coin, for some, diamonds are a safe haven store of wealth. Although diamond prices have taken a slight dip recently, Kadakia does not believe that  the downturn has impacted diamond buying as prices have stayed in an acceptable range and the market is known to fluctuate. He does, however, credit the yo-yo stock market with helping diamond sales. “Diamonds are tangible assets even if the prices fluctuate. You have the diamond in your hand. It didn’t disappear into a vortex like money does in the stock market. You will always have the diamond even if the price goes up or down a bit,” observed Kadakia.

Diamonds performed well at this sale, with the gems garnering prices that dealers described as “healthy.” Saul Goldberg, president of New York City–based William Goldberg Diamonds, noted, “It was a healthy day. Important things sold; there were healthy diamond prices.”

The top ten list seemed to prove those words true. The second top lot of the sale was a 25.74-carat oval, D,VVS2, potentially flawless diamond ring from Graff that sold to a dealer for $3,890,500, or $151,000 per carat. A Cartier 20.43-carat  VS1 rectangular-shaped diamond ring took fourth place in the top ten lots, going to an Asian private for $2,098,500, or $103,000 per carat. Also making the top ten list was an 11.11-carat D,VVS1 — potentially flawless — cushion cut diamond ring, which sold to Geneva-based retailer Chatila for $1,342,500, or $121,000 per carat.

In addition to the vivid yellow top lot, colored diamonds made a strong showing. A 3.21-carat fancy vivid blue ring took the number three spot, selling for $2,714,500 — $846,000 per carat — to a U.S. dealer. An 8.20-carat pear-shaped fancy purplish pink diamond ring by Tiffany & Co. took the number five spot when it sold to Chatila for $2,042,500, or $249,000 per carat.

A 3.21-carat fancy vivid blue diamond ring sold for $2,714,500.

While other signed jewelry also sold well, the market seemed much more selective than usual when it came to these pieces and there were passes on several items by David Webb that in past markets would have sold. Also surprisingly left out in the cold were highly collectible, coveted and rare items by Castellani and Giuliano. While these pieces are generally sold to buyers with very discerning tastes, in past years, pieces of this caliber have always found a home. It leaves one to wonder if in this era of cash and commodity versus financial markets, perhaps the true collector pieces may have to wait for their moment to rise again — while diamonds, understood to have tangible value, take center stage.

“There are privates who want to invest in diamonds. They want something they can hold and feel and say ‘I’ve got a million dollars,’” concluded Kadakia.

*All prices include buyer’s premium.

Article from the Rapaport Magazine - November 2011. To subscribe click here.