RAPAPORT... After an exhilarating year of jewelry auctions in 2011,
where multiple new records were set, the question on everyone’s mind at the end
of the past auction season was “Will the market continue to climb or has it
peaked?” With the beginning of the spring auctions in Hong Kong and New York
underway, the answer is that the market is moving along full speed ahead. “There
is a lot of money out there,” comments emerald dealer Joe Gad, principal of
Joseph Gad & Co. in New York.
Both Christie’s and Sotheby’s New York sales followed the
same trajectory. Buyers were scooping up everything in sight for very strong
prices and with very few passes. Multiple bidders for each piece turned sales
into marathons that took hours longer than usually needed based on the amount
of goods on the block. Privates and the trade competed equally, with varied
success, depending upon the determination of the bidders. In addition,
aggressive buyers were jumping into the action with top-dollar opening bids
that stormed well beyond high estimates and didn’t necessarily stop their
competition from continued bidding. Prices paid for diamonds were scintillating.
Dealers concurred that diamond prices were robust, often exceeding list price.
John Kabbani of New York–based Global Diamond Group summed it up succinctly:
“Diamond prices have come back strongly.”
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The Clark Pink was the top lot at Christie’s,
selling for $15,762,500.
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CHRISTIE’S
New York auction week opened at Christie’s where the
Magnificent Jewels sale tallied up an astonishing $70,726,650 against a presale
estimate of $40 million. The 304-lot sale was sold 97 percent by dollar value
and 95 percent by lot, with 290 of the lots finding buyers. This compares to
Christie’s October 2011 335-lot sale, which garnered $46,599,650, and its April
2011 sale, which made $31,792,875 for 281 lots. Of the top ten lots, four sold
for over $1 million, three sold for over $2 million and it just went up from
there. The top lot — The Clark Pink — a 9-carat cushion cut, vivid purplish
pink diamond ring by Dreicer & Co., circa 1910, sold for $15,762,500,* or
$1,751,000 per carat, against an estimate of $6 million to $8 million. The ring
came from the estate of the reclusive New York heiress Huguette M. Clark and
was purchased by dealer Brett Stettner, Stettner Investment Diamonds. The
second top lot of the day was a rectangular cut, 44.09-carat DIF diamond, which
sold for $7,474,500, or $169,500 per carat. Estimated at $6 million to $8 million,
it was named The Perfect Diamond.
The salesroom was packed to capacity with dealers dominating
the room. Bidding was voracious, with four or five people on the phone, online
and in the house vying for each piece. The sale was a mix of big rocks and pretty
jewelry so there was something to suit the tastes of everyone. And much of the
jewelry was priced moderately, although the competitive bidding served to drive
prices high, especially for the pieces that were under $100,000.
“Bidding and buying was very healthy from both privates and
dealers,” notes Rahul Kadakia, head of jewelry for Christie’s Americas. “The
market has been getting stronger, not just in jewelry, but financially. There
is a real shortage of important diamonds and vintage jewels.”
The star of the day was the collection of the Estate of
Huguette M. Clark. The heiress, who lived to be 104, has been making headlines
as much for her reclusive life as for the possessions she left behind. The
jewelry was mostly from well-known design houses and is as chic today as it was
when it was first purchased. It was also in perfect condition, having sat in a
bank vault for a few decades. “Collections like the Estate of Huguette M. Clark
only come about once every hundred years,” notes Kadakia. The 17 lots accounted
for $20.8 million of the sale total. The collection was estimated at $9
million.
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Fancy blue diamond ring, signed Tiffany & Co.,
was the top lot at Sotheby’s, selling for $2,434,500.
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SOTHEBY’S
The next day, uptown at Sotheby’s, the mood continued to be
ebullient. The auction house made its highest-ever total for an April jewelry
sale in New York, bringing in $43,192,151 against a presale estimate of $22
million to $31 million. The 425-lot sale was sold 94.6 percent by dollar value
and 88.2 percent by lot, with 375 lots going to new owners. This compares to
its December 2011 sale, which totaled $30,398,818 for 343 lots, and its April
2011 sale, which realized $39,367,500 for 383 lots.
At Sotheby’s, seven of the top ten lots soared over $1
million. The top lot of the day, which also sold to dealer Stettner, was a
marquise-shaped, 3.54-carat fancy blue diamond ring, signed Tiffany & Co.,
circa 1900. Stettner paid $2,434,500, or $687,712 per carat, to acquire the
ring. It was estimated at $300,000 to $500,000.
Sotheby’s offered a selection of fine period jewelry, much
of which came from nine estates that were consigned to the auction house. A lot
of very beautiful, highly wearable pieces, some with the provenance of
socialites and others with the beauty of past eras, were there for the buyers’
taking. Organized in period vignettes, the sale had everything from Art Nouveau
to Art Moderne, pieces that are rarely found. Once again, bidding was more
competitive than ususal. “People seemed to appreciate the jewelry. Everything
was special in its own way,” notes Lisa Hubbard, Sotheby’s chairman of international
jewelry, North and South America. “Prices were wild. And diamond prices are
sailing past strong wholesale prices.”
According to Hubbard, there were two factors driving the
sale — the auction audience is growing in its intelligence, understanding and
appreciation of jewelry, due in large part to the education provided by
Sotheby’s experts and its catalog notes. There is also a continued move to find
a safe haven for money that is tangible and portable.
While the auction market is certainly not an indicator of
what is going on in the mainstream jewelry market, it is a bellwether for what
is going on in the top tiers of the market. For those with money to spend and a
taste for what is fine and rare, the New York spring jewelry auctions were a
treasure trove.
*All prices include buyer’s premium.
Article from the Rapaport Magazine - May 2012. To subscribe click here.