The Sotheby’s Hong Kong jewelry auctions have shown once again that high-jewelry and gem collectors during the coronavirus pandemic are in search of value — and often find it. The auction house held two sales at Sotheby’s Gallery in October: Its live Magnificent Jewels auction, and a single-lot diamond sale that marked several firsts. Both yielded acceptable results, but there were some disappointments mixed in.
A bargain purchase
The single-lot sale consisted of a 102.39-carat, D-flawless, type IIa diamond — only the eighth D-color, internally flawless or flawless white diamond of more than 100 carats to sell at auction. The event combined both digital and live elements: Online bids began September 15, leading up to the October 5 live sale. This hybrid format was a first for a diamond of that size and quality — as was the choice to present it without a reserve price. These tactics were examples of the creative methods auction houses have been using to try and stir up interest during the pandemic.
A private Japanese collector paid more than $15.6 million for the oval-shaped diamond. While Sotheby’s declared the stone a record-setter for the unusual method of sale, it seems the buyer purchased it at a bargain, as it fell far short of what similar diamonds have fetched at auction in the past.
“It sold for a bit lower than expected,” said Miro Fei-Yeung Ng, founder and president of the Centre for Gemmological Research, Hong Kong. “People, including those on the auction side, targeted it to sell at $20 million. The result is obviously affected by the pandemic.”
Jewelry and gem dealer Ioannis Alexandris agreed that the buyer had gotten good value with this purchase, considering the stone’s rarity and quality. “Everything that was said about the diamond was definitely correct,” said the Gemolithos founder. “Imagine how many stones like this exist? Also, it was a type IIa diamond. For me, it was gorgeous.”
Ng said the hybrid way of selling was effective, but added that it “may favor the ‘expert buyers’ who really know about what they are buying, such as the quality, potential [and] rarity issues (sometimes) without seeing the auction items in person. This is particularly true when the item is a white diamond, as the expert buyers know the details from the lab report.”
Unsold treasures
The Magnificent Jewels live sale on October 7 achieved more than $39.2 million, with a respectable sell-through rate of 77%. However, of the 116 lots on offer, several prominent ones failed to find buyers.
Two lots were withdrawn moments before bidding, without explanation. The first — a cushion-shaped, 118.88-carat, royal blue, unheated Burmese sapphire that the auction house described as “extraordinary” — had been listed without an estimate. The second was a pear-shaped, 4.84-carat, fancy-vivid-blue, internally flawless diamond with an estimate of $7.1 million to $8.4 million.
Alexandris believes the sapphire may actually have been too large for the current fashion climate. “Tell me, who can wear such a sapphire nowadays?” he asked. “It is for a very specific clientele.”
As for the blue diamond, he said it had been listed at a proper price but wasn’t quite top-tier quality. “The blue was vivid, but not in the higher scale,” he explained. “The price was okay because blue vivids are rare.”
Other important lots that failed to sell included two unmounted pear-shaped diamonds weighing 15.83 and 15.25 carats. The estimate for the pair was $2.2 million to $2.5 million. There was also a pair of earrings with pear-shaped diamonds weighing 5.95 and 5.24 carats, suspended from brilliant-cut, fancy-intense-blue diamonds of 1.95 and 1.63 carats, at an estimate of $3.6 million to $4.5 million.
Colorful performances
The top lot at the Magnificent Jewels auction was an imperial green jadeite bead necklace that had no public estimate and fetched more than $8.1 million. Next up was a cut-cornered rectangular modified brilliant-cut, 5.22-carat, fancy-intense-blue diamond that beat estimates at nearly $4.5 million. The number-three lot, a 6.41-carat, unheated Burmese pigeon’s blood ruby on a diamond ring by Hong Kong high-jewelry house Forms, netted $2.8 million, matching its high estimate.
A few colored gems exceeded expectations, including a step-cut, 9.26-carat Colombian emerald that sold for more than $1.2 million, and sapphire earrings of 11.06 and 9.20 carats that brought in just over $1 million.
Signed and period jewels performed well. Among the highlights were a Cartier diamond tiara in platinum that went for $357,670, well above its high estimate; Snowflake earrings and a matching ring by Van Cleef & Arpels, which fetched about three times the set’s high estimate at $61,780; and a Harry Winston kaleidoscope pendant in gold, diamonds and carved malachite, which came out comfortably ahead of its expected price at $32,515.
Image: Sotheby's Article from the Rapaport Magazine - December 2020. To subscribe click here.