Sotheby’s Hong Kong October Auction Breaks two records in 2015

Just a week ago we wrote about Sotheby’s Magnificent Jewels & Jadeite Auction that took place yesterday in Hong Kong. let’s review our comments about the items we wrote about then, and what transpired on the ground.

 

our first item under review was the 5.24 carat Fancy Intense Pink with VS2 clarity. it was valued between $3.3 million and $3.9 million. we did not expect it to break a new record. in fact it did not sell. most likely because it did not reach the reserved price the seller wanted. some of the experts i have spoken to had explained that although it was a Fancy Intense Pink, the color was not a strong Intense, which can explain the lower value. a GIA certificate is very important even for fancy Color Diamonds, but an expert eye is a MUST. the GIA gives a color grade, which by itself is a range. a Fancy color intensity can be a weak one and can be a strong one. it can be a strong one, bordering the next color intensity, in this case a it was a weak enough to be borderline Fancy Pink, which significantly affects the price.

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The 5.24 carat Fancy Intense Pink VS2 diamond

 

Our second item under review was the 41.65 carat Fancy Vivid Yellow with an IF clarity. we had mentioned that it would be interesting to follow this diamond. it was valued at $1.95 million to $2.34 million. it ended up selling for $3,638,646 or $87,362.45 per carat; not a new world record, but it remains that it sold for over 55% above the high estimate. we forsee that prices for such unique diamonds will continue to steadily rise over time, due to rarity.

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The 41.65 carat Fancy Vivid Yellow IF diamond

 

Our third item under review was the 2.11 carat Fancy Intense Blue diamond. we had mentioned that this stone will surprise us, and indeed it did! it broke a record… a sub-record for the 1-3 carat category. the last record held was for a 2.20 carat Fancy Intense Blue diamond sold at auction on November 26, 2013. it sold for $638,647.27 per carat. This current diamond was sold for  $1,899,322 or $900,152.61 per carat; a 40%+ premium since the last record, or 84% above its high estimated value of $1,032,240. This represents about a 20% annual return, and holds with our research showing a 15-20% average annual return. We still recommend a minimum of 5 years holding period.

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The 2.11 carat Fancy Intense Blue VVS1 emerald shaped diamond

 

Our fourth item under review was the 11.10 carat Fancy Vivid Yellow diamond with a VVS2 clarity. we had mentioned that this diamond has good value in it, when it was valued at between $710k to $839k, and ended up selling for $784.5k. It remains to say that any Fancy Vivid Yellow diamond above 10 carats should be considered as a major investment diamond for a portfolio, not to mention such nice clarity. It got $70,675.86 per carat.

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The 11.10 carat Fancy Vivid Yellow VVS2 diamond

 

Our next item reviewed was the 45.88 carat Fancy Yellow with a VS1 clarity. We had mentioned that this diamond has a great potential of an upgrade to an Intense or even a possibility of a Vivid color depth. It was valued at between $361k and $452k in total. it sold for a whopping $1,310,945; a full 190% above its high estimate, indicating that the buyer has taken into consideration  the possibility of an upgrade. If we use a $50k per carat value for a vivid (which is an excellent price for a Vivid), the stone would be reduced to about 26 carat in size. Based on the percentage loss is weight, the buyer will still be in an excellent position after re-polishing the stone.

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The 45.88 carat Fancy Yellow VS1 diamond pendant

 

The following item in our review was the 5.06 carat Fancy Light Pink diamond. it was valued at $310k-$387k and ended up selling for $475k, representing almost a 23% premium above its high estimate. If the diamond is held for over 5 years, most likely the buyer will see its premium price paid well worth it. There is a possibility of re-polishing it into a Fancy Pink, remaining above 5 carats, and so the buyer will see a significant return on his investment. It remains to be reviewed by an expert in Fancy Color Diamantaire.

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The 5.06 carat Fancy Light Pink VS2 diamond

 

We described our following item as a “really great stone” and “a treasure”. this 3.04 carat Fancy Pink with an If clarity was valued at $260-$325k and ended up selling for $877,404! it represents 170% premium above its high end estimated value. Even with this high premium, we recommend holding onto it for quite some time. the return on investment will be greater than the cost.

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The 3.04 carat Fancy Pink IF diamond

 

The second record broken for our review was the 27.68 carat Kashmir Sapphire. Even though it did not break its high estimate of $7.1 million, it still broke the record by selling for $243,702.60 per carat (the world record for a kashmir sapphire was $240,000 per carat). We had predicted that the record would most likely be broken ,due to market sentiments this year for Precious Gems such as Sapphires and Rubies.

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The Jewel of Kashmir, the 27.68 carat Kashmir Sapphire

 

Our next Major Auctions will be in Geneva  On November 10 and 11 which i am quite excited about. I will be there to report live. to get live updates, you can follow me on twitter @InvestFCDiamond

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