As we do every second year, we present the Wealth Concentration Index (WCI) for 2019.
This year all real assets in these categories have seen a decrease in their value since the last review back in 2017, except for Gold ( I will consider platinum to be flat). This year is dominated by Sotheby’s as all of the real assets excluding Gold and Platinum were sold by Sotheby’s. Sotheby’s was the last of the four major auction houses to go private late last year.
Gold price has spiked to $53.13 per gram compared to $34.93 back in 2017, a 52% jump in value. It is now back to where it was back in 2011 ($52.95 per gram). The spike during these 2 years are mostly allocated to accumulated inventory by various countries including China. It still took 8 years to recover.
Platinum price has gone unchanged this year to $30.97 per gram compared to $30.22 per gram back in 2017.
This year the Wealth Concentration for Colorless Diamond ends up being at $780,752 per gram compared to $1,031,149 per gram back in 2017, when the 163.41 carat D color Flawless Emerald Cut Diamond by De Grisogono was sold in Geneva. Last month De Grisogono has filed for bankruptcy for various reasons. The leading reason was for money Laundering by Isabel dos Santos (Daughter of Angola’s former president) and her husband Sindika Dokolo (shareholders of De Grisogono via shell companies).
This down trend for Colorless diamonds has been happening since 2011 when it was at the height of $1,328,485 per gram. The 88.22 Carat Oval Shape Diamond was sold on April 2, 2019 at a Sotheby’s auction in Hong Kong for a total price of $13,775,587.
This year, the highest sold artwork was by artist Claude Monet. his masterpiece “Meules” was sold for $100,747,000, twice its estimate, by Sotheby’s New York on May 14, 2019. This translates into a Wealth Concentration value of $221,494 per gram. In 2017, the exceptional sale was of Leonardo da Vinci “Salvator Mundi” which was sold for a record price of $450,000,000, a price we shall not see anytime soon in auction.
This year, the most expensive car sold at auction was the 1994 McLaren F1 LM. It was sold by RM Sotheby’s and fetched $19,805,000. As the car weighs 1,062 kg, it turns into a $18.65 per gram value. The most expensive collective car that was sold at auction in 2017 was the 1956 Aston Martin DBR1, Chassis #DBR1/1. It was sold by RM Sotheby’s on August 19, 2017 for $22,550,000.
Fancy Color Diamonds
The most expensive Fancy Color Diamond sold this year was the 10.64 carat, Fancy Vivid Purplish Pink Diamond, Internally Flawless. It was sold for $19,862,220 by Sotheby’s at its Hong Kong auction on October 7, 2019. This translates into a Wealth Concentration Index level of $9,333,750 per gram. This is well below the $14,472,937 per gram achieved by the 14.54 carat Fancy Vivid Blue Diamond sold in 2017.
It is quite clear that Fancy Color Diamonds will dominate the Wealth Concentration Index forever, unless a new mine is found to have vast supply of pink or blue diamonds, which is highly unlikely, especially now when Rio Tinto is closing its Argyle mine later this year. The Argyle mine produces 90% of global pink diamonds.
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