On September 20, 2016 in London, Bonham’s will be presenting a unique fancy color diamond, a stunning 3.81 carat Fancy Intense Blue. Knowing the market supply these days, it is quite clear that it is not easy to find such a color and size combination. When there is a request made out in the market for such a stone, it is impossible to find more than a handful of choices, and that is after a long and sometimes frustrating search.

Fancy Intense Blue Diamond

The last time we saw a similar sized diamond was on November 11, 2015 in a Geneva auction. It was a 3.17 carat blue diamond with VS2 clarity which sold for $2.52 million total, or just over $795k per carat. In this Bonham’s auction we have a 3.81 carat size but with an I1 clarity. It is currently valued at a price between $1.7 million and $2.4 million, or $446k to $630k per carat. Although it is quite disappointing to see such a low clarity in the diamond, I must also say that in the end, the intensity of the color will contribute the most to the valuation, as well as its weight, while clarity will factor in last.

The 3.81 carat Fancy Intense Blue I1 diamond           Image credit: Bonham’s

The 3.17 carat Fancy Intense Blue diamond sold by Sotheby’s in Geneva in 2015          Image credit: Sotheby’s

Sapphires, a Wonderful Alternative to Blue Diamonds

The second highest valued item on the auction is valued at roughly a third of the value of the 3.81 carat Fancy Intense Blue diamond. It is a pair of fine sapphires that weigh 8.97 carat and 8.93 carats respectively. Both are from Kashmir and there is no indication of heat. They are valued at $520k to $780k in total.

Pair of Kashmir Sapphire earrings          Image credit: Bonham’s

Conclusion

Both September auctions may not give us a clear picture of the true demand for fine and unique pieces of fancy color diamond jewelry. We will have to wait for the Geneva auctions of Sotheby’s and Christie’s in order to really gauge where the market is going. All we know for now is that supply is more constrained than ever and demand might be stagnating. Why? Simply put, current price levels are increasing due to short supply. The demand side is expecting to pay the same prices as previously paid, and so accepting the new higher price level is difficult for buyers to digest. Once it passes this barrier, we will see growth in global demand.

What do you think of the valuation of this blue diamond? Does it reflect current fancy color diamond demand globally? Tell us in the comments!