On November 29 at the Christie’s Hong Kong Magnificent Jewels auction, famous jewelry house Moussaieff will be offering an extremely rare Fancy Vivid Blue diamond that will most likely break a new world record. November is already a very exciting month for jewelry auctions so it stands to reason that the momentum from the mid-November auctions in Geneva will spread to the auction in Hong Kong. The Hong Kong auction is also taking a leaf out of the Geneva auctions’ book and headlining with a blue diamond, the color known to make the most commotion at jewelry auctions. It is imperative to note that very important jewelry buyers are present at Hong Kong auctions, who are equally motivated to buy investment worthy fancy color diamonds there as they would be elsewhere throughout the world. This auction is shaping up to be just such an occasion for those kinds of buyers.

The 4.29 carat Fancy Vivid Blue IF diamond ring by Moussaieff          Image credit: Christie’s

The star of the evening will be a blue diamond. The 4.29 carat Fancy Vivid Blue diamond is shaped in the rarely seen marquise cut, which already makes it extremely desirable. However, best of all, it has been graded as an Internally Flawless diamond. Diamonds with vivid blue color are rare, but blue diamonds with IF clarity are literally one in a billion. These traits are extremely important to investors so once they are offered in a diamond it becomes a very motivating factor that demands attention for the diamond worldwide. However, we still can’t help but analyze the true investment potential of diamonds such as these.

Generally, when we determine the investment value of a diamond, we classify them into color and size categories to make order and sense of the value of said diamonds relative to their own class. That is how we are able to tell if a valuation is correct, under or over. In addition, it provides clarity as to what is a respectable price to pay versus whether a price is due to be the world record for such a type of stone. Our categories are chosen based on comprehensive research and our extensive knowledge of the diamond world, and what kinds of diamonds can sensibly be grouped together. For the diamond in question, we categorized it in the Fancy Vivid Blue category, and in the 3-5 carat size subcategory.

In its 3-5 carat size category, it will definitely be breaking a new world record for both a total sum paid for this size category as well as for price per carat if it sells at its predicted sum. It is valued at $9.7 million to $12.3 million, or $2.26 to $2.87 million per carat. The current record for total price paid in this category is $5.8 million. This was paid for a 3.39 carat Fancy Vivid Blue Diamond, that also has an IF clarity grade. This same 3.39 carat blue diamond also happens to be the current record holder in this category for price per carat paid, which was $1.7 million per carat. This record was established on November 25, 2014, also at a Christie’s auction in Hong Kong.

The 3.39 carat Fancy Vivid Blue IF Moussaieff diamond          Image credit: Christie’s

The other important lot of the evening is a 10.05 carat “Pigeon’s Blood Red” Ruby. This ruby also has the potential to break records that evening. It may earn the highest price per carat ever paid for a ruby. It is currently valued at $8.9 million to $12.7 million, or $885k to $1.263 million per carat. The current per carat record is $1.185 million, which paid for the Sunrise Ruby, a 25.59 carat Ruby.

Why do we think that the record for price per carat may be broken by a ruby less than half the size? Recently, the American Government changed the law and made importing Rubies from Mogok legal. This implies that wealthy Americans desiring unique and rare Mogok Rubies can now acquire them anywhere and legally import them, which opens a new buyer’s market for these rare gems.

The 10.05 carat Ruby          Image credit: Christie’s

The 25.59 carat “Sunrise” Ruby          Image credit: Sotheby’s

We believe the market is still very much hungry for unique fancy color diamonds and are willing to pay top dollar for them, both for collecting and for investment purposes. We will continue to see a long term trend in record price breaking as supply dries up and demand continues to rise, especially due to the recent American Election and Donald Trump’s win, which may give concern to people throughout the world as to the stability of their wealth.