Auction season will already be in full swing by the time Sotheby’s will be auctioning their pink and blue diamonds on April 18, 2018. Just days after their auction in Hong Kong, and the day after Christie’s will offer their Magnificent Jewels in NY, Sotheby’s will be offering their own selection of diamonds and jewelry. For the most part, the jewelry did not meet our rigorous criteria for investment quality. Three of the top 4 items in terms of value are either pink or blue diamonds, which support the long-established notion that pink and blue diamonds are excellent investments.
The top lot of the auction is a 7.01 carat Fancy Intense Pink diamond with SI2 clarity. Its estimated sell value is between $4.2 million to $5.2 million, or $600k to $742k per carat. Due to its low clarity, we will see a lower value auction price, unless the color is so strong that the diamond has the potential to be re-polished to Fancy Vivid Pink. Investors are looking for top quality items, and would rather wait for the right acquisition than buy just anything, even though the size is impressive. This means that color and clarity matter, and it is not only the size that will ultimately influence their decision.
The 7.01 carat Fancy Intense Pink SI2 diamond Image credit: Sotheby’s
The next item has a sweet color to it. It is a 7.37 carat Fancy Intense Orangey Pink diamond with a VS1 clarity. It is valued at $3 million to $5 million, or $407k to $678k per carat. The size is rare, and the color is attractive due to the orangey secondary color. The VS1 clarity helps contribute value, but the valuation is strong due to secondary color. If the secondary color was purplish, the price would sell for higher than the auction house’s valuation. Of course, if there was no secondary color at all, the diamond would sell for significantly more per carat.
The 7.37 carat Fancy Intense Orangey Pink VS1 diamond Image credit: Sotheby’s
Although the following 3.47 carat Fancy Intense Blue diamond is rare in size and color, its I1 clarity makes it less attractive to investors. It is valued at $2 million to $2.5 million, or $576k to $720k per carat. Unless there is a possibility to upgrade it to a Vivid Blue diamond after a re-polish, this value is high. It would end up selling at the lower or middle range of Sotheby’s valuation. If there is an upgrade option we will indeed see a stronger price towards the high value point and the final price may even surpass it.
The 3.47 carat Fancy Intense Blue I1 diamond Image credit: Sotheby’s
Finally, a smaller but not less attractive 1.55 carat Fancy Blue marquise shaped diamond with VS1 clarity will be offered that evening. The blue diamond is valued at $250k to $350k total, or $161k to $225k per carat. This is a good valuation point for this diamond, considering this clarity. The diamond should sell for what it is worth.
The 1.55 carat Fancy Blue VS1 diamond Image credit: Sotheby’s
These are the only items worth reporting about from that auction, and we shall see how prices end up in comparison with Sotheby’s valuation and our comments. Got any questions about diamonds at auction or diamond investments? Ask us in the comments!
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