A small but very special Christie’s auction in NY this week saw 2 fantastic pink diamonds sell quite well, both with extreme results. One sold for over $9.5 million, while the other sold for “only” $1.835 million. What do they have in common and why did they differ?
The top lot of the evening was a 5.50 carat Fancy Vivid Pink VVS1 oval shaped diamond, which sold for a whopping $9.573 million, or $1.74 million per carat, and well above its $7.5 Million estimate. It was not a world breaker in any way, but it is still a remarkable amount of money considering that the whole auction brought in $27,534,750 in total sales for the 187 pieces sold!
The second pink diamond sold that night, was actually the third highest in sale price that evening. It was a 5.91 carat Fancy Light Pink VS1 rectangular shaped diamond that was estimated to sell at a pirce between $575k and $675k, but actually sold for $1.835 million or $310k per carat. It came to a price of almost 150% more than its highest estimated value!
Being that these 2 items represent less than 1% of items sold that night, it may seem surprising that they accounted for over 41% of the value of total sales. However, this is entirely understandable when you understand the nature of colored diamonds and their desirability. Why? Because fancy color diamonds continue to hold their position in diamond value and appreciation.
It is also interesting to note that both items sold to diamond dealers. This indicates that either they were purchased on behalf of private individuals, or that the dealers have potential clients for them - meaning that still further value appreciation will take place.
Lastly, we need to address what made the value between these 2 similar size diamonds appear with such a difference in prices? The truth is that although they are both Pink, their colors are a world apart. It is the depth of color that makes all the difference in their uniqueness and value, in this case a difference in the millions of dollars. The more expensive diamond exhibits extremely rare Vivid color and VVS1 clarity, a particular quality that is also quite rare for a fancy color diamond. On the other hand, the pink that sold for only $1.835 million is a Fancy Light Pink, which makes it a less rare pink, although it is still a rare colour in general and hence its high price. A similar quality and size colorless diamond would have sold for less on the market. In fact, it would not have made the news at all, as similar size colorless diamonds sell on the market every day.
As our famous President Mr. Leibish stated: “If you go on 47th street and ask for a 5ct colorless diamond, you will find 50 of them - but if you look for a 5 carat Fancy Vivid Pink diamond, it might take you 2 weeks to find one!”
The opportunities of acquiring such rare diamonds are diminishing as people are more aware of their existence and value. Therefore, it won’t be long before these valuations will further increase in kind!