Just Another Fancy Result
What was so special about October 15th, 2013? For Christie's, it was just another day at the office. But for the diamond industry, it was another great jewelry auction in New York City.
One of the largest auction houses in the world made yet another mark in the world of Fancy Color Diamonds. No, not another record breaking price per carat, and not even the most expensive fancy color diamond ever. The auction house reiterated what we continue to say to all our investors around the globe about fancy color diamonds; these are the most concentrated form of wealth on earth, and we recommend you nibble a bit for your investment portfolio.
The two items that caught my attention in the auction was an 8.77 carat, Fancy Intense Pink, VVS1, type IIa (a rare type) that sold for $6,325,000 purchased by Moussaieff Jewellers. Many other items sold well above the estimates such as the 1.09 carat, Fancy Intense Purplish Pink for $125,000, and the 4.01 carat, Fancy Light Pink for $665,000, but diamonds that sell for above the $5,000,000 mark, make headlines around the world. These are the “crème de la crème”. They set the trend, the market makers and leaders. The other item that got attention was the 3.81 carat, Fancy Vivid Blue, VS1, type IIb that sold for $3,973,000 or $1,042,782 per carat, purchased by an anonymous bidder. To understand the impact of Fancy Color Diamonds in auctions, these two exquisite diamonds accounted for over 22% of the total $46,675,125 sold that evening. But, they only represented 0.68% of items offered at this event.
With current financial turbulence worldwide, and especially in the USA where the national debt has reached $17 trillion, yes $17,000,000,000,000 (http://www.usdebtclock.org/) , investors turn to alternative investments, they are looking for something they can use when paper money should, one day, no longer be worth more than the paper it is actually printed on. They are going thousands of years back in history where real commodities ruled. These are the true value creators.