The Most Expensive Blue Diamonds

For the last seven weeks the world has been waiting anxiously for one of the rarest Fancy Color Diamonds to be offered on the auction block; The Premier Blue – the world’s largest Round Internally Flawless Fancy Vivid Blue Diamond weighing in at 7.59 carats. 

  

Sotheby’s estimated the blue diamond to fetch around $19million, which would have made it the world’s most expensive diamond ever sold per carat.


Consider who the eventual buyer will be. Would you place your money on someone in the trade looking to sell it to one of their clients? A diamond collector who seeks out only the very best and rarest the world has to offer? Or perhaps, would it be a simple but obviously very wealthy individual looking to invest in a promising alternative asset. Still, the question remains, what would an investment executive or a portfolio manager recommend?


Based on this estimated price by Sotheby’s, this would be the first diamond to break the $2.5million per carat mark. Previously record breaking prices for blue diamonds have been set as recently as two years ago:

In October 2011, also in Hong Kong, a 6.01 carat Fancy Vivid Blue commanded the price of $1.687million per carat.

Just one year earlier, in October 2010, a 10.95 carat Fancy Vivid Blue set the highest price paid for a blue diamond at $1.439million per carat, this time in New York.


 
The only Fancy Color Diamond that ever broke the $2million per carat, ceiling was the 5.00 carat Fancy Vivid Pink in December 2009 at $2.166million per carat, which back then broke both price per carat and overall price for a pink diamond ever sold.  

  

 

The results were published yesterday morning on October 8th, and the Fancy Vivid Blue didn’t reach the reserve price of $19million. The highest bid was $16.12million. Although it did not reach the minimum of $19m, it did, in theory, break new grounds for a Fancy Vivid blue. Should it have been sold at the bid of $16.12m, it would have set the record at $2.124m per carat, breaking the current record that was set October 2011.

 

 

 

Leibish & Co. founder, Leibish Polnauer, commented on the results saying: “Everything in life has a price and a limit, even a vivid blue.” So we wonder, how did the seller come to a $19m valuation? This in no way means that the Fancy Vivid Blue has no potential for further appreciation; it simply means that this is what the market bears at this point in time.
 
This will reiterate that Fancy Color Diamonds continue to show consistent higher rate of return as alternative investments. We look forward to the next exciting auction for an important Fancy color diamond which will take place back in Geneva, where a 59.60 carat Fancy Vivid Pink is going back on the block that has been tucked away since 2007. That is estimated to sell for $60million, which, if it goes through, will be the highest price ever paid for a diamond in an auction. Are we starting to see pink or blue? 

 

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