In light of the economic downturn, many jewelry auctions have seen less-than-expected results at many sales. However, ultra-luxe items like high-dollar diamonds are still fetching stellar prices, as those with the funds are looking to invest their money in a sure thing.The value of diamonds almost always stays relatively stable, but commercial diamonds will fluctuate slightly with market downturns. It is widely accepted that the value of these jewels has stabilized, but large, rare and historic diamonds always continue to hold their value.
One such example is the Wittelsbach Diamond, a 35.56 carat, grayish-blue rock of VS2 color and clarity. At a recent auction, this stone brought $24.26 million – a new all-time record for auctioned diamonds.
Another auction held the day after the record-breaking sale saw a pair of pear-shaped D flawless diamond earrings, totaling 17.01 and 17.79 carats, sell for $3,553,500 to a private buyer. Private buyers are currently dominating the auction market, as those with cash are seizing the high-dollar beauties as fewer bidders are able to drive up the prices.
The Wittelsbach Diamond was once owned by King Philip IV of Spain, and was expected to only fetch $13.4 million at the sale. It was originally mined in India, and was owned by a private collector since 1964.
The King gave the diamond to his daughter, Infanta Margarita Teresa, in 1667 as part of her marriage dowry when she wed Emperor Leopold I of Austria. It later became part of the Bavarian royal family’s crown jewels in the 18th century, where it was named “Wittelsbach”.
Until the sale of the Wittelsbach, the record for any gemstone sold at auction was $16.5 million paid for the 100.1 carat “Star of the Season”. This pear-shaped colorless diamond was purchased in Geneva in May of 1995.
Shortly prior to the Wittelsbach sale, $18.4 million was paid for the 478-carat, rough-cut “Light of Letseng” diamond, which was mined in September in Lesotho. It is possible this is a record for any rough-cut diamond sale.
The new owner of the Lesotho diamond hopes to refine the stone and cut a D flawless diamond of at least 200 carats from the rough gem. This sale was further proof that the high end of the diamond market is still providing demand for the rare stones.
However, the middle market is weaker when it comes to diamonds. The prices of commercial stones between 0.5 and 1 carat have fallen 10 to 15%, but have since stabilized.
Apparently, buyers with cash have determined that special diamonds are a great way to store their wealth. It is unclear as to whether the high price of Wittelsbach is due to its history or size and color, but the stone hasn’t been re-cut since the 17th century.
High-end auctioneers have recently experienced an overall lowered demand at jewelry auctions, at times only selling half of the available lots in any one sale. Following this trend, many prices have been lowered 20 to 30 percent to encourage quick sales.
Auctioneers have taken notice, however, that the top end of the market has made up for some of the slack experienced in the middle and lower end. This could be good news for those of us who plan on purchasing jewels at the local jewelry store, too!
When looking for your new piece of jewelry, keep your eye out for the latest trends. Fancy cuts, new colors and varying metals are very popular this season. Antique and vintage looks may also be a good choice for your new purchase.
Authentic vintage jewelry may also be had at local sales and auctions for a discount when compared to recent years. Perusing local opportunities may find you a unique piece that is right in line with the latest trends!
In times of economic stress, it’s uncertain how our hard-earned dollars will perform in the viable markets and failing real estate. These recent sales have opened the door to a possible new investment alternative – high-quality diamonds!
Not only do we love wearing them, it’s obvious that they generally hold their value and appreciate over time. If you’re fortunate enough to find a rare beauty for a reasonable price, it may be worth considering.
It is highly unlikely we will find a genuine stone as large as those previously mentioned, but a few qualities will help to choose the right piece as a longstanding investment. History and prominent family ownership is always a plus – we love hearing the stories that accompany our new, fancy jewels!
Another factor to keep in mind is that the quality of the stone is most important. Settings may always be changed and wear thin, but the stone is what will carry through several generations.
The larger the size the better, though you shouldn’t forget about color and clarity. Also look for fancy cuts or colors, and ensure the colored versions are natural and not chemically induced.