What the Crypto are diamond NFTs?
With the recent sale of a 101ct diamond at Sotheby’s being purchased by a Cryptobuyer, we wanted to get our heads around the emerging world of Cryptocurrency and more specifically diamonds being sold as NFTs.
An NFT or non-fungible token, provides digital proof of ownership and thereby receipt of a unique asset. Whilst the token or file, is digital, the assets that the token represents can be both digital and non-digital.
NFTs are built on blockchain, technology that effectively acts as a digital ledger. From mine to consumer, a diamonds form changes from rough to cut, frequently passing through numerous hands and many continents before it gets to the end consumer; therefore, having a digital record of its life story is very helpful. For example, it was recently reported during a meeting of the Kimberley Process, that a number of countries are still using the sale of rough diamonds to fund violence by the ruling authorities, which is still allowed under KP rules, as opposed to the funding of rebel groups, which is not allowed – semantics, but important and not in the spirit of the agreement - therefore, in this instance, surely blockchain technology could offer a better, much more enforceable and transparent solution?
One of the arguments for NFTs is that not only do they embed information within the digital file that acts as property rights, but they also remove the need for ‘middle-men’. However, by removing the middleman, you are also presumably removing pertinent regulations and considerations for what is ‘appropriate’ and ‘transparent’ trading?
“As owners of a fund specialising in fancy-coloured diamonds, our processes are under a huge amount of scrutiny and regulatory processes; and that is fine, that is what we want it to be. Our concern however is that, with all the hype around NFTs there are a number of marketplaces which could, or in some cases already are, selling diamonds and other collectible assets at hugely inflated prices. There appears to be trust in NFTs, but without knowledge of a diamonds worth,” said Mahyar Makhzani, Co-Founder and Joint Managing Director of Amma Group.
As a fund that is required to provide four independent valuations of its diamonds on a quarterly basis, we wanted to understand how a diamond NFTs initial value is established therefore, we decided to look more closely at Opensea, and their NFT platform for diamonds.
Established in 2017, Opensea is a peer-to-peer marketplace for NFTs. In 2020, Opensea launched Icecap, an NFT platform for diamonds. With a stellar leadership team combining extensive knowledge across the diamond and cryptocurrency sectors, this very much looks like a platform that can be trusted, but we wanted to use our in-depth knowledge of diamonds to put their theory to the test.
Icecap has what they call a Value Index, currently in BETA, which guides the seller to a suggested price based on an average wholesale price plus a 1.5 multiplier, to create a theoretical (and presumably realistic) “investor price level.” Icecap then compares the asking price on every diamond listed, to the suggested investor price at that moment in time, to establish which diamond NFTs are selling below or above the proposed value.
This all sounds good and as realistic and transparent as can be, but to be sure we checked the stones listed on Icecap against the prices listed on Rapnet, a B2B Online Diamond Market, present in 100 countries, with over 1 million diamonds listed at a value of $7.1b. As a B2B tool, diamonds are valued at wholesale price on Rapnet. Our findings showed that all stones on Icecap are listed at less than the suggested 1.50 multiple, which is great, until you learn that most stones on Rapnet are currently traded at around 50% below ‘Rap’, therefore making the stones on Icecap, very expensive.
Like with most things there are lots of additional considerations when buying and selling via a ‘new’ platform. Below are a few things we discovered on Icecap:
1. Sellers listing a stone as an NFT, are allowed to include royalty fees, in other words, every time their stone is re-sold, they are allowed to take a percentage of the sale, up to a maximum of 10%.
2. Whilst there are GIA certificates, there are no condition reports, that you would have access to, should you buy via an auction house for example.
3. There is a 1% trading fee for all NFTs on Icecap.
4. There is a fee for taking physical possession of the stone.
5. There is an annual storage fee, if you do not redeem the stone.
6. Should you redeem the stone, there are shipping and insurance considerations.
7. Sales tax will apply, should you take possession of the stone.
“We are certainly not saying that NFTs do not have a place in the diamond world – it’s not our place to say that, but what we are saying is that not everything is always as it may seem and if you are looking to invest in diamonds, there is a lot more than meets the eye. It might be described as akin to buying a beautiful old property, without having the relevant searches done, only to find out later that you overpaid, there’s hole in the roof and you don’t own the freehold” added Philip Baldwin, Co-founder and Joint Managing Director, Amma Group.
In theory, NFTs certainly look like an interesting proposition, but in reality, everybody has to make money and therefore it is not surprising to see that prices are higher than they ordinarily would be.
“There are two things that concern us most: there seems to be trust in a platform and the sellers on that platform, without physically even seeing the diamond; and secondly should this form of trading really take off, diamonds may never see the light of day again, and instead will be kept in a safe and purely traded back and forth, and that would be incredibly sad,” ended Makhzani.
Set up 14 years ago, Amma Group is a fancy coloured diamond fund manager with over 60 years of experience in the diamond and luxury sector. Open only to qualified purchasers and accredited investors, Amma Group believes that something of such high value and with general market opacity should not be traded by people or to people without the knowledge and expertise of fancy coloured diamonds, the necessary buying and selling procedures, transportation, safe keeping, insurance and naturally the financial regulations that must be followed when trading in this asset class.
Sotheby’s 101.38 ct. D colour flawless diamond sells to a cryptobuyer
Diamonds: Navigating An Opaque Market
A diamonds transparency and brilliance are what make it so alluring, yet much of the global diamond industry is hidden behind a veil of mystery.
As an alternative investment fund Amma Group specialises in fancy-coloured diamonds. Working within collectible investments, Amma Groups funds are open to qualified investors.
From mine to retailer, a diamonds journey may take it across numerous continents and through many hands. Mines use the tendering process to sell coloured diamonds, with organisations first being invited, before being requested to make a sealed bid, with the results achieved kept confidential.
Diamond Tenders
Recently announced was Petra Diamonds rough diamond tender of a 39.34 carat, blue type IIb, to be held on 12th July and estimated to be worth $64 million once cut and polished. However, one of the most renowned tender processes was the annual Argyle pink diamond tender. Now depleted the Argyle mine in Australia contributed to over 90% of the world’s pink diamonds.
Closed in 2020, Argyle Pink Diamonds will hold its final tender in September 2021. In their own words, an event widely regarded as the most exclusive diamond sale in the world. Offering between 50 and 70 stones these are Argyle’s largest and most vivid pink, red and violet diamonds, representing less than 0.01 percent of diamonds ever unearthed from the mine. Headlining will be the 3.47ct Eclipse Fancy Intense Pink diamond and notably the largest ever offered at tender.
With the closure of the mine, has come a new venture from an Australian company selling pink diamonds pertaining to be of Argyle origin. Described as the world’s first public tender of secondary market Argyle Pink Diamonds it will be held in July 2021. Open to anyone, the tender will follow the same format of sealed bids, however the catalogue appears to have numerous inconsistencies, namely a lack of Argyle Certificates or in many cases recent GIA certificates. Ordinarily in addition, a tender would be highly regulated with an independent organisation brought into verify the process.
Mahyar Makhzani, Joint Managing Director and Co-Founder of Amma Group commented, “We offer full transparency on the diamond market to our investors; even providing all purchase and sales information. We also never buy a diamond with a GIA certificate older than 6 months. Alas GIA does not provide provenance of a stone, however Argyle Pink Diamonds are always sold with an Argyle Certificate – we would certainly question the validity of any stone claiming to be from Australia without an accompanying certificate of authenticity.”
Diamond Auctions
Buying and selling diamonds at auction offers greater transparency. As a trusted facilitator of the sale, the consumer can feel assured of the diamonds legitimacy and be guided by a price dictated by historical performance. And whilst demand during the sale often results in a price higher than estimated, the bidding process is entirely visible.
Most notable recent sales of coloured diamonds at auction have included the 204 carat Fancy Intense Yellow, named the Dancing Sun diamond which sold for $4.95 million at Christie’s New York in June 2021.
In May 2021, the 15.81ct Sakura diamond, sold for $29.3 million at Christie’s Magnificent Jewels, Hong Kong, setting a world record auction price for a purple-pink diamond.
Cryptocurrency and NFTs
To add a further twist to the story, the key auction houses have recently announced that they will accept cryptocurrency as payment for diamonds. Whilst still transparent, this brings them a step closer to NFTs (non-fungible tokens) which have recently hit the auction artworld by storm. An NFT is created using blockchain technology to facilitate tracking information; tracing the supply chain from diamond mine to manufacturer and retailer, is becoming more commonplace and helps to eliminate conflict diamonds from the market, safeguard livelihoods and minimise the environmental impact of mining operations. But is the world of luxury ready for NFTs to be used as a form of currency? With artwork, over and above the collectability, there is a certain amount of objectivity, whereas with expert knowledge, the accurate valuation of a diamond is possible.
It’s clear that understanding the coloured diamond market is complex and with much of the industry hidden from public view, whether you are a family office, private wealth manager or institutional investor, using a fund manager with diamond industry knowledge is paramount.
“As the fund is so highly regulated, the real opportunity for our investors comes from our ability optimise market value by creating pairs and sets or by re-polishing stones to improve clarity and colour. A great example of this was a 5ct fancy deep pink with a section of deeper colour. After re-polishing, the stone was re-certified as a Fancy Red, the most valuable of coloured diamonds and achieved a gross multiple of 6.6x,” added Philip Baldwin, Joint Managing Director and Co-Founder of Amma Group.
To find out how you can add coloured diamonds as an alternative investment to your wealth portfolio, please click the button below.
The Dancing Sun
The 204.36-carat “Dancing Sun” fancy intense yellow diamond, sold for $4.95 million.
Christies, New York
The Sakura Diamond
An 15.8-carat purple-pink diamond set on a platinum and gold ring, sold for $29.3 million.
Christie’s Hong Kong
Sapphires Shine in Geneva
Geneva was the location for this years May Magnificent Jewels auctions, with sapphires steeling the show and exceeding top estimates.
With a 55.19 carat, blue colour (medium-strong to strong saturation) Kashmir sapphire, the biggest ever to be auctioned, exceeding its top estimate of $2.8 million and achieving an astounding $3.529m at Sotheby's. Head of Magnificent Jewels Sales at Sotheby’s Geneva, Benoit Repellin, said “Kashmir sapphires are among the rarest coloured gemstones known to man. These gems have over the years acquired an almost legendary status.”
Whilst Kashmir sapphires are far rarer than those from Ceylon, both shone at Christie’s and Sotheby’s with all lots exceeding their top estimates.
What Makes Kashmir Sapphires So Rare?
True Kashmir sapphires are extremely rare due to the short period of time they were mined from the original deposit, known as the “Old Mine”. They have a blue colour that is deeply saturated and bright, with a velvety transparency, caused by tiny inclusions scattering light within the stone. Alas few sapphires originating from later mines compare to the quality of the "Old Mine" sapphires.
The best quality sapphires possess a vivid, fully saturated blue colour and the most coveted is known as “royal blue.”
Nowadays, very few truly high-quality Kashmir gemstones are available on the market. It is the uniqueness of their appearance combined with their rarity which make Kashmir sapphires so highly desirable.
The famous ‘Jewel of Kashmir’, a 27.68 carat sapphire was sold at auction in 2015 at Sotheby’s in Hong Kong for a record per carat price of US$242,145.
Sapphire and Diamond Brooch
Formerly in the Collection of Maureen Constance Guinness, Marchioness of Dufferin and Ava, a 55.19 carats and 25.97 carats Kashmir Sapphire and Diamond Brooch.
Sotheby’s
Non-Fungible Token Fancy Coloured Diamonds - Really?
After more than 12 months of relative inactivity, fancy coloured diamond prices are on the up according to data from the Fancy Colored Diamond Research Foundation (FCDRF), which shows changes in the wholesale price of all yellow, pink and blue fancy-coloured diamonds, irrespective of specific classifications, such as clarity, cut, tone and colour saturation.
This comes at the same time as the launch of the first public global tender of secondary market Australian Pink Diamonds by yourdiamonds.com, as well as the launch of Icecaps Investment Grade Diamond Non-Fungible Tokens, which are blockchain-based tokens that document ownership of assets.
Coloured diamonds are incredibly rare; approximately 1 in every 10,000 diamonds is considered fancy coloured, as stated by the Gemological Institute of America, the worlds most trusted name in diamond grading and gem identification. However, this poses a problem for the new diamond platform-based launches, as according to WWW International Diamond Consultants, at least 5,000 carats of similar attributes need to be traded to have a reliable gauge for a stones value, which given their scarcity, is impossible for fancy coloured diamonds.
Amma Group, fancy coloured diamond fund managers with over 60 years of experience in the diamond and luxury sector, set up its first fund 13 years ago. Open only to qualified purchasers and accredited investors, Amma Group believes that something of such high value and with general market opacity should not be traded by people or to people without the knowledge and expertise of fancy coloured diamonds, the necessary buying and selling procedures, transportation, safe keeping, insurance and naturally the financial regulations that must be followed when trading in this asset class.
Coloured diamonds range from brown, which is mostly used for industrial purposes, to yellow, through to orange, green, pink, blue, purple and the rarest of all, red. Of these colours, each is further classified by its intensity and depth of colour, the best of which is fancy intense to fancy vivid.
Unlike white, also known as colourless diamonds, whose increased value is attributed to the lack of colour, coloured diamonds attribute their value to the presence of colour, with fancy intense to fancy vivid being the most valuable.
“It takes in-depth knowledge and skill to know what you are dealing with.” said Mahyar Makhzani, Joint Founder and Managing Director of Amma Group. “For example, take a 1 carat Light Pink and a 1 carat Fancy Vivid Pink, assuming all other characteristics are the same, there could be a price differentiation of 100 times.”
Philip Baldwin, Joint Founder and Managing Director of Amma Group added “We only ever buy and sell stones with certification that is no more than 6 months old. Even as experts, seeing a certificate is just part of the story. We also ensure a realistic net asset value ‘NAV’ by gaining valuations from three independent coloured diamond experts on a quarterly basis.”
Fancy coloured diamonds are a natural and therefore exhaustible resource. With scarcity and rarity constantly increasing, prices at auction have shown a steady rise over the last decade and more. This combined with over 60 years of knowledge and skill along with some interesting buying and selling strategies have resulted in Amma Group receiving some notable recommendations with one client saying, “The Coloured Diamond Fund produced impressive returns with the additional attraction that they were not correlated to those of traditional mainstream asset classes.”
Makhzani went on to say “We bought one stone, with a per carat price of $500,000. We thought that if we re-cut and polished it, in other words, reduced its size, we might be able to achieve a better, more intense colour. We did just that; it was re-certified and sold for a per carat price of over $3.5m.”
With the depletion and subsequent closure of the Argyle mine in Australia, which was the source of 90% of the world’s pink diamonds, prices for one of the rarest of coloured diamonds are expected to increase, but as Baldwin ends, “With such opacity in the coloured diamond market, you really have to be knowledgeable about what you are buying and from whom.”
Pink Diamond Colour Scale by Scarcity & Value
The graph shows how scarcity and value are impacted across the colour scale spectrum.
The Argyle Prima© Fancy Red Pear Shaped Diamond
Previously under management by Amma Group
Resurgence in Sales of Coloured Diamonds
After a period of uncertainty as a result of the global pandemic, Christie’s Magnificent Jewels auction, held on the 13th April in New York, was the setting for what is hopefully a resurgence in the sale of fancy coloured diamonds.
Christies reported global participation with bidders hailing from 40 countries across 5 continents. Leading the auction was a trio of fancy coloured diamonds, described as the “Perfect Palette.” The pink, orange and blue diamond rings were sold separately but altogether achieved a total of $8.4 million, surpassing the top estimate.
The 2.17 carat Fancy Vivid Purplish Pink, cut cornered square, had a top estimate for $2.5 million and sold for an incredible $3,510,000. The arguably rarer, 2.13 carat Fancy Vivid Blue cut-cornered rectangular diamond, sold just shy of its top estimate at $2,670,000 and the 2.34 carat Fancy Vivid Orange cut-cornered rectangular diamond, sold for $2,190,000.
“Coloured diamonds are exceptionally rare and with the relatively recent closure of the Argyle Mine, which was the source of approximately 90% of the worlds pink diamonds, it is no surprise that the purplish pink sold above the price of the blue diamond, despite being less rare,” said Philip Baldwin, Managing Director and Co-Founder of Amma Group.
“Fancy Coloured Diamonds are unlike almost any other luxury investment, purely because they are a finite commodity. Much like a Renoir or a Picasso, their scarcity and rarity is driven by the inability to produce anymore. This differs greatly from other man-made luxury items whose scarcity is as result of a business decision”, said Mahyar Makhzani, Managing Director and Co-Founder of Amma Group.
Achieving uncorrelated returns in a unique asset class, Amma Group is a fancy coloured diamond and precious stone fund manager.
Christies
14.83 Carat Purple-pink Diamond Sells for $26.6 Million
Hot off the back of the closure of the famous Argyle mine, world renowned producer of around 90% of all pink diamonds, comes the auction of an ultra rare, vivid purple-pink diamond mined in Russia and selling yesterday at Sotheby’s Geneva for an incredible $26,612,763.
This stunning stone was unearthed by diamond producer Alrosa based in the Sakha region of Russia, in July 2017. It took over a year of true artistry and unparalleled passion to expose its inner beauty and create the 14.83 carat oval diamond, named ‘The Spirit of the Rose’.
It is the largest of its kind (colour, clarity and cut) to be offered at auction. "The occurrence of pink diamonds in nature is extremely rare in any size. Only one percent of all pink diamonds are larger than 10-carats," said Gary Schuler, worldwide chairman of Sotheby's jewellery division.
Head of fine jewellery auctions at Sotheby's Geneva, Benoit Repellin, commented that the oval-shaped diamond was "completely pure." And according to Repellin, five out of the 10 most valuable diamonds ever sold at auction were pink.
Record-breaking gems
Highest price record: The world auction record for a diamond or any gemstone or jewel was the "CTF Pink Star", a 59.60 carat oval pink diamond that sold for $71.2 million in Hong Kong in 2017, after just 5 minutes of bidding.
Highest price per carat: In November 2013, Christies sold the largest vivid orange diamond in the world for $35m for a record-breaking $2.4m per carat.
Most expensive precious stone: In May 2015, a 25.59 carat “pigeon blood” Burmese ruby named the Sunrise Ruby, sold for a staggering $30m, making it the most expensive precious stone other than a diamond.
Rare Fancy Purplish-Red Diamond Sells Above Estimate
A 1.05 carat fancy purplish-red cut-cornered rectangular shaped diamond sold at Christies Geneva yesterday, the 10th November for $2.74 million, almost a million above its high estimate of $1.85 million. The stone with VS2 clarity, was mounted on a simple platinum and gold Graff ring and was flanked by 2 heart shaped white diamonds.
Also selling at the auction was a 3.96 carat fancy deep blue pear-shaped diamond ring which went within estimate, for $1.73 million; and a 16.45 carat Kashmir sapphire which sold for $789,570, almost one hundred thousand dollars above its top estimate.
The on-going results of auctions that have taken place during the pandemic, continue to prove that the rarest of rare are a commodity which holds its own, during economic downturn.
The Argyle Mine Ceases Operations Today
After 37 years and more than 865 million carats of rough diamonds, a very small proportion of which have been pink, the Argyle mine will finally close today.
The Argyle mine has been the source of 90 per cent of the world's pink diamonds over the last thirty years and in that time, pink diamonds have gone up in value by more than 500 per cent. Rio Tinto's managing director for operations, copper and diamonds, Sinead Kaufman said "Demand for Argyle pink diamonds has continued unabated. Rarity, uniqueness and a finite supply has driven the strong value appreciation we have seen, and continue to see."
Described by Vivienne Becker, award winning jewellery writer and historian, as having "a colour and quality that had never been seen before." Much like white diamonds, coloured diamonds are categorised according to their colour which range from very light through to vivid and intense - the more vibrant and intense the colour, the rarer and therefore, the more valuable. What has made Argyle Pink Diamonds so extraordinary is the sheer number of stones with the richness and vibrancy of colour, sitting in the far end of the colour spectrum. "It was completely unprecedented and there was massive excitement in the industry," said Becker.
Mahyar Makhzani, Managing Director and Co-founder of Amma Group commented that we expect prices to climb further after the mines closure. "Pink diamonds have out-performed virtually all traditional asset classes over the past 10 to 15 years," he said. "They've done better than the stock market, property, precious metals and really do present a very stable asset class.”
"The market has known for a long time now that the mine is closing so I don't think we're going to see any shock movement but certainly in a year or two the supply squeeze will start to be felt quite significantly and we’ll expect to see pink diamonds really increase in value. It would be true to say that if you have an Argyle Pink Diamond, then you should hold onto it, but if you are looking to invest, do it now rather than wait a couple of years," said Makhzani.
The land that these diamonds originate from is well known to be sacred land and as Vivienne Becker mentioned, "A huge part of the appeal of these diamonds is the provenance, the purity and integrity of the provenance."
"We've lived through the life of this mine, right from the start, and in these days, when people are really concerned with the origins of every product they buy, particularly luxuries, then this has been a very important element," she commented.
The term conflict diamonds is well known and for a long time now, mines have signed up to the Kimberley process, ensuring diamonds are conflict free. However less well known are the environmental, social and governance (ESG) concerns surrounding the industry. In a desire to ensure traceability of its diamonds, Amma Group has recently partnered with The Loudhailer to support and connect digital futureshapers whose innovations might address these concerns.
“With an intention to work with partners to improve social, economic and environmental factors within the diamond and precious stone industry, Amma Group through is partnership with The Loudhailer is developing a fund structure to further support winners of the African based Global Startup Awards, also providing the business tools needed to succeed. Inevitably these digital disruptors will pave the way in addressing climate change, sustainability metrics and energy”, said Philip Baldwin, Managing Director and Co-Founder of Amma Group.
Amma Group has been one of a handful of organisations around the world that are invited to the yearly Argyle Pink Diamonds Tender - the chance to bid on stones from the Argyle mine, 2020 being its penultimate Tender. The process follows the format of a blind auction; organisations have a limited time frame in which to present their best and final offer on a stone in the hope that they come out on top. Amma Group has been fortunate enough to have purchased a number of stones from the Tender, over the last decade.
The Argyle Mine will close today, Tuesday 3rd November and Rio Tinto will begin a five-year process to decommission it before returning the land to its Traditional Owners.
In celebration of the the Argyle Mine and its treasure trove of pink diamonds, below is a wonderful podcast from The Sydney Morning Herald, Good Weekend Talks.
Thank you Argyle Pink Diamonds; ours is the richer for having known you!
Cullinan Mine Unearths Five Significant Blue Diamonds
The Cullinan mine is known as the world’s most important source of blue diamonds. It is therefore very exciting to hear that Petra Diamonds has announced the discovery of five blue diamonds of high quality at its Cullinan mine in South Africa.
These rough stones are significant in size, ranging from 9.61 carats up to 25.75 carats and are assessed as being individual stones opposed to being part of one larger stone.
The last most significant blue diamond weighing 20.08 carats, was unearthed from Cullinan a year ago. “It is therefore even more unusual to recover five high quality stones around the same time, all in the space of one week’s production”, commented the mine.
Given the current pandemic, Petra Diamonds is maintaining a flexible approach to the sale of these incredible stones. And with their last blue diamond (20.08ct) selling for $14.9m USD, speculation and anticipation will be high.
Cullinan, was the source of the world’s largest gem diamond ever recovered: the Cullinan diamond weighing an astonishing 3,106 carats in its rough form, was cut to create the Great Star of Africa and the Second Star of Africa, the two largest cut diamonds in the British Crown Jewels.
Argyle Pink Diamonds releases one of it’s final collection Tenders.
Named One Lifetime, One Encounter, the Argyle Pink Diamonds Tender is expected to be one of its final collections before the mine’s eventual closure.
Comprising 62 loose diamonds, weighing 57.23 carats, this year’s Tender also includes additional Petite Suites - 12 sets of small pink, red, blue and violet diamonds, collected over the past five years and weighing 13.90 carats.
Within the loose stones, there are six hero diamonds including the Argyle Eternity – weighing 2.24 carats, it is the largest fancy vivid round brilliant diamond ever offered at the Tender, and the sixth largest Fancy Vivid diamond of any shape.
Arnaud Soirat, chief executive Rio Tinto Copper & Diamonds commented that “Rio Tinto’s Argyle Mine is the first and only ongoing source of rare pink, red and violet diamonds in the world. We have seen, and continue to see, strong demand for these highly coveted diamonds, which together with extremely limited global supply, supports the significant value appreciation for Argyle pink diamonds”
Amma Asset Management currently holds one Argyle diamond, a 1.14 carat Fancy Red, Rectangular Brilliant shaped diamond.
The Argyle Pink Diamonds Tender 2020 Heroes
Courtesy Argyle Pink Diamonds, Rio Tinto
Internally Flawless 7.16 ct Fancy Intense Blue Diamond Sells For Over $3.8m
Christie’s New York, Magnificent Jewels auction on July 29, saw two impressive fancy coloured diamonds centre stage including an internally flawless 7.16 carat fancy intense blue pear modified brilliant-cut diamond ring, which sold for $3,855,000, and a 7.65 carat VS2 fancy light purplish pink pear modified brilliant-cut diamond ring, which after some spirited bidding sold for $819,000, well above its high estimate.
Several other gemstones achieved notable prices, including a sapphire ring of 53.48 carats, which sold for $615,000 and a sapphire and diamond necklace that sold for $325,000.
Courtesy Christies
Keeping up with the trade show developments
At the moment, it seems that not a week passes by without some news related to one watch and jewellery show or another. Following the recent departure of a number of key brands from the previously named Baselworld (now known as HourUniverse), many, including Bulgari and Girard-Perregaux, have decided to relocate to Geneva, holding their shows alongside that of the formerly named Salon International de la Haute Horlogerie (SIHH), now known as Watches & Wonders.
Dominated by the Richemont brands, the Watches & Wonders show as with many others was cancelled this year, but organisers have announced that they will be holding their first physical Shanghai based show in September 2020. Combined with a digital platform showcasing the new launches, those not able to travel will be able to see the best that the industry can offer via the internet.
Meanwhile, in a statement Fabienne Lupo president and chief executive officer of Fondation de la Haute Horlogerie, organisers of the previously named SIHH, has announced her departure after 15 years with the Swiss watch industry group. She said “I leave the Foundation knowing it is sounder than ever before, thanks to the unwavering support of its founders and partner brands.”
Credit Watches & Wonders
Baselworld asks investors to accept rescue package
Lupa Systems, an investment company run by James Murdoch, younger son of Rupert Murdoch, has put forward a rescue package to MCH Group AG, owners of Baselworld and Art Basel to save the company, following the impacts of Coronavirus and the exit of Rolex, Bulgari and the Swatch Group from the show.
According to Bloomberg, with the abandonment of such major players from the show, combined with the cancellation of both Baselworld and Art Basel this year, the MCH Group is anticipating a fall in sales of up to $180 million.
The deal with Lupa Systems is thought to be of around CHF 100 million for 30-44% of the group and at an Extraordinary General Meeting to be held on 3 August 2020, the election of James R. Murdoch (Founder and CEO Lupa Systems), Jeff Palker (Managing Partner and General Counsel Lupa Systems) and Eleni Lionaki (Partner Lupa Systems) to the Board of Directors will be proposed.
In addition to the capital increase, the Canton of Basel-Land and the Basler Kantonalbank have offered to extend the repayment period of their CHF 35 million and CHF 40 million loans by five years.
In a bid for financial and structural strengthening to overcome the corona crisis and implement the long-term strategy MCH Group has said that “If this overall package were to fail, extremely little time would be left for developing and implementing alternative restructuring solutions before it was too late.”
Baselworld, MCH Group
Fancy Vivid Blue Leads At Christies Geneva Auction
Today, top lot at Christie’s Geneva Magnificent Jewels auction was an internally flawless 5.34-carat fancy vivid blue modified brilliant-cut diamond and white diamond ring. Estimated at between $8.5 and 12.8m, the ring sold for $9,334,394.
Also of note were three Kashmir Sapphires and four Burmese Rubies which all either met the estimate given or in some cases more than doubled the top estimate given. This is very promising for Amma Asset Management, which intends to launch its fifth fund in 2020 with the inclusion of Royal Blue colour Kashmir Sapphires and Pigeon Blood colour Burmese Rubies to the already impressive assortment of fancy coloured diamonds.
Dramatic changes for Baselworld
In the heart of Switzerland lies Basel, home of Baselworld, the global watchmaking, jewellery, gemstone and related industries trade show. For over a century, Baseleworld has been a must-attend show for major brands, discerning buyers and influential press from around the world. An opportunity for this community to unite and discover first-hand, new trends and innovations launched by top brands.
Run over 6 days with 82,000 visitors and over 3,500 journalists, Baselworld has suffered a blow over the last 18 months with major brands including Bulgari, The Swatch Group and most recently Rolex, confirming that they will no longer participate in the show.
With over 60 gem specialists still participating, the show will remain an important opportunity for Amma Group to view and purchase stones. However, like so many organisations going forward, Baselworld will be judged on its agility and ability to innovate in order to find a ‘new normal.’
