The fall 2010 auction season was significant for its tsunami of worldwide high total sales, propelled in large part by power pink diamonds that garnered jaw-dropping prices and boosted the bottom line to record-breaking peaks. It came as no surprise that the momentum followed at Sotheby’s New York sale of Magnificent Jewels held December 9, 2010, when the auction house realized a total of $53,228,590, a new record for a Sotheby’s jewelry sale in New York. The 452 lots, which sold 81.3 percent by lot and 84.1 percent by value, included a single-owner collection “Jewels from the Estate of William B. Dietrich,” which was sold 100 percent by both value and lot. This compares to Sotheby’s April 2010 total of $39,608,676 for 565 lots and $30,582,751 for its 276-lot December 2009 sale.
Even though there was no megamillion dollar piece in this sale, all of the top ten lots sold for over $1 million. The top lot was a diamond pendant by Tiffany & Co., showcasing a 27.19-carat DIF diamond. It sold for $3,666,500* to a member of the international trade. The second top lot of the day was a 54.20-carat fancy vivid yellow, VS1 diamond ring that was the color of sunshine. It sold for $2,322,500 to the international trade.
No sale this season would be complete without a power pink. The third highest selling lot of this sale was a fancy light pink, internally flawless, type IIa, Golconda diamond, which went for $2,266,500 to an anonymous buyer. This was a true connoisseur stone that glowed with the special aura that only comes from a Golconda diamond and it could certainly hold its own with any of the other high-ranking pinks of the season.
One of the surprises of this sale came when a diamond necklace sold online for $1,082,500. According to Lisa Hubbard, Sotheby’s chairman, international jewelry, North and South America, most of the online sales are for smaller items.
The sale was filled with numerous diamond solitaires in the 5-to-10-plus-carat range that attracted much interest from both the trade and consumers. The stones were sourced from privates and were in at conservative prices so, despite very competitive bidding for many of these stones, the end prices were not unreasonable.
“If you take the sale price and compare it to the Rap Sheet, the stones were discounted so heavily that the final prices make sense according to Rap,” commented Hubbard. “White diamond prices are not inflated. You saw a lot of activity because the prices were conservative.”
According to Hubbard, the trade comes to the auctions to source diamonds and, in the current economic climate, privates are coming to auctions looking for diamonds to use as a hard asset. “White diamonds are an international language, with a standardized price, and everyone will pay it,” remarked Hubbard. “They are wealth retention, or convert to cash wherever you sell them and they will sell quickly if they are the right quality.”
Searching for Unique
Traditionally, antique and period jewelry is a big seller at auction and it is one of the main draws as it allows people an opportunity to pick up a rare one-of-a-kind piece of jewelry. This sale was no exception. It was filled with signed pieces from Cartier, Van Cleef & Arpels, Lalique and other coveted names. An emerald, opal, diamond and enamel ring by
Fouquet, estimated at $15,000 to $20,000, sold for more than ten times its high estimate after an exhaustive bidding battle.
One private buyer in town from Los Angeles confided during a break in the sale that she never buys retail. Instead, she prefers to purchase at auction, where she can get a better price and more interesting jewelry. She came equipped with her iPad and was simultaneously tracking another jewelry auction.
One of the most intriguing lots of the sale was the Oei Tiong Ham necklace of jadeite beads. The necklace has a history dating back to Imperial China. It was most recently owned by a direct descendant of Oei Tiong Ham, a noted businessman of the late nineteenth century and early twentieth century, who ran the Oei Tiong Ham Concern, the largest conglomerate in the Dutch East Indies during that era. The necklace sold for $1,986,500 to a private buyer.
The Next Generation
While the auctions are always filled with jewelry from previous eras and important design houses, this sale also had jewelry from a triad of jewelers whose work occasionally comes up at auction. Their jewels are coveted today and are bound to become tomorrow’s collectibles. Those three designers — JAR, Michele Della Valle and Taffin — are all private jewelers with ateliers in different cities, Paris, Rome and New York, respectively, catering to an elite clientele with sophisticated tastes.
Each of the three designers had pieces in this auction that sold for strong prices. Importantly, all produce only a limited number of pieces each year and none are available in traditional retail outlets. The only way a JAR or Taffin piece comes on the auction market is when one of their clients decides to consign a piece to auction. Della Valle, on the other hand, uses the auctions as a way to develop a clientele. He has, in part, built his reputation on what he sells at the auctions.
“Each of them makes one-of-a-kind pieces,” said Hubbard.
“We live in a global world, so the world is smaller. You see the same things wherever you go, so there is a desire to distinguish yourself and transform an outfit into a personal statement with jewelry. Their jewelry says something that won’t be seen on others.”
JAR, Della Valle and Taffin are the innovators of today in terms of design. Their names are out there with select buyers who are in the know and who run in certain circles of money and influence. Combine that with the limited quantities and the quality of the jewelry that they create and it positions them perfectly to be the collectible names of the upcoming generation.
Going Forward
It used to be that a total in the $30 millions for a jewelry auction was something to crow about, and when the totals flirted with $40 million, it was cause for celebration. The fall 2010 jewelry auctions have seen new heights for sales totals at auction globally. Now the question begs to be asked: “Will these new highs be sustainable?” These past few months have seen remarkable diamonds come to auction, the likes of which will not be seen again for many years, perhaps even decades. But who knows what is hidden in vaults that is yet to be released onto the market? As potential consignors see the prices garnered for rare gems, perhaps they will be tempted to put their jewels on the block — if they are lucky enough to have a megastone tucked away somewhere. In addition, the auctions have been fueled by buyers from cultures that like to have wealth in portable, tangible assets — a trend that will probably continue. One way or another, spring is sure to be an interesting time.
*All prices include buyer’s premium.
* Pictured: Fancy light pink 10.46-carat, internally flawless, type IIa Golconda diamond, mounted in a ring pavé set with white diamonds sold for $2,266,500
Article from the Rapaport Magazine - January 2011. To subscribe click here.