Prices for pink diamonds on the rise, experts say
By Carole Vaporean
NEW YORK, April 15 (Reuters Life!) - Although a 10-carat purplish-pink diamond failed to meet its reserve price at an auction this week, the market for the rare colored gems is still strong, experts said on Friday.
"Pink diamonds are red hot," said David Young, president of Wexford Capital Management, a broker of fancy colored diamonds.
Christie's had expected the 10.09 carat Fancy Vivid purplish-pink diamond to fetch as much as $15 million at its Magnificent Jewels auction. Four other pink diamonds had sold for more than $1 million per carat at auction in the past 15 months.
The record for a diamond sold at auction is held by a Vivid Pink five-carat diamond at $2.1 million per carat in 2009.
Although Christie's did not explain why the gem missed its reserve, gemologists and dealers said once you reach the realms of $1 million-plus per carat, buyers becomes particularly scrupulous.
"When you get up to this level of stone -- these Rembrandts, these Monets, these one-of-a-kind pieces-- they have to be held up to a very high standard if someone's going to put that much money on the table," said Stephen Hofer, a New York research gemologist and diamond cutter specializing in colored diamonds.
Experts agree that prices for colored diamonds, pinks in particular, are on the rise, noting that a barrier was broken in recent years that thrust pinks previously selling for $500,000 to $600,000 a carat into the $1 million-a-carat realm.
While the 10-plus carat pinks stun with their size, diamonds extracted from the Argyle diamond mine in Western Australia command similar sums with the intensity of their color. Continued...