Editor’s Note
This article explores the growing trend of fine jewelry, particularly rare pink diamonds, as a serious alternative investment class. Driven by scarcity and aesthetic desire, these assets are attracting significant attention and record-breaking sales at major auction houses.
Fine jewelry from the 21st century is gaining global momentum as an alternative investment alongside artworks, fueled by its scarcity and the intense desire to possess beauty. Major auction houses, long focused on Impressionist and contemporary art, are increasingly noting the value of rare gemstones and heritage jewelry, achieving significant sales in this sector. While money can buy jewelry for anyone today, paradoxically, it is an era where only those who truly understand the scarcity and context of jewelry can become genuine gemstone investors.
On November 28, Christie’s Hong Kong’s Magnificent Jewels auction recorded total sales of USD 94 million. Amid the strong performance of traditional staples like colored diamonds, large-carat diamonds, the three major untreated precious stones (emerald, ruby, sapphire), and jadeite, the activity of pink diamonds was particularly notable. The auction sparked buzz as various pink diamonds, including the representative 14.93-carat Fancy Vivid (the highest color grade for colored diamonds) ‘Pink Promise’, were sold at high prices.
The ‘Pink Promise’, dubbed the ‘Picasso of Pink Diamonds’ even before the auction, captured public attention and was hammered down for USD 32 million, the highest price ever for a jewel at a Christie’s auction in Asia. Consequently, it also set a record price per carat for a pink diamond at USD 2.15 million, tying the record set by a 5-carat Fancy Vivid pink diamond sold at Christie’s Hong Kong in 2009. However, its value was recognized even higher due to its scarcity, boasting a weight nearly three times greater and a unique ‘Moval cut’ that combines the advantages of oval and marquise cuts.
The result was a reduction in weight to 14.93 carats, but an upgrade in color to the top-tier Fancy Vivid and clarity to VVS1! This was a risky gamble that could have resulted in a loss of weight only, but it stands as a successful case proving that the core of a colored diamond is indeed its ‘color’. For rare stones like pink diamonds, even a slight reduction in carats can mean a loss amounting to hundreds of thousands of dollars.
Pink diamond prices have risen markedly over the past decade. Demand is particularly explosive for pink diamonds from the Argyle mine in Australia, operated by Rio Tinto. Beyond scarcity, marketing and changing consumer perceptions are cited as factors. As the trend for seeking something special and different grows stronger, the ‘Hollywood effect’—where celebrities propose with pink diamonds instead of white ones—has also played a part (examples include Ben Affleck’s Harry Winston pink diamond ring for Jennifer Lopez and David Beckham’s pink diamond ring gift to Victoria).
While high-value sales traditionally occurred in Geneva or New York, recently, ultra-high-price sales in Hong Kong have been prominent. Last April, Sotheby’s Hong Kong saw the ‘Pink Star’, a 59.6-carat Fancy Vivid pink diamond, sell for USD 72 million to Hong Kong jeweler Chow Tai Fook, setting a record for the highest price ever achieved for a jewel at auction. Meanwhile, the November 15 Sotheby’s Geneva auction saw several colored diamonds go unsold, creating a sense of crisis in the market. Fortunately, the successful sale of the Pink Promise this time helped restore some confidence.
Following a successful joint auction with four jewelry artists last spring, Christie’s Hong Kong featured works by the renowned jewelry artist Wallace Chan in its autumn auction, achieving a 100% sell-through rate. Chan, known for his unique designs and identity, had 27 of his early works carefully selected for this exhibition. Wallace Chan is a designer who boasts high artistry, not only in using beautiful and rare gemstones but also in masterfully applying titanium to high jewelry. He has been credited with elevating jewelry to the level of ‘wearable’ new artistic masterpieces, having invented the ‘Secret Abyss’ using phantom quartz.
Titled ‘Wallace Chan: The Beginning of a Genius’, this exhibition served as a retrospective of sorts for Chan, who turned 61 this year. Most importantly, it highlighted his most innovative works from the late 20th century, a pivotal period in his journey of self-discovery. The works presented spanned a broad spectrum, from carved quartz to a massive diamond pendant and art objects featuring a feast of colored gemstones, with estimates ranging from USD 5,100 to USD 231,000. The response was successful, with most lots achieving excellent results well above their estimates (hammer prices ranged from USD 75,000 to USD 412,000).
Their creations, perfected over long periods of trial and error, inevitably generate heated bidding when they appear at famous auctions. Furthermore, as they produce only a very limited number of pieces per year, they have firmly established themselves as the most coveted objects for collectors. Of course, investment and interest are still concentrated on works using rare gemstones, but there is a growing number of collectors who highly value a designer’s unique aesthetic—filled with unexpected wit that challenges the existing order—innovative techniques, and the stories embedded in the jewelry.
This Wallace Chan auction marks the second positive case of collaboration between a uniquely talented jewelry artist and a major auction house, successfully catching ‘two rabbits’—marketing and sales for both sides. Although limited to the Greater China market, it is an encouraging result that also proves the collectible value of designer jewelry. Expectations are high for what interesting elements Christie’s, which is making new attempts in various fields to secure sales, will incorporate in the future to enhance the added value of fine jewelry.
Written by Yoon Sung-won (Jewelry Columnist, Adjunct Professor, Department of Gemology, Graduate School of Engineering, Hanyang University)
Edited by Eom Hye-rin