Colorless Diamonds and Celebrated Collections Lead Sotheby’s Jewelry Sales

A platinum-topped gold and diamond necklace presented to Helen Hay on the occasion of her marriage to Payne Whitney in 1902 was the top lot at Sotheby’s Magnificent Jewels sale. 

The necklace (pictured above) features four diamonds ranging from F to H color, and weighing 27.48, 15.53, 13.08 and 8.91 carats respectively, the necklace sold for nearly $3.2 million. The marriage of Hay and Whitney was a society event that made headlines across the United States. All seven jewels from the estate of Helen Hay Whitney were sold for $4.8 million. 

In addition to the Helen Hay Whitney estate, collection from Estée Lauder, Evelyn H. Lauder and Grand Duchess Vladimir of Russia were among the most sought after jewels from bidders, which included a world record price for a Cartier “Tutti Frutti” bracelet

Jewels from the collections of Estée Lauder and Mrs. Evelyn H. Lauder together achieved $3.9 million, with more than 80 percent of the pieces on offer fetching prices above their high estimates.

Thirty-two jewels from the collection of Evelyn H. Lauder—sold to benefit The Breast Cancer Research Foundation—were led by a “Tutti Frutti” bracelet by Cartier, circa 1928 (pictured above), that sold for more than $2.1 million (more than double its high estimate), marking a new world auction record for any Tutti Frutti bracelet by Cartier.

Ten pieces from the Estée Lauder collection sold to benefit the Alzheimer’s Drug Discovery Foundation were led by a pair of fancy brown-yellow diamond and diamond earclips by Van Cleef & Arpels that fetched $233,000.

A pair of platinum, emerald and diamond pendant-earclips (pictured above) that originally belonged to the legendary collection of Grand Duchess Vladimir of Russia sold for more than $1 million. After being smuggled out of Russia by an English friend of the Duchess following the abdication of the Tsar in 1917, the emeralds descended to the Duchess’s daughter and granddaughter, and were acquired at auction at Sotheby’s Geneva in 1987 for Princess Gloria von Thurn und Taxis, the auction house said. 

From the collection of Marlene Dietrich—the legendary actress, singer and cabaret star—a 14k tri-color gold and lapis lazuli bracelet, Cartier circa 1940, sold for $179,000, nearly six times above its high estimate. The bracelet was a gift from longtime friend Erich Maria Remarque, author of “All Quiet on the Western Front.”

Two platinum and diamond rings were among the top four lots of the auction, showing that despite the trend toward colored diamonds, statement colorless diamonds can still bring in world-class prices. 

The first featured a 25.44-carat emerald-cut diamond of D color, VVS1 clarity and potentially Internally Flawless. It sold for $2.96 million, or $116,548 per carat (pictured above).

The second featured a 47.48- carat, round brilliant-cut diamond of K color, VVS1 clarity that sold for $1.8 million. 

Other highlights of the auction were:

* A platinum and diamond ring centered by a 3.02 emerald-cut fancy grayish blue diamond with VVS2 clarity, circa 1930, sold for $1.4 million, or $478,476 per carat, well above its high estimate.

* A platinum, fancy intense purplish pink diamond and diamond ring, 3.07 carats, SI2 clarity, sold for $1.2 million ($392,508 per carat).

* Platinum and diamond earclips by Harry Winston, 10.20 carats, G color, VVS2 clarity and 9.53 carats, G color,VS1 clarity, sold for $1.08 million ($54,992 per carat).

* Egyptian-revival platinum, diamond and colored stone bracelet, LaCloche Frères, Paris, sold for $1.5 million. 

The December 9 auction achieved more than $44.1 million in sales, with 75.8 percent sold by lot and 81.1 percent sold by value. It raised Sotheby’s worldwide jewelry sales in 2014 to $597.5 million, already surpassing the record $529.3 million the company achieved in 2013 in this category. This is without including Sotheby’s London jewelry sale held Thursday. The auction house estimates that sales for 2014 will exceed $600 million.

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Christie’s Magnificent Jewels Sale Fetches $66.6 Million

89.23-carat, pear-shaped D-color VVS1 diamond sold for nearly $11.1 million.

Christie’s New York ended the auction's house's fine jewelry sale season in the Americas with its Magnificent Jewels sale Wednesday that fetched more than $66.6 million (including premiums), producing a final tally in 2014 of approximately $188 million for the Americas. Worldwide jewelry sales amounted to about $740 million, although a complete sales report will be released by the auction house in January 2015.

The top lot of the New York sale was an 89.23-carat, pear-shaped D-color VVS1 diamond (top photo) that sold for nearly $11.1 million (including premium). The diamond, mounted in a platinum setting, sold at $124,000 per carat. 

Other sales of note included a pair of pear-shaped fancy light yellow diamond ear pendants of 52.88 and 51.46 carats (pictured above) that sold for more than $5.4 million, double its presale estimate; and a 5.25-carat Burmese ruby ring by Harry Winston that fetched $1.65 million, more than triple its low estimate.

Other highlights of the sale include the following:

* A colored diamond suite of 593.61 carats, by Jahan that sold for $4.6 million (the necklace is pictured above).

A 21.30-carat, oval-cut fancy light pink Golconda diamond that sold for $4.25 million, or $200,000 per carat.

* A 32.32-carat, oval-cut D-color VVS1 Potentially Internally Flawless diamond by Bulgari sold for more than $4 million, or $126,000 per carat.

* A 32.72-carat, rectangular-cut D-color VS1 diamond sold for $2.4 million, or $74,000 per carat.

* A 1.42-carat, oval-cut fancy red VS2 diamond sold for $2.16 million or more than $1.5 million per carat.

* A 14.28-carat, marquise-cut fancy brownish pink Internally Flawless diamond sold for more than $2 million, or $143,000 per carat.

* A 5.70-carat, rectangular-cut fancy blue VS1 diamond sold for more than $2 million, or $360,000 per carat.

* A single-strand natural pearl and diamond necklace measuring from 13.10 to 8.00 mm sold for $1.8 million.

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Colorful Louis Comfort Tiffany Antique Jewelry Suite Fetches $161,000 at Bonhams

Photo credit: image courtesy of Bonhams

A rare antique jewelry suite of sapphire, demantoid garnet and enamel attributed to Louis Comfort Tiffany sold for $161,000 (including premium), soaring past its high estimate at Bonhams Fine Jewelry auction in New York.

The suite, created for Tiffany & Co., circa 1920, is led by a pendant centered by an oval, irregularly-domed cabochon sapphire. It sits within a scrolling frame suspending a flexible swag, accented by circular and oval-cut demantoid garnets and sapphires, highlighted by enamel floral sprays and suspended from a chain of floral links. It is completed by a box clasp set with circular-cut sapphires, pendant earrings en suite; chain and pendant earrings.

Photo credit: image courtesy of Bonhams

The top lot of the evening was an 8.45-carat Cartier diamond ring (pictured above). The rectangular step-cut diamond within a pierced and openwork pavé-set diamond surround sold for $293,000. 

Despite being the top lot, the diamond ring must have felt a bit lonely at the sale dominated by rare sapphires, emeralds and other colored gems. As a signed piece, it was among many that were in high demand at the December 8 sale, which realized $4.1 million. 

“More contemporary signed jewels continue to thrive in the auction environment,” said Susan Abeles, VP and director of the Jewelry at Bonhams North America, “The sale was dominated by colorful estate property which was well received by an international audience.”

Other highlights of the sale include:

Photo credit: image courtesy of Bonhams

* A 3.2-carat Kashmir sapphire and diamond ring that fetched $118,750, almost twice the high estimate.

Photo credit: image courtesy of Bonhams

* A sapphire and diamond brooch with a diamond weight of 6.85 carats, which realized $112,500, nine times the high estimate.  

Photo credit: image courtesy of Bonhams

* A Colombian emerald and diamond ring, featuring a large emerald cabochon weighing approximately 50 carats surrounded by diamonds. It achieved $106,250, over 3.5 times the high estimate.

* A late Art Deco ruby and diamond bracelet, circa 1935, with a total diamond weight of 14.00 carats, which sold for $106,250, well past its high estimate.

* Natural button pearl diamond ear studs, each over 10mm, realizing $45,000, close to 6.5 times its high estimate. 

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16 Hearts and Arrows Diamonds Fetch $2.6 Million at Bonhams

Diamonds, jade and a collection of Marina B jewelry were among the top achievers for Bonhams Fine Jewellery and Jadeite auction in Hong Kong. 

The top lot of the November 26 sale was a collection of flawless hearts and arrows diamonds that sold for more than $2.6 million. The collection of 16 brilliant-cut diamonds classified as D color, flawless, internally flawless attracted “spirited” bidding, according to the auction house. 

Each gem is accompanied by its own report from the Gemological Institute of America. The individual weight of the 16 gems ranged from 1.16 to 4.49 carats for a total carat weight of 39.98. Each gem is accompanied by its own report from the Gemological Institute of America. 

Hearts and Arrows are described as a clearly defined set of eight hearts and eight arrows in a round diamond. “It is a sign of excellent optical symmetry, an important component of cut. As such, its appearance is a very likely a sign of superior cut, but not a guarantee.” 

Other highlights include the following:

* An emerald and diamond cluster ring featuring a cushion-shaped, 10.09-carat emerald surrounded by brilliant cut diamonds that sold for $933,588.

* A highly translucent jadeite bangle of a bright apple green color, suffused with intense green streaks that sold for $670,532. 

* A fine two-strand jadeite bead necklace comprising of 49 and 53 graduated bright emerald green jadeite beads of very good translucency with a cabochon jadeite clasp that sold for $670,532. 

* A collection of jewelry designed by Marina B fetched more than $1.2 million. The top lot was a sapphire and diamond “Amelia” necklace and earring suite by Marina B that sold for $624,111. The articulated necklace is set with 12 cushion shaped sapphires, the largest weighing 15.95 carats, within pear and brilliant-cut diamond surrounds, spaced by marquise and pear-shaped diamonds. It is accompanied by a pair of earrings. Total diamond carat weight is 92.30 and total carat weight of sapphires is 104.81, signed by Marina B. 

Graeme Thompson, director of Jewellery at Bonhams Asia said the sale “is testament to the strength of the Asian market for rare items such the flawless collection of Hearts and Arrows diamonds and the Marina B jewels.”

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Two Blue Sapphires Fetch Big Prices at Christie’s London Sale

A sapphire and diamond brooch, circa 1890s, centered with a 14.66-carat, Kashmir sapphire (pictured above) sold for nearly $2.2 million (150,000 per carat), nearly triple its 783,499 high estimate. It was the top lot at Christie’s London Important Jewels sale. 

The cushion shaped sapphire is surrounded by an old-cut diamond cluster raised on a scalloped gallery mounted in silver and gold. The auction house said the jewel was from the collection of the late Clive Behrens, and before that part of the collection of the late Evelina Rothschild. 

In addition, a sapphire and diamond pendant, circa 1880 (above), centered with a 41.54-carat Burma sapphire sold for more than $1.6 million ($39,000 per carat), more than triple its high estimate of $470,099. The sapphire on the gold plated pendant has an old-cut diamond line border and is further surrounded by cushion shaped diamonds. 

Both sapphires show no indications of being heat treated, according to the accompanying reports. 

Colored diamonds continue to demand high prices as a ring featuring a crossover design, set with two opposing pear shaped diamonds, a 1.54-carat fancy deep blue and a 1.78-carat fancy intense pink, sold for nearly $1.2 million, well above its $783,499 estimate.

The November 26 auction totaled $22.75 million in sales with 75 percent sold by lot and 89 percent sold by value. 

“The London sale of Important Jewels showed that quality, rarity and provenance continue to be the key factors sought by collectors worldwide,” said Keith Penton, head of Christie’s London Jewellery Department. 

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Last Chance To View ‘Cycles of Life’ Rings Exhibition

De Clercq Roman diamond ring

“Cycles of Life: Rings from the Benjamin Zucker Family Collection,” will come to end on December 6. So time is running out to view a private collection of more than 40 rings that run from the 3rd to the 19th centuries. In addition, to it being on public view at till December 6 at the Les Enluminures New York gallery, 23 East 73rd St.

Ruby and enamel gold ring

This is the first time that the entire collection is on display together and it will be the last as the entire collection is for sale. 

Ring with diamond-set Shoulders and bezel

Zucker is a well-known gem merchant and author who’s written scholarly publications and practical guides about gems and jewels, as well as novels. An illustrated catalog published by Paul Holberton, London, will accompany the exhibition, which will include contributions by Zucker, Sandra Hindman, founder of Les Enluminures, and Jack Ogden, chief executive of the Gemmological Association of Great Britain.

Gold ring with hand holding a heart

Many of the rings in the exhibition were previously on loan at the Walters Art Museum in Baltimore, which is known for its extensive jewelry collection, and a few pieces were at other museums. 

Mourning ring of Lieutenant Colonel Thomas

“Zucker is a great private collector and owns countless jewels,” said Cecilia Bonn, Les Enluminures Marketing and Communications director. “He really wanted the work cataloged. Sondra is good at applying scholarship to collections and specializes in Medieval and Renaissance manuscript illuminations, and Roman and byzantine jewelry. There’s a real compatibility here.”

Gold Jewish Marriage ring

Among the standouts is a Roman diamond ring that dates back to the third or fourth century. Once part of the de Clercq collection of Roman and Byzantine jewelry, the ring is centered by a natural uncut diamond with a double pyramid set in a high openwork bezel. It was acquired by Zucker in the 1970s, and loaned as the showpiece of the international traveling exhibition, “Diamonds and the Power of Love,” organized by the De Beers. The diamond giant declared that “the story of the diamond ring begins here”. It was most recently on display at the Museum of Fine Arts, Boston. It is second largest known surviving rough Roman diamond ring. 

Gold Signet ring with a merchant's mark and initials

“The roman uncut diamond ring one of 12 in existence that we know of,” Bonn said. “Seven of the rings are in the British museum and six are in private collections.”

Jewish marriage ring

Other standouts are an Italian made 14th Century Medieval sapphire and gold ring set with a 10th- century sapphire inscribed in Arabic; and a German-made 1631 diamond, ruby, and enamel gimmel ring, from the Rothschild Collection. 

Rothschild diamond ring

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Harry Winston to Pay $500 Million for Ekati Diamond Mine

Ekati Diamond Mine
Photo credit: Jason Pineau, through Wikipedia

Harry Winston Diamond Corp. said Tuesday that it has entered into share purchase agreements with BHP Billiton Canada Inc. and other affiliates to acquire all of BHP Billiton’s diamond assets, including its controlling interest in the Ekati Diamond Mine as well as the associated diamond sorting and sales facilities in Yellowknife, Northwest Territories and Antwerp, Belgium.

The Ekati Diamond Mine, located in the Northwest Territories of Canada, consists of the Core Zone, which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes having both development and exploration potential. The agreed purchase price, payable in cash, is $400 million for the Core Zone interest and $100 million for the Buffer Zone interest, subject to adjustments in accordance with the terms of the share purchase agreements.

“Completion of this acquisition will bring the opportunity to marry our Canadian diamond sorting and marketing skills with an experienced mine operating and development team, a world class operating asset, and future growth potential,” said Robert A. Gannicott, Harry Winston chairman and CEO. “Together with our existing mining business, these assets will serve as our platform for sustained, disciplined growth in the upstream diamond sector.”

Harry Winston, known for its luxury retail salons throughout the world, also supplies rough diamonds to the global market through its 40 percent ownership interest in the Diavik Diamond Mine, also located in the Northwest Territories. The company was looking to sell its retail assets, according to media reports, which it denied. Harry Winston also was reportedly in talks to buy the remaining interest in Diavik from its partner in the venture, Rio Tinto Diamonds. Talks between Harry Winston and BHP Billiton for the Diavik Diamond Mine were first reported in August.

The Ekati Diamond Mine, approximately 310 kilometers northeast of Yellowknife in the Northwest Territories of Canada, includes both open pit and underground operations and is Canada’s first, and largest, diamond producer, having begun production in 1998.

The Ekati Diamond Mine has produced an average of approximately three quarters of a billion dollars of rough diamonds per year over the past five years, Harry Winston said in a statement. Over that period sales from the Core Zone represented approximately 6 percent of world rough diamond supply by value. The current phase of production at the Ekati Diamond Mine includes ore sourced primarily from the lower grade, but high carat value, Fox open pit supplemented by underground production from the lower portion of the Koala kimberlite pipe and from the Koala North pipe. Although production in the next two years is forecast to be lower than the average achieved over the last five years, it is expected to return to higher levels as the mine transitions to higher grade, but lower carat value, ore from the Misery and Pigeon open pits. The current Ekati mine plan calls for a further seven years of production, but there are additional resources which could become economic with increased diamond prices.

The Core Zone and the Buffer Zone are subject to separate joint venture agreements. BHP Billiton holds an 80 percent interest in the Core Zone and a 58.8 percent interest in the Buffer Zone, with the remainder held by the Ekati minority joint venture parties. Harry Winston has agreed to purchase BHP Billiton’s interests in each of the Core and Buffer Zones. Pursuant to the joint venture agreements, BHP Billiton will first separately offer to the joint venture parties its interest in each of the Core and Buffer Zones on the same terms as those agreed to by Harry Winston. The joint venture parties will then have 60 days to elect to acquire either or both of those interests. Any interests that the joint venture parties do not elect to acquire within that time period can then be transferred to the Company in the following 60 days.

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Blue Nile CEO Resigns; Q3 Sales Up 11%

Diane Irvine

Diane Irvine, Blue Nile CEO, president and director, who has been with the diamond and fine jewelry online retailer since the company was founded in 1999, has resigned, effective November 11. The announcement came just minutes before the Seattle-based company reported that third quarter sales increased 11.2 percent to $75 million. Operating income for the quarter totaled $2.9 million, representing an operating margin of 3.8 percent of net sales.

Vijay Talwar, senior VP and general manager of the company’s international business, has been appointed interim CEO. During the transition period, chairman Mark Vadon, who founded the company, said in a conference call that he will take an active role in the leadership of the company, working closely with Talwar. With the support of the Board, Vadon said he will lead the search for a permanent CEO.

“Diane has been with Blue Nile since its formation and we wish her well in her future endeavors,” Vadon said. “Diane has worked with me on the business since 1999. She has been a tremendous business partner, making countless contributions in her 12 years at Blue Nile. During Diane's tenure as CFO and CEO, the company has grown sales from $14 million to over $300 million and has become one of the world's largest fine jewelers.”

Talwar joined Blue Nile in August 2010. From November 2010 to August 2011, Talwar also served as Blue Nile's CFO. Prior to Blue Nile, he served as CEO of the William J. Clinton Foundation in India, where he provided strategic, financial and operational leadership across health care and sustainability programs in India and South Asia. Before joining the Clinton Foundation, he was at Nike, where he held a number of executive leadership positions, including COO for Nike CEMEA (Central Europe, Middle East and Africa) based in Amsterdam.

“Serving both as the head of international operations and as the company's Chief Financial Officer, Vijay has developed a deep understanding of the Blue Nile business,” Vadon said. “Further, his strong branding experience makes him ideally suited to lead the company's daily operations during this transition period.”

Blue Nile Highlights for the third quarter, ended October 3, include:

* International sales grew 54.8 percent in the quarter to $14.4 million, a record level for any third quarter in Blue Nile's history. Excluding the impact from changes in foreign exchange rates, international sales increased 46.2 percent.

* Gross profit for the quarter totaled $14.8 million, an increase of 1.4 percent from the prior year. As a percentage of net sales, gross profit was 19.8 percent compared to 21.7 percent for the third quarter of 2010.

* Selling, general and administrative expenses for the quarter were $12 million, compared to $10.4 million in the third quarter of 2010. Selling, general and administrative expenses included stock-based compensation expense of $1.6 million in the third quarter.

* At the end of the third quarter, cash and cash equivalents totaled $40.2 million.

* During the third quarter, Blue Nile repurchased 880,300 shares of its common stock for $30.9 million.

“Our record third quarter sales exceeded the high end of our guidance and was driven by solid growth in our engagement and non-engagement businesses,” Talwar said. “We also continue to experience exceptional growth in our international business, validating the value proposition we have for our consumers abroad. Overall, engagement sales growth at the high-end continues to perform very well, showcasing the depth of selection we have in the luxury category. Key to our strategy, we will continue to aggressively invest in our brand and business through marketing programs and additional merchandising assortments. “During the quarter, we repurchased $30.9 million of stock, underscoring the confidence we have in the long-term potential of our business.”

Anglo American Buys 40% Stake in De Beers Group for $5.1 Billion

The Oppenheimer family, which has owned the the De Beers Group  for more than 80 years, announced Friday that it will sell its remaining stake in the company to Anglo American plc for $5.1 billion in cash.

The move will boost Anglo American’s current 45 percent stake in De Beers to 85 percent. Nicky Oppenheimer will remain as chairman of De Beers and the recently hired CEO, Philippe Mellier, will remain in his position, the London-based mining company said.

Anglo American has entered into an agreement with CHL and Centhold International Limited (“CIL”), together representing the Oppenheimer family interests, to acquire their 40 percent interest in DB Investments and De Beers SA, the two companies said in a joint statement.

Under the terms of the existing shareholders’ agreement between Anglo American, CHL and the Government of the Republic of Botswana, the GRB has pre-emption rights in respect of the CHL Group’s interest in De Beers, enabling it to participate in the transaction and to increase its interest in De Beers, on a pro rata basis, to up to 25 percent. In the event that the GRB exercises its preemption rights in full, Anglo American, under the proposed transaction, would acquire an incremental 30 percent interest in De Beers, taking its total interest to 75 percent, and the consideration payable by Anglo American to the CHL Group would be reduced proportionately.

Anglo American had been the largest shareholder in De Beers since it became a private company in 2001 and as a longstanding shareholder in De Beers prior to that.

“De Beers’ geographically diverse portfolio comprises large scale, low cost mining assets with proven distribution, sales and marketing capabilities and further potential from its leading pipeline of greenfield and brownfield projects and an expanding consumer-facing footprint,” Anglo American said in the statement.

“Today’s announcement marks our commitment to an industry with highly attractive long term supply and demand fundamentals,” Cynthia Carroll, chief executive of Anglo American, said in the statement. “Underpinned by the security of supply offered by a new 10-year sales agreement with our partner, the Government of the Republic of Botswana, this forms a compelling proposition.… I believe that the benefits brought by Anglo American’s scale, technical, operational and exploration expertise and financial resources, combined with the unquestionable leadership of De Beers’ business and iconic brand will enable De Beers to enhance its position across the diamond pipeline and capture the potential presented by a rapidly evolving diamond market.”

Nicky Oppenheimer, De Beers chairman representing the Oppenheimer family interests, said: “This has been a momentous and difficult decision as my family has been in the diamond industry for more than 100 years and part of De Beers for over 80 years. After careful and deliberate consideration of the offer, and what is in the best interests of the family, we unanimously agreed to accept Anglo American’s offer. Anglo American is the natural home for our stake as they have been major shareholders in De Beers since 1926 and have a deep knowledge of the diamond business.”

The Minister of Minerals, Energy, and Water Resources, Dr. Ponatshego H Kedikilwe, on behalf of the Republic of Botswana said: “The diamond industry is a major contributor to our economy in Botswana. We are grateful to the Oppenheimer family for their vision and contribution to the diamond industry and to Botswana and we will proudly take forward that legacy with Anglo American. We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture.”

The transaction is expected to be accretive to underlying earnings before depreciation and amortization on fair value adjustments in the year of acquisition, Anglo American said.

Blue Nile Sales Up 19.8 Percent

Blue Nile said Thursday its net sales increased 19.8%, year-over-year, to $89.8 million for the third quarter due to a increases in all its product categories, including its new focus on fashion jewelry, and a large increase in new customers. However, international sales fell for the period ended September 30.

Operating income for the diamonds and jewelry Internet retailer totaled $2.7 million, representing an operating margin of 3 percent of net sales. Net income totaled $1.7 million, or $0.14 per diluted share. Non-GAAP adjusted EBITDA for the quarter totaled $4.8 million.

"We are excited to report solid results in the third quarter, with accelerating revenue growth and expanding earnings per share, said Harvey Kanter, president and CEO of the Seattle-based company. “The execution of our strategy is clearly on track. Investments we made in marketing and pricing are working and building momentum behind the strength of our diamond engagement products. Sales of our non-engagement products also improved this quarter, and we are only beginning to launch an assortment of new jewelry aimed to further accelerate our growth. With continued steady execution of our strategy coupled with exciting product offerings for the holiday season, we believe we are well positioned to achieve our goals for 2012.”

Among the highlights for the third quarter:

* U.S. engagement net sales increased 31.5 percent to $54.1 million.
    
* U.S. non-engagement net sales (a new focus for the company) increased 12 percent to $21.8 million.
    
* International net sales fell 3.3 percent to $14.4 million for the third quarter 2011. Excluding the impact from changes in foreign exchange rates, international net sales decreased 1.5 percent.
    
* Gross profit totaled $16.9 million. As a percent of net sales, gross profit was 18.8 percent compared to 19.8 percent for the third quarter of 2011.
    
* New customers grew 22.4 percent.  
    
* Selling, general and administrative expenses were $14.3 million, compared to $12 million in the third quarter of 2011.
    
* At the end of the third quarter, cash and cash equivalents totaled $30.2 million.

In its financial guidance, the company said it expects fourth quarter net sales to be between $140 million and $153 million, with earnings per diluted share are projected at $0.44 to $0.50.

For the fiscal year it expects net sales to be between $404 million and $417 million, with earnings per diluted share are projected at $0.70 to $0.75.

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‘Pigeon’s Blood’ Ruby Necklace Leads Diverse Christie’s Hong Kong Jewelry Sale

CHRISTIE'S IMAGES LTD. 2011

It’s a rare jewelry auction these days where diamonds are not the most prestigious items for sale. This auction will break the trend as leading the sale of Christie’s Hong Kong Magnificent Jewels Autumn sale is a Burmese no heat “pigeon’s blood” ruby and diamond necklace (pictured above) with matching earrings (below) by James W. Currens. The necklace has an auction estimate of $3.5 to $5.5 million; and the earrings have estimate of $2.5 million to $3.5 million.

CHRISTIE'S IMAGES LTD. 2011

Designed as twenty-six graduated oval-shaped rubies weighing between 5.38 and 1.27 carats, each ruby comprising the necklace named, “Red Scarlet” is accented by a cluster of marquise and pear-shaped diamonds, mounted in platinum and 18k yellow gold. The matching pair of earrings are titled the “Red Butterflies” for their shape, and each feature a pair of Burmese rubies over 7 carats. The rubies all come from the Mogok Stone Tract in Upper Burma, which is considered to be the source for the finest quality “pigeon’s blood” rubies, the term used to describe the brightest and most valuable red color for rubies.

More than 300 items will be on sale for the November 27 auction at the Hong Kong Convention & Exhibition Centre. The pre-sale estimate is valued at approximately $70 million. An assortment of diamonds, emeralds and sapphires from the world’s legendary mines, natural seawater pearls, and, being Hong Kong, jadeite jewelry will be among the items featured. Highlights include: 

Emerald, pearl and diamond earrings in platinum, featuring Colombian pear-shaped emeralds weighing 23.34 carats and 23.18 carats. Its estimate is $3.5 million to $4.8 million. CHRISTIE'S IMAGES LTD. 2011

Diamond and pearl earrings, featuring a pair of 6-carat pear-shaped diamonds from the legendary Golconda mine in India. Its estimate is $1.2 million to $1.9 million.  CHRISTIE'S IMAGES LTD. 2011

A natural pearl and diamond necklace with an estimate of $1.2 million to $1.5 million. CHRISTIE'S IMAGES LTD. 2011

A lavender jadeite bead necklace, consisting of 63 slightly graduated jadeite beads measuring from 8.8 to 11.3 mm, and a jadeite cabochon and diamond clasp mounted in 18k white gold. Its estimate is $1 million to $1.5 million. CHRISTIE'S IMAGES LTD. 2011

A 36.58-carat fancy brown diamond ring with an estimate of $1 million to $1.5 million. CHRISTIE'S IMAGES LTD. 2011

An 8.59-carat fancy pink cut-cornered rectangular-cut diamond and sapphire ring, by Paris-based American jeweler, JAR. Its estimate is $3 million to $4.5 million. CHRISTIE'S IMAGES LTD. 2011

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World’s Largest Diamond Bourse Opens in India

Nearly two decades in the making, the world’s largest diamond exchange opened Sunday in Mumbai. It will no doubt challenge the dominance of traditional bourses in Antwerp and Tel Aviv. On its first day the new facility did about $7 million worth of diamond import business, according to a published report.

The 20-acre Bharat Diamond Bourse has eight interlinked nine story office towers, containing 2,500 offices, four walk-in vaults, 24,500 safe deposit boxes and a 6,200 square foot trading floor. It is designed to house exporters, importers, clearing agents, banks, and customs departments. Other amenities include restaurants and food courts for visitors, businesspersons and clients.

India is already the leading diamond manufacturer in the world. It accounts for 70 to 75 percent of world diamond exports, worth about $28 billion annually and employs approximately 850,000 people. India diamond officials are hoping that the bourse, at a cost of $200 million, will the allow country to gain dominance in the diamond trading business as well.

Disputes between the committee overseeing the diamond bourse, its architects and contractors and payment defaults by members during the 1995-99 property slump put the project on hold in 1998, according to published reports. It was restarted in 2001. The delays resulted in estimates ranging from a 20 percent to a doubling of overall costs once the project was completed.

50-Carat Flawless Diamond Sells for $9.5 Million

50.52-Carat Pear-Shaped Diamond that sold for $9.5 million.
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NEW YORK — Big diamonds sparkled during Christie’s sale of Magnificent Jewels in New York on Tuesday. Leading the way was a pear-shaped D color flawless diamond of 50.52 cts., which sold for $9.5 million, or $188,000 per carat, to a private collector. The stone is mounted in platinum and may be worn suspended from a necklace with a 2.28 carat, circular-cut D-color diamond surmount.

It was one of several major diamond lots sold during the auction of 369 lots held during two sessions Tuesday. The other top sellers were:

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* A pair of pear-shaped fancy yellow and colorless diamond ear pendants of 52.78 and 50.31 cts.(pictured above)  that achieved $4.5 million. The diamonds are surmounted by circular-cut fancy yellow and white diamonds Mounted in yellow and white gold. The pendants may be easily swapped or detached completely, giving the owner three options for how to wear them. Its estimate was $4.5 - $6.5 million. The buyer was listed by Christie’s as Aleks Paul of Essex Global Trading.

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* A 68.35-carat oval-cut fancy intense yellow, internally flawless diamond sold for $3.16 million. The gem with excellent polish and symmetry had an estimate of $2.2 - $3.2 million.

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* A pear-shape fancy light pink SI1 diamond ring sold for of 10.52 cts sold for $2.21 million, or $210,000 per carat; well above its estimate of $1 million to $1.5 million.

* A 28.20-carat square-cut fancy intense yellow VVS1 diamond ring by Van Cleef & Arpels that sold for $902,000.

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* A 10.05-carat pear-shaped diamond on a ring, flanked on either side by a pear-shaped diamond, mounted in platinum took in more than $1.2 million.

* A 12.05-carat pear-shape F color flawless diamond that sold for $842,500.

* An 11.68-carat marquise-cut F color VS1 diamond ring by Harry Winston that sold for $746,500.

All totaled, the auction achieved $50 million and had a sell-through rate of 87 percent by lot and 93 percent by value.

“Private collectors and dealers reacted more than positively to a 369-lot auction that was finely-tuned in terms of prices and selection of gems to current market conditions,” said Rahul Kadakia, Head of Jewelry, Christie’s Americas and Switzerland. “Natural pearls, colorless flawless diamonds, and colored diamonds of high quality once again dominated the day, making for a vibrant atmosphere in the saleroom.”

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Natural pearls again proved to be a dynamic force in the auction market. This was underscored by the sale of a double strand natural pearl necklace for $3.66 million (pictured above). It has 120 large-sized individual pearls, ranging in size from 6.50 mm to 12.25 mm in diameter, and ranging in coloration from white to light cream, with subtle rosé and green overtones and superb luster. It is accented with a 3-carat, D color diamond clasp signed by Cartier. Its estimate was $2.8 – $3.5 million.

During the morning session, a single strand of 83 natural pearls, measuring from approximately 3.15 to 9.75 mm, sold for $158,500, nearly double its high estimate; and an antique diamond and sapphire brooch set with a natural baroque pearl, measuring approximately 15.90 – 16.70 x 20.40 mm, brought in $170,500, nearly tripling its high estimate.

CHRISTIE'S IMAGES LTD. 2012

In addition, a 32.31-carat cushion cut Burmese sapphire ring (pictured above) sold for $986,500, nearly double the high estimate of $500,000.

Bidding was robust throughout the day, gaining strength in the afternoon session, with dealers in the back of Christie's saleroom loudly clamoring for attention, competing with those in the front of the room and many phone and online bidders.

Sharing the auctioneer duties was Kadakia, along with Christie's Asia president, François Curiel, the Christie’s jewelry veteran who moved to Hong Kong recently to head the auction house’s jewelry operation in the booming Asia market.

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