Leibish Wins 26 Argyle Pink Diamonds As Overall Results Appear Lackluster

The five "hero" diamonds from the 2015 Argyle Pink Tender, including the Argyle Prim,” a 1.20 carat Fancy Red pear shaped diamond

Rio Tinto owner of Australia’s Argyle Mine is always tight-lipped when it comes to the results of its annual tender of rare pink and red diamonds. But their public statements are always upbeat. Not so much this year. 

It’s always difficult to gauge the results of the private sale as the mining company refuses to release figures but the annual press release provided even fewer details of this year’s sale than in prior years.

The 2015 Pink Diamonds Tender collection of 65 rare pink and red diamonds weighing a total of 44.14 carats from its Argyle diamond mine “delivered an exceptional result, reflecting global demand and sustained price growth,” according to a press release from the Rio Tinto mining company. However, statement falls short of defining why it was “exceptional.”

About 90 percent of the entire world supply of rare pink and red diamonds comes from the Argyle diamond mine in the remote east Kimberley region of Western Australia. The Argyle pink diamond is one of the few gemstones identified by its unique origins with a color range. In recent years, the annual sale of these gems included blue diamonds from the Argyle mine in a separate tender.

In addition to their beauty, rarity and provenance, the mine’s output of these diamonds is near its capacity and the mine is scheduled to close in 2020. So the diamonds being sold now will likely become even more valuable.

A “tender” in this instance is basically a blind bid. Invited buyers come in and view the diamonds in undisclosed locations in Sydney, Hong Kong and New York. Each diamond is unadorned in identical boxes with basic details listed, including carat weight, shape and color. Each person places a bid on the diamonds they are interested in buying without knowing their estimate or what others bid. It can be quite a stressful situation for buyers. 

Five of the 30 diamonds purchased by Leibish & Co. at the Argyle Pink Tender (26 pink and red, and four blue)

“You need to fully understand the market prices and the value these stones possess. You have only a short time to assess each of the stones and all the pressure of competing against all the top diamond buyers that exist,” said Leibish Polnauer, founder of Leibish & Co., which sells fancy colored diamonds and jewelry to consumers and the trade through its eCommerce website. 

The Israeli company takes part in the bidding annually and this year it appears they are the big winner as it managed to place a successful bid on 26 pink and red diamonds, ranging from approximately 0.15-carat to 0.75-carat, about 40 percent of the total available. It also successfully bid for four blue diamonds. 

When asked how he managed to win such a large percentage of the tender diamonds, Polnauer said it’s important to understand the gem, the market and the growth of its value so his customers can profit from the gem. 

“I have to bid very high prices. The tricky part is understanding the stone’s potential. The highest bid wins, so I need to adequately assess the market and not bid too high.”

Rio Tinto did disclose who won the most valuable diamond in the 2015 collection, although it did not disclose the price. The “Argyle Prim,” a 1.20 carat Fancy Red pear shaped diamond, was won by Sciens Coloured Diamond Fund II BV, for an undisclosed value. It was one of the five most valuable diamonds offered in the sale, which Rio Tinto referred to as “Hero” diamonds.

The others who placed winning bids remain unknown.

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12-Ct. Pink Diamond Unearthed In Australia

The Argyle Pink Jubilee. Picture credit: AAP via the Herald Sun

A 12.76 carat diamond was found at the Argyle diamond mine in the East Kimberley region of Western Australia. It’s the largest pink diamond ever found at the famed mine, the largest producer of pink diamonds in the world.

It is expected to fetch at least $10 million according to a report in the Herald Sun newspaper in Melbourne, Australia.

Owned by mining giant Rio Tinto, the mine is estimated to have a 10-year supply left of these pinks so it’s likely this will be the largest diamond ever found at the mine.

The diamond will be known as The Argyle Pink Jubilee, Rio Tinto said in a statement.

The Argyle Pink Jubilee is a light pink diamond, similar in color to The Williamson Pink, which is the diamond that Queen Elizabeth II received as a wedding gift and was subsequently set into a brooch for her Coronation.

Expert diamond polisher Richard How Kim Kam, who has been at Argyle for 25 years, started the work to begin polishing the pink diamond, Rio Tinto said. After two months of assessment and planning, it will take about 10 days to cut and polish the diamond as a single stone.

“I'm going to take it very carefully,” he said. “I know the world will be watching.”

When the diamond has been cut and polished it will be graded by a team of international experts and showcased to the world before being sold as part of the annual Argyle Pink Diamonds Tender later this year. The best Argyle pink diamonds are shown in major cities around the world to a select group of diamond dealers where they view the diamonds and place silent bids on the ones that catch their eye. They find out months later if their bids have won. 

 “A diamond of this caliber is unprecedented—it has taken 26 years of Argyle production to unearth this stone and we may never see one like this again,” said Josephine Johnson, Argyle Pink Diamonds manager.

More than 90 per cent of the world's pink diamonds come from the Argyle mine.

Large pink diamonds tend to go to museums, are gifted to royalty or end up at auction houses. Christie's auction house has only sold 18 polished pink diamonds over 10 carats in its 244 year history.

The Fairest Diamond of them All, the Argyle Pink

A 2.02 cts. Argyle Pink diamond. This round brilliant fancy vivid purplish pink diamond was the largest of the 55 Argyle Pink diamonds that were tendered in 2010. Photo by Gary Roskin

They come from the land “down under.” Their singular source is a mine in a barren patch of Northwestern Australia. They are the Argyle Pink diamonds, among the rarest and most beautiful gems in the world.

Each year, Rio Tinto’s Argyle Diamond Mine produces 20 to 25 million carats of gem quality diamonds. Out of that bounty a relative handful of diamonds are good enough to be called “Tender Stones.” “These diamonds represent the true needles in the haystack,” according to gemologist Gary Roskin, in his story about the Argyle Pinks.

These diamonds are prized because of their deep, rich pink colors, which range from a light pink to almost red. Each year the diamonds considered good enough for tender go on a world tour of major cities where a select group of dealers can view the diamonds and bid on them. The dealers place private bids on the diamonds they want and go home and wonder if their bid was too high or low.

In 2010, 55 diamonds, ranging from 0.49 cts. to 2.02 cts. went on tour. As usual, when the diamonds came to New York, Roskin was the only person to view and photograph the diamonds for publication. He wrote all about it on his website, The Roskin Gem News Report, and provided lots of pictures, like the one above. In addition, he interviews a bidder and another professional who is an expert on color diamonds who attended the tender. Read all about it here.