'Blue Moon' Diamond May Fetch $55 Million At Sotheby's

The 12-carat Blue Moon. Photo credit: Cora International/Tino Hammid

A little over a year ago I was invited to view a 12-carat blue diamond, known as the “Blue Moon” prior to its only public exhibition at the Natural History Museum of Los Angeles County.

Suzette Gomes, CEO of Cora International, a manufacturer of diamonds and jewels known for working with statement diamonds, showed the gem on a plain gray tray under office lighting. When asked of its value, she became annoyed barking the word “priceless” a couple times.

Well it turns out that priceless has a price as it will go up for auction at Sotheby’s with an estimate of $35 to $55 million. Any successful bid at the high end of this estimate will shatter the record for a blue diamond, which is $32.6 million paid in November 2014 in Sotheby’s New York for a pear-shaped 9.75-carat rare Fancy Vivid Blue Diamond Pendant owned by Bunny Mellon.

For Gomes and Cora International, it will present what should be a healthy profit for the 29.62-carat rough it purchased for a reported $26 million even after the costs—which include cutting and polishing it into the 12-carat Blue Moon (which took three months, according to Sotheby’s, after five months of study), exhibiting and travel fees and auction commissions.

There are very few people in the world with the means and desire to purchase such a diamond so Sotheby’s has no doubt been in contact with them and must be fairly certain that the gem, now set on a ring, will meet its estimate—and perhaps surpass it. It is obviously the top lot of its November 11 Magnificent Jewels & Noble Jewels sale in Geneva.

The Blue Moon presented to the press at Sotheby's London in September. Photo credit: Sotheby's

So, what the makes the Blue Moon so valuable?

First, it’s size. At 12.03 carats, it is the largest cushion-shaped Fancy Vivid Blue diamond ever to appear at auction.

Second, its report from the Gemological Institute of America. The organization graded the gem as Internally Flawless and Fancy Vivid Blue, the latter being the highest possible GIA grade, David Bennett Sotheby’s International Jewellery Division chairman, reportedly said, adding that about four of the approximately 400 blue diamonds graded by GIA received the “Fancy Vivid Blue” grade. GIA also gave the gem a Type llb classification, meaning that it contains the chemical element boron, which gives blue diamonds its color by being trapped in the crystal structure during its formation.

Third, it’s pedigree. While statement diamonds do come to the market quite often these days, it’s rare that their origin is known. In this case, the 29.62-carat rough was mined in January 2014 at the Cullinan mine in South Africa. The mine is known for producing the top source for blue diamonds in the world but these gems still only account for 0.1 percent of its total diamond output, according to Gomes. It is also the source of at least two other important blue diamonds: the 30.62-carat “Blue Heart,” Fancy Deep blue stone on display at the Smithsonian Institution and the 27.64-carat Fancy Vivid blue “Heart of Eternity.” However, the mine’s most famous find is a colorless 3,106.75-carat diamond discovered in 1905. The rough diamond was cut into several polished gems. The largest is the 530.4-carat “Cullinan I” or “Great Star of Africa;” followed by the 317.4 carat “Cullinan II” or the “Second Star of Africa.” Both gems are in the Crown Jewels of the United Kingdom.

The Blue Moon in the Cora International office, taken in August 2014. Photo credit: Anthony DeMarco

Fourth, it’s color. Gomes and Sotheby’s are describing the Blue Moon as “ocean blue,” “velvet blue,” etc… When I saw it the conditions weren’t ideal but I described it as aqua blue and translucent with the facets appearing as if they are wavelets on water. The blue is also evenly displayed throughout the gem.

Fifth, the combination of these factors. When looking at the pedigree, being Internally Flawless, Fancy Vivid Blue, and over 12 carats, it becomes a once in a lifetime offering. As one gemologist told me, “Try to go find another…. or even anything remotely like it and you’ll come up with a big goose egg.”

So while Gomes’ presentation skills may need polishing, her skill at identifying and buying quality rough; and making and selling world class diamonds is top notch.

Next week we’ll learn its true value. 

A version of this story also appears on my Forbes.com blog

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International Visitors Account For 55% Of Total At Asia’s Fashion Jewellery & Accessories Fair

While the September Hong Kong Jewellery & Gem Fair gets the lion’s share of attention, there’s another trade fair dedicated to fashion and costume jewelry happening at the same time. 

The 13th edition of Asia’s Fashion Jewellery & Accessories Fair – September concluded on September 19 at Asia World-Expo, Hong Kong, with 7,745 buyers from 102 countries and regions passing through its doors. It’s the same venue as the as the materials and technology portion of the much larger September Hong Kong Fair. It’s no coincidence that the fashion trade fair shares a venue with the larger show as they are both owned and operated by UBM Asia.

Over 55 percent of the visitors came from overseas, while around 30 percent and 15 percent came from mainland China and Hong Kong, respectively. The Top 10 sources of visitors outside the Hong Kong region and mainland China were from the United States, India, Korea, Taiwan, Japan, the Philippines, Thailand, Italy, Germany, the Russian Federation and Spain. Altogether, the top 10 accounted for roughly 35% of the total number of visitors.

Asia’s Fashion Jewellery & Accessories Fair – September occupied 11,360sqm of exhibition space and featured 419 suppliers from 13 countries and regions, including mainland China, France, India, Indonesia, Italy, Korea, the Philippines, Thailand, Turkey, the United Kingdom, the United States, and Hong Kong and Taiwan regions. 

“9FJ remains a key platform where industry professionals source products, collect market information and expand business network. The support of buyers and supplier is essential in propelling the growth not only of this fair but also the fashion jewelry and accessories industry,” said Celine Lau, director of Jewellery Fairs at UBM Asia Ltd.

Lau added that the Stainless Steel Jewellery Pavilion remains "a very popular destination for visitors because of the range of silver jewelry and accessories offered by the more than 40 suppliers." Other attractions included five group pavilions housing exhibitors from mainland China, India, Korea, the Philippines and Taiwan. 

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Burmese ‘Pigeon’s Blood’ Ruby Could Fetch $15 Million At Christie’s Hong Kong

A 15-carat Burmese ruby is the top lot at Christie’s Hong Kong Magnificent Jewels sale on December 1.

Known as the “Crimson Flame,” Vickie Sek, deputy chairman and director of Christie’s Asia Jewellery Department, says the jewel is “undoubtedly the most important pigeon’s blood ruby to be offered at auction in Asia.” Its estimate is $10 - $15 million.

The auction at the Hong Kong Convention & Exhibition Centre will include diamonds, colored diamonds, colored gemstones, jadeite and signed pieces.

In addition to the Crimson Flame, there’s the “Mogok’s Fiery Red” suite by Fai Dee, comprising of a Burmese pigeon’s blood ruby and diamond necklace and a pair of pigeon’s blood ruby and diamond earrings that are being offered as individual lots estimated at $6 - 8 million and $2.9 - 4.1 million, respectively.

Two high quality pink diamonds also will be on offer at the sale: A 7.53-carat Fancy Intense Pink diamond ring (pictured above), with an estimate of $5.8 - 8.3 million; and a 5.22-carat Fancy Intense Pink, IF, cushion-shaped diamond ring (estimate $3.2 - 4.5 million).

A 10.11-carat emerald from an Afghan mine, which the auction house describes as having a “high clarity scarcely seen in emeralds and a flawless gem.” Its estimate is $1 - 1.5 million.

In the jadeite category, a two-strand jadeite bead necklace with a diamond clasp by Cartier (pictured above) has an estimate of $3.5 – 4.8 million. In addition, a jadeite cabochon ring has the same estimate. 

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Registration Is Open For 2016 Jewellery & Gem Fair Europe

Registration is now open for the third edition of Jewellery & Gem Fair Europe. The jewelry tradeshow will be held in Messe Freiburg, Germany, from March 19 to 22, 2016. 

The show is “positioned as an effective trading platform for mid- to high-end jewelry” that enables those in the jewelry trade to “source conveniently from global suppliers, without having to travel to overseas fairs,” according to UBM Asia, which owns and operates the trade fair.

In 2015, the fair attracted more 6,500 jewelry professionals from 87 countries and regions, and 440 exhibitors from 28 countries and regions.

Buyers have the opportunity to source products that include diamonds, gemstones, pearls, fine jewelry, and packaging, tools & equipment.

Group pavilions include Antwerp, ACODES, Germany, Hong Kong, Italy, Mauritius, Turkey, Thailand and the United States. Packaging, Tools & Equipment vendors will gather in a theme pavilion.

UBM Asia also owns and operates the September Hong Kong Jewellery & Gem Fair, the world’s largest fine jewelry trade fair. 

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Major Sponsors Renew Commitment To JNA Awards

Partners join hands at the 2015 JNA Awards. (From left) Ira Tsirlina of the Israel Diamond Institute; Naresh Surana of Diarough Hong Kong; Rita Maltez of Rio Tinto Diamonds; Wolfram Diener of UBM Asia; Letitia Chow of UBM Asia; Kent Wong of Chow Tai Fook Jewellery Group Ltd; Caroline Yuan of Shanghai Diamond Exchange; Ye Xuquan of Guangdong Land Holdings Ltd

Rio Tinto Diamonds and Chow Tai Fook will return as “Headline Partners” for the fifth consecutive year of the JNA Awards.

In addition, Diarough Group, Israel Diamond Institute Group of Companies, Shanghai Diamond Exchange and Guangdong Land Holdings Limited have also renewed their sponsorship of the awards. Both IDI and SDE have been championing the JNA Awards since its launch, while Diarough and GDLAND have come on board as “Honored Partners” since 2014.

The JNA Awards honors companies and individuals that have demonstrated excellence and made positive contributions to their businesses and communities, with a focus on achievements made in Asia. Nominees are selected through an independent, transparent and rigorous judging process. The program culminates with a gala dinner and awards ceremony held in association with the September Hong Kong Jewellery & Gem Fair.

“The Awards plays an important role in celebrating and inspiring successes within the gemstone and jewelry industry, and our partners' loyal support has helped us make that happen,” said Letitia Chow, founder of JNA, Director of Business Development—Jewellery Group at UBM Asia, and Chair of the JNA Awards judging panel.

Jewelry trade magazine, Jewelry News Asia, the flagship publication of UBM Asia's Jewelry Group, is the organizer of the JNA Awards. 

“It is particularly gratifying to receive continuous support from these distinguished industry leaders who share our values in promoting best practices within the industry and setting high standards to advance the global jewelry community,” said Wolfram Diener, UBM Asia senior VP. “Their involvement will certainly create synergy to drive the industry forward with greater innovation and sustainable growth.”

The JNA Awards 2015 Ceremony and Gala Dinner was held on September 20 at the Regal Airport Hotel, Hong Kong. The awards gala dinner drew more than 500 jewelry and gemstone industry leaders who celebrated the achievements of 19 award recipients and 31 honorees. 

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Robin Thicke Sings A New Tune As Harry Winston Ambassador

Robin Thicke performs at the Harry Winston Opus 14 unveiling in Baden-Baden

Harry Winston is known for placing its high jewelry on some of the world’s biggest and most beautiful stars of the 20th and 21th Centuries. However, in its 83-year history the luxury jewelry and watch brand has never had an official spokesperson. 

This changed Tuesday when the brand used the unveiling of the Opus 14 in Baden-Baden, Germany, to announce that recording artist Robin Thicke is the new brand ambassador for Harry Winston timepieces. 

Thicke appeared on stage following the Opus 14 presentation and later in the evening to perform many of his hit songs accompanied by dancers during the 1950s themed event. After the event ended he stayed around talking and taking photos with several of the invited guests.

Thicke becomes the first ambassador for the New York City-based brand, which was acquired by the Swatch Group in 2013. 

At a press conference the following day, Nayla Hayek, CEO of Harry Winston, said there was never any search for a brand ambassador. She met Thicke in Cannes and thought he’d be good for the brand, adding that it will be a long-term commitment and wasn’t just supporting the Opus timepiece. 

“He’s not the ambassador of Opus,” she said. “He is the ambassador of Harry Winston watches.”

Thicke is one of the world’s best-known singer, songwriter and producers today, and has worked with several prominent artists, including Christina Aguilera, Nicki Minaj, Pharrell Williams, Usher, Jennifer Hudson and Mary J. Blige. He rose to worldwide fame in 2013 for his hit single "Blurred Lines.”

It is also that song that placed Thicke and Pharrell Williams on the losing end of a $7.4 million copyright infringement case (later reduced to $5.3 million) brought against them by Marvin Gaye’s family. The case is under appeal. He also had a messy public divorce with his former wife Paula Patton. 

Hayek is seemingly undeterred with these issues, saying that Thicke has already been “very positive to the brand and a very professional ambassador for the brand.” 

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Harry Winston Unveils The Opus 14 ‘Jukebox’

America was always a significant part of the Harry Winston brand’s soul and its new owners took to creating a product that honors both the brand and the country.  

The Opus 14, the first Opus timepiece launched by Harry Winston under Swatch Group ownership, takes its inspiration from a nostalgic 1950s view of America, most specifically the jukebox, which brought American rock ‘n’ roll to public venues all over the world. 

The main feature of the Opus 14 is an automaton complication that works like the turntable of a jukebox. It reveals four disks housed in what Harry Winston calls a “store.” Each disk shows a specific display: local time, GMT time, the date and a star bearing the signature of Mr. Harry Winston, a reference to the stars of the Hollywood Walk of Fame.

Harry Winston and the Swatch Group turned to Swiss watchmakers Franck Orny and Johnny Girardin of Telos Watch, to devise and build the timepiece. At a press conference Wednesday, Nayla Hayek, Harry Winston CEO, and Marc Hayek, Blancpain director, said the concept of the watch was already in place when Swatch Group aquired Harry Winston about three years ago but they immediately fell for the idea. 

“The first time we saw this project we fell in love with it,” said Nayla Hayek. “It’s Hollywood. It’s America. It’s Harry Winston.”

Added Marc Hayek, “We really wanted to make it happen. Seeing the idea and bringing it to life is fantastic.”

It was a three-and-a-half year project with done primarily within the Harry Winston watchmaking facilities in Plan-Les-Ouates, Switzerland—with the exception of testing the watch’s accuracy and endurance, which were done at the testing facilities of Blancpain, also owned by the Swatch Group.

The time in hours is already shown on the top disk (the minutes are shown on a separate retrograde display). When pressed for the first time, a push-piece activates a moving arm that picks the disk up and sets it onto the platform to be read like a turntable. While the disk displaying the local time remains in place at 9 o'clock, the chosen GMT, date or star disk is positioned on this platform. Pressing the push-piece a second time once the disk is in place reactivates the arm, which moves the disk back into the store. The first activation takes five seconds and returning the disk to the original position takes three seconds.

The power reserve for the patented HW4601 caliber uses two separate barrels, one for the automaton mechanism and the other for the clock operation. It provides 68 hours for the clock operation and enough power for five back-and-forth disk movements. Although the power reserves are separate and function independently, they are driven by a shared winding crown. A second winding crown is used to set the time. In addition, push-pieces on the lugs at 12 o'clock allow the wearer to correct the date and GMT.

The multi-layered movement and display resulted in a very large watch, even by Opus standards. It’s housed in a case measuring 57.4mm by 21.9mm.  

Design details of the black watch include a red, white and blue color palette and a two-tone insignia bearing the number 14 in a style reminiscent of the Route 66 road sign. These elements and others are designed to recall the rock 'n roll era and the emblematic diner aesthetic, the company said. 

The timepiece, with a total of 1,066 components, retails for 428,000 Swiss francs ($434,600) and is limited to 50 pieces.

The event unveiling the Opus 14 was originally planned for Los Angeles but there are several watch-related events in Switzerland at the same time so they instead opted for the tourist destination of Baden-Baden, a small city in the Germany’s Black Forest renowned for its natural springs and spas. Despite this, Harry Winston took great pains to create the illusion of 1950s Americana in Baden-Baden, with a bevy of 1950s American cars, a staging area set up as a 1950s diner, women servers on roller skates and 1950s rock ‘n’ roll playing throughout the evening. 

The scene certainly played into the nostalgic American theme of the watch.  

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