DIAMONDS


Six-Carat Blue Diamond Breaks 20-Year-Old Record in Hong Kong

A flawless, 6.04-carat, blue diamond ring sold for HK$61.9 million ($8 million) at Sotheby's in Hong Kong, breaking a 20-year-old auction record for a gem.

The diamond surpassed the per-carat record set in 1987 in New York when a red 0.9-carat diamond sold for the equivalent of $926,000 per carat, Sotheby's said in a faxed statement. An emerald rope-necklace that previously belonged to the American songwriter and lyricist Irving Berlin also sold for HK$20.5 million, including commission, at yesterday's sale in Hong Kong.

The winning bidder for the blue diamond, which had a pre-sale top estimate of HK$48 million, was Moussaieff Jewellers, according to the auction house. The London-based jeweler couldn't immediately be reached for comment. A carat is a fifth of a gram.

The world's largest blue diamond is the 45.52-carat Hope Diamond, according to Web site Internet Stones.com.

The auction of gems and jewelry fetched a combined HK$316.8 million. Of the 327 lots offered, 212 were sold, Sotheby's said. Asian buyers bought five of the 10 most-expensive lots, according to the statement.

The sale was part of Sotheby's four-day auction of ceramics, paintings and jewels, which ends this evening.

Sotheby's and bigger rival Christie's International hold biannual auctions in Hong Kong, the world's third-largest art auction market after New York and London.   2007 October 9    BLOOMBERG

Aristrocratic rocks

(GENEVA) A Sotheby's employee presenting a cushion-shaped yellow diamond weighing 102.54 carats (left) and a pear-shaped yellow diamond weighing 82.48 carats (right), property of the aristocratic Donnersmarck family, during a press preview here on Tuesday. The Donnersmarck diamonds are each estimated to fetch US$1.5 million to US$2 million at Sotheby's jewels sales on May 17, in Geneva. - 2007 May 11

King of Diamonds
Harry Winston's love affair with the Hope

On Monday, April 4, 1949, a package wrapped in brown paper was handed across a counter, registered, insured, and stamped, which cost $159.87, and with person-to-person handling guaranteed and guards to dance attendance along the way, travelled by train from Washington to New York. There, its addressee, who regularly shipped gems to himself by parcel post, and who often said, "If you can't trust the United States mails, who can you trust?" eagerly awaited it.

The next morning, an armoured truck pulled up at a six-storey greystone mansion at 7 East 51st Street, which bore the sign "Harry Winston Inc." Inside was the proud, excited new owner of the Hope Diamond, the Star of the East and the lesser lights of Evalyn Walsh McLean's collection: 53-year-old Harry Winston.

Only five feet, four inches tall, with a handsome, boyish face, thick, greying hair, and eyes that normally sparkled with an intense joie de vivre but that could turn in an instant to cold steel, Harry wore a dark, impeccably tailored double-breasted suit and, as always, no jewellery.

At the moment Harry Winston Inc. was grossing about $20-million a year. Harry had interests in South American mines; employed 400 cutters and polishers in New York, Amsterdam, and Puerto Rico; sold diamonds both wholesale and retail, every grade from world famous down to those in Montgomery Ward's $37.50 engagement rings (the latter not connected to his name); would open jewel salons, in 1955 and 1957, in Geneva and Paris; designed and manufactured jewellery for the super-rich. He sold to kings and maharajas, billionaire sheikhs and shipping magnates.

Harry Winston had a "genius" -- that was the word which rested like an invisible crown on his head whenever jewellers and diamantaires talked about him -- a positive genius for publicity. He'd been the very first jeweller to hire a full-time public relations person, Jill Ceraldo. She stood near him now, having just welcomed a group of journalists and photographers to the main salon, an elegant room furnished with antique chairs and tables. The press group hushed as Harry ceremoniously unwrapped the paper parcel and spread its gems out on a large black velvet pad atop a Louis XVI gilded table not unlike those the Hope had reflected at Versailles 160 years before.

The Hope is the world's biggest dark blue diamond. With the exception of red, blue is the rarest of all colours for a diamond. (A diamond may also be green, yellow, pink -- the highly valued hues -- or brown, grey or black.) Most blues are light in colour and less than 2 carats. The Hope, which measures about an inch long, three-quarters of an inch wide and an inch deep, weighs more than 40 carats.

Since its discovery in India, hundreds or perhaps thousands of years ago, the Diamond has followed its owners all over the world. It became "the Blue Diamond of the French Crown" under Louis the XIV. The French Revolution's blood tide swept it to England, where Henry Philip Hope rescued it and adored it. It adorned the Washington hostess Evalyn Walsh McLean (as well as her dog) in the early 20th century, and the Hollywood actress Michelle Pfeiffer laid it on her satin skin during a photo shoot for Life magazine in 1995. But the Hope's malevolent curse is as famous as its beauty. Some of its owners suffered astonishingly bad luck: one died a very slow, horribly painful death; another, quite literally, lost his head; a third lost a young son to a car accident, a daughter to suicide and a husband to an insane asylum.

At Harry Winston Inc., after the last camera flashed, the last notebook closed, and the media departed, the gems were taken up to the third floor, where they were weighed, given numbers, and registered in a loose-leaf notebook. Then they went further aloft, to a huge walk-in safe on the sixth floor. In it the tissue-wrapped Hope was laid to rest among thousands of its kind hiding in waxed-paper pockets inside brown envelopes.

In the late afternoon, after Harry had consumed his usual lunch of tea and graham crackers at his desk, and as the shadows on St. Patrick's Cathedral, beyond his office window, deepened to violet, he picked up the phone on his desk and called his head cutter. "Before you go home," Winston told him, "bring me down my new babies, the Hope and the Star of the East; I want to play with them for a while."

The Hope Diamond has always been a star. Harry Winston would propel it even further into celebrity status. He'd launched his first publicity campaign in 1940, revolutionizing the ad world with full-page spreads in glossy fashion magazines like Vogue, sparked by such original ideas as a close-up of his black cat, Kashmire, furry brow adorned with a pear-shaped diamond above her gleaming eyes. In 1947, he began the ongoing tradition of lending Winston jewels to Hollywood movie stars for the annual Academy Awards ceremony. Now it was time to turn his public relations wizardry on the Hope.

On Wednesday, April 6, all the big-city U.S. newspapers gave the Hope's debut at Harry Winston Inc. many columns of type. The next day, further write-ups and photos appeared. The New York Times showed the former McLean cache laid out like Ali Baba's loot, with the Hope on its necklace around a velvet jeweller's bust, being admired by Jill Ceraldo and another pretty Winston employee. Time magazine compared the size of the Hope to a robin's egg -- although any robin laying an egg that big would have exploded on the spot in a burst of feathers. "Though Winston laughed at the legend that the Hope diamond had brought only trouble and tragedy to its owners and wearers," wrote the Time journalist, "he soon had his press agents grinding out new embellishments of the tale." Of course he did; the curse was as effective a promotion tool as a Hollywood actress; privately, Harry thought it complete nonsense.

Born March 1, 1896, on the third floor of a five-storey walk-up apartment building on New York's West 106th Street, Harry was the third son of Ukrainian immigrants. His father owned a modest retail and repair jewellery store. One day when Harry was 12, he saw in a pawnshop window a green stone in a ring, sitting on a tray below a sign: "Take your pick -- 25 cents." At that moment, the first of a lifetime of jewels enchanted Harry; he entered the shop and bought the green gem. His father was astonished to find, after cleaning it, that he was holding a 2-carat emerald, which he was able to sell for $800. How had Harry known?

For the rest of his life, Harry loved to tell the story of that green stone; as an adult he was a skilled fabulist who mesmerized listeners with tales of famous rulers and screen goddesses and diamonds he had known. "I love the diamond business," enthused Harry. "It's a Cinderella world. It has everything! People! Drama! Romance! Excitement!" Like Jay Gatsby in Fitzgerald's Great Gatsby, Harry Winston possessed "an extraordinary gift for hope, a romantic readiness."

In 1920, Harry struck out on his own, dealing on the Lower East Side, which then contained New York's Diamond District. He hustled among the Hassidic Jews in black coats and hats, who gathered on the sidewalk, holding little folds of paper full of diamonds, looking at them in the preferred light, which was natural, northern, out of direct sun, and best around 11 a.m. Other diamond dealers hurried in and out of buildings where signs painted on windows above proclaimed "Mr. Diamond," "Diamond-Rama," "Futura Diamonds," and where the elevator operator was often a detective. Harry worked in this wholesale market for long hours each day, accurately reading the diamonds he bought at a bargain and sold at a profit, each deal concluded with a handshake and Mazel und Brucha (luck and blessing).

Four years later, Harry opened his own firm, the Premier Diamond Company. He bought up stones set in massive stomachers, tiaras, corsage ornaments and dog collars -- all of them out of fashion. A Prospero figure, he looked into the heart of each diamond and divined its true potential, hiding under some old, imperfect cut and within a cumbersome setting.

By 1932, he was able to move to more luxurious quarters in the British Empire building in the Rockefeller Center, where the Premier Diamond Company became incorporated under the new name Harry Winston Inc.

He bought his first world-famous diamond -- the 726-carat rough Jonker -- in 1935. Diamantaires stayed away from the largest stones; the market for a 50-carater (or bigger) was too small. "If a man thinks big, he'll be big," Harry told his wife, Edna.

"Harry just can't forget about a diamond once he's made up his mind he wants it," Edna sighed. She knew he loved her; she was his confidant, trusted adviser, and model for his jewels; their marriage was a good one. Yet his incurable romanticism focused on his diamonds; he fell in love with one beau idéal at a time, as if each were a mistress, and when passions cooled moved on to the next. He often kept a priceless stone in his pocket, the world's most expensive worry bead and amulet, so he could caress it all day long. He became obsessed with owning all the world's largest, most famous diamonds, and before he was done, one-third of them would have joined him for a brief liaison, or a longer affair

When, on the morning of April 27, 1947, he read Evalyn Walsh McLean's obituary in The New York Times, Harry's spirits rose, Hopeful; they plummeted in early May, when he learned that the McLean jewels were locked away, out of his reach for 20 years, and soared to the stars in jubilation when he finally made them his, almost two years later.

A few minutes after his call to the head cutter on that April afternoon in 1949, the Hope and the Star of India, the two famous stones that had been together for 38 years, sat on the large square of black velvet on Harry's desk. Harry picked up the Hope in its circlet of white diamonds and looked at it through his loupe. "A great diamond should live, it should talk to you," Harry liked to say, and he felt sure that the Hope would be no exception.

"Ah, Harry, darling," he murmured to himself, "what a blue! What a presence!" Twilight sky, mood indigo, a poignant sense of day's ending, life's ending, regrets, losses, missed opportunities ... Why was the Hope making him blue? He put down the loupe and rubbed the stone lightly and slowly, cradled it in his hand, rocked it back and forth in the light, talking to it and to himself by turns. "No two diamonds are alike," he once told a reporter. "Each has a different nature, different problems, and each must be handled as you handle a person." All at once he knew why he was feeling sad rather than euphoric. The Hope had suffered in its cutting after it was burgled from the palace of Louis the XVI in 1792. Man, not nature, had botched it. The world's greatest blue and most fabled diamond was lopsided; one long side of its oval was thinner than the other, so it lacked full symmetry and refraction. Its cut was also a little too shallow for maximum brilliance. If only Harry could recut the Hope -- but that would be sacrilegious, since, as he would soon explain to the press, its historical value was more important "than any minor improvement anyone could make."

Harry Houdini of the diamond trade, Winston the Wizard, who routinely transformed wallflower diamonds into raving beauties, could do nothing for the Hope. He could, however, love it, and he did, with all the passion of his nature. He picked up his loupe again, locked his eye to the Diamond's bigger one. For a long time, Harry and the Hope communed. Finally he laid it very gently down onto its black velvet bed. It would never sing. He was close to tears.

On May 7, 1949, The New Yorker's "On the Town" reporter noted that, thus far, diamonds had brought Winston "nothing but good fortune" and that he'd received two legitimate offers to buy the Hope, and many crackpot ones. "I got a cheque for $5-million in the mail," he boasted, "and one for $3-million, and both parties requested that I ship them the stone." He did plan to sell it privately, he told the journalist, but not before it had been exhibited "throughout the country for the benefit of local charities."

Always the showman, Harry soon marshalled his troupe of beloved gems into a circus act called the Court of Jewels, which would open in New York, tour the country. San Antonio, Texas ... Oklahoma City, Oklahoma ... if it's Tuesday, it must be Chicago, Illinois. In the Diamond's blue depths, the cities melted into one grey, skyscraper blur.

By 1953 the tour had ended, but Harry continued to lend the Hope, for which he hadn't yet found a private buyer, to various charity events for another five years.

Never Harry's best-loved baby, the Diamond sometimes lay quietly in a glass case; often it lay next to the soft, pampered skin of some rich socialite, dancing the night away in a hotel ballroom under sparkling chandeliers.

On Friday, August 8, 1958, the Hope boarded a plane to Toronto, where it was transported to the grounds of the Canadian National Exhibition. The next day, the Ex was opened by Prime Minister John Diefenbaker. For the next 16 days, close to three million people passed through the high-arching gates of the exhibition, many of whom went to see the Hope.

By 1958 Harry Winston Inc. was bigger than it had ever been. "The British royal family owns the world's biggest collection of historic jewels," Life magazine had declared on March 17, 1952. "The second biggest, however, is owned by a U.S. citizen, Harry Winston," who, when he felt the urge, could roll $12-million worth of gems across his desk -- the ultimate cornucopia -- feast his eyes, and gloat.

One afternoon, Harry looked at his appointment book, saw a blissful blank, called up to the sixth floor and asked to have the Hope brought down to him. He wanted the storied blue so he could spend time with it before it moved on to the next chapter in its life. He was going to donate the Hope to the National Gem Collection at the Smithsonian. His secret ambition was to make America's gemstones rival Britain's in the Tower of London. He hoped such a gift would inspire other rich Americans to donate their own magnificent jewels. (He was glad that some silly, vain, spoiled woman hadn't bought the Hope. Harry didn't think much of his female customers; they had "no real feeling" for diamonds, he said, no real reverence. "They'd wear diamonds on their ankles if it was stylish!" he once confided to a journalist.)

On Friday, Nov. 7, 1958, sitting in his office with a brown-paper parcel on his desk, Harry held a press conference, reported in Saturday's newspapers and on page one of The New York Times. "The Diamond," wrote Milton Bracker, "will be sent to Washington by mail today as the gift of Harry Winston Inc." He estimated that while he owned it, the hardworking Hope had covered about 400,000 miles raising money for charity and had "brought him no bad luck." It had instead brought him fame, new clients, and plenty of free publicity.

Yet, if he was really being truthful, he had to admit that the Hope ultimately was one of his failures. First of all, he knew he was the world's best diamond salesman, yet he'd failed to sell it; second, he'd failed -- through no fault of his own -- to do what he loved doing best: to give such a stone perfect fulfillment of its beauty. His recutting of the culet (bottom) facet in 1958 was too minor an improvement to do much. The Diamond had come to him lopsided, with flawed refraction, and thus it would depart.

When the Hope arrived at the Smithsonian, it yielded a closely guarded secret. The museum's mineralogists weighed the blue stone that, since it surfaced in England in 1812, everyone had described as weighing 44 1/4 or 44 1/2 carats. Not at all! The Hope weighed an astonishing 45.52 metric carats. It had managed somehow to conceal that extra carat for all of those years.

Adapted with permission from Hope: Adventures of a Diamond by Marian Fowler, published by Random House Canada, April, 2002.   National Post  6 April 2002

DIAMOND ESSENTIALS


GRADES

Many Chinese say "I do" with diamonds

More couples in increasingly affluent China are opting to say "I do" with a diamond ring, rather than gold or jade jewellery, according to the world's biggest diamond producer De Beers.

China is the fastest growing diamond consumer in the world after India and Asia's second-largest market for the stones.

According to official estimates, wealthy Chinese spent almost $2 billion on diamond jewellery last year, and industry experts expect that figure to rise by as much as 12 percent this year.

De Beers said diamond wedding rings represented 32 percent of all diamond jewellery sales in China.

"The foundation upon which we've developed the current business has been the diamond wedding ring for consumers," Christina Hudson, marketing director for the De Beers Group in Greater China, told Reuters.

"More and more consumers are acquiring diamonds in China. You know when consumers used to ask others 'so did you get a diamond for your wedding?', now they'd ask how big is your diamond."

Traditionally, Chinese grooms who could afford it gave their brides yellow gold or jade jewellery as an engagement present.

China is a lucrative jewellery market, with a booming economy and growing numbers of fashionable, wealthy youth helping to fuel demand.

Diamond sales are mainly driven by young Chinese and got an added boost last year from a reduction in value-added tax on imported stones last year, jewellers say.   -  Reuters 2007.


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