The Mellon Blue diamond (a legendary 9.5ct blue gem) sold for $25.58 million this week at Christie’s Magnificent Jewels auction in Geneva. The sale highlights the ongoing popularity of unique and historically significant gems, while also showing some impact from the current state of the global economy. In terms of pricing, the sale price ($25.58 million) fell between Christie’s estimated value of $19 million to $32 million; however, the sale price was approximately 20 percent less than the $32.59 million the Mellon Blue diamond sold for in 2014.
The historical provenance of the Mellon Blue diamond is an important factor contributing to its attraction. The gemstone originally belonged to Rachel “Bunny” Lambert Mellon, an American horticulturist, philanthropist and art collector. One of Bunny Mellon’s most well-known contributions to U.S. history is the creation of the White House Rose Garden, which she designed for her good friend, the First Lady Jacqueline Kennedy. As such, there are layers of national significance associated with the Mellon Blue diamond in addition to its inherent beauty.
Photo courtesy of Martial Trezzini/Keystone via AP.
Market Conditions
Christie’s President of Asia Pacific Rahul Kadakia described the sale of the Mellon Blue diamond as evidence of the top-tier demand among collectors for exceptional, storied gemstones. However, market observers suggested that the sale reflected a number of underlying issues in the market. For example, Tobias Kormind, managing director of 77 Diamonds, stated that the decline in price relative to the 2014 sale was heavily influenced by the general mood in the markets, and cited geopolitical concerns as well as a slowdown in China’s economy, stating that the auction environment was cautious.
The Mellon Blue diamond sold as a pendant in 2014 was sold in Geneva this week as a custom ring with a diamond, surrounded by a swirling platinum band and single-cut diamonds. The sale price translates into a very impressive $2.7 million per carat. Although the Mellon Blue diamond did not break its record price when it was sold this week, the sale was historic in that it placed it as the third-highest priced vivid-blue diamond ever sold through Christie’s. The highest-priced vivid-blue diamond ever sold at Christie’s was the 14.62ct Oppenheimer Blue at $57.51 million. The second-highest priced vivid-blue diamond sold at Christie’s was the 17.61ct Bleu Royal at $39.5 million.
Photo courtesy of Martial Trezzini/Keystone via AP.
Other Auction Highlights and the “Rainbow Collection”
As part of the Magnificent Jewels auction, the Mellon Blue diamond was one of the stars of the show that generated a total of $75.61 million, with 94% of the lots selling. More broadly, Christie’s live auctions during Geneva Luxury Week across jewelry, watches and handbags generated a total of $102.5 million, up 24% from last year. Other significant items sold during the Magnificent Jewels auction included a JAR-designed colored diamond and sapphire ring that sold for $3.1 million, and a late-19th-century ruby and diamond star brooch that sold for $2.8 million.
Of particular interest were the “Rainbow Collection,” an assembly of more than 300 unmounted colored diamonds that sold for $2.2 million. The Rainbow Collection was launched by Eddy Elzas, the late diamond collector and expert who started collecting the colored diamonds in the 1970s. Mr. Elza’s passion for color diamonds led him to be a skilled diamond cleaver, and he was widely recognized for his expertise in finding the rarest colors. Additionally, Mr. Elza taught courses on colored diamonds at the Gemological Institute of America. The “Rainbow Collection” has been exhibited in 45 museums around the world in 30 cities, so the collection was known to many in the gemological world prior to coming to auction.
Overall, the sale of the Mellon Blue diamond provides a clear image of a high-end market that remains strong, albeit cautious due to current macroeconomic factors. Collectors will always pay a premium for high-quality and historically interesting gemstones, but the amount they will pay may fluctuate based upon their confidence in the broader economy.
