By Jennifer Heebner, Editor in Chief
Unlike many of his peers, Jeremy Hakimi of Colorline, Inc., doesn’t shop auction houses for gems to recut, but he does pay close attention to their sales.
“They’re a key indicator of where prices are at,” he says.
A case in point: When the 55.22 ct. Estrella de Fura Ruby from Mozambique sold last summer for nearly $35 million, it woke people up to just how valuable a colored gemstone can be. These sales bring attention to the region where the gem was mined, educate consumers, and can drive up prices of similar stones. “Maybe you can’t buy a stone like the Estrella, but 3 ct. no-heat Rubies can be found,” he adds.
Big Diamonds and natural colored Diamonds have always done well at auctions, but fine colored gemstones are now commanding hammer prices that are nearly as high. Reasons include the rise of lab-grown Diamonds (and the ensuing price fluctuations of mined and synthetics), inflation, colored stone supply shortages and unstable governments in origin countries, and increased understanding of color. The top 1% of fine color is extremely rare—more rare than Diamonds, which is why even Diamond dealers are getting into the color game.
“You can see different records being set for no-heat gems at auction,” adds Hakimi. “If they keep achieving record high prices, that affects wholesale—demand and what people are willing to buy for.”
Who Bids & Why
Auctions have retail prices, but you’ll still find plenty of gem dealers scouting them out. Dealers are looking for deals, of course, and not the Estrellas, but when new material is hard to get, the old stuff can be a boon.
Carl Larson’s father, Bill, founder of Pala International, Inc., got a deal years ago when he scooped up a large untreated black Opal from Bonhams for five figures. The stone had a harlequin pattern—a rare phenomenon. “It was really cool,” recollects Carl. The duo bought it because Bill thought it had the value of a six-figure sum.
Years later, Carl Larson was he watching an online Bonham’s auction while he was at Legoland with his kids. He saw a 22 ct. blue Zircon offered for $1,800; it was a good price, even under wholesale value. He got into a small bidding war with another anonymous buyer—whom he later learned was a dealer friend of the family—and snapped it up for $2,200.
While he admits that it’s always best to see would-be purchases in person—“You can’t always rely on the photos and descriptions from auction houses,” he says—he has nabbed a lot of good buys. “Do your research,” he urges.
100% Natural, Ltd.’s David Nassi agrees that auctions can be a good source. Nearly 20% of his inventory is acquired from auctions, material he routinely recuts for resale. One memorable acquisition is from 15 years ago, an Emerald spied in the clasp of a necklace. “I bought it and made a pair with another one we had in the office,” he says.
What Does Well at Auction
Gem dealers aren’t only buying at auction—they’re also submitting stones for sale. Oftentimes, they’ll enter stones that are snubbed by picky designers and retailers, who want the best.
Big gems that are showy and cleanish with adequate color do well, as many collectors aren’t as picky; they just want to own something with a recognizable name like Paraíba Tourmaline or Burmese Sapphire. “They’re still beautiful stones that have value, but they fall short with the trade,” explains Larson.
Premium auction houses like Christie’s and Sotheby’s love selling the big gems like Estrella and have the client reach to get exposure and top dollar. Those houses put a lot of effort into promoting those stones, unlike smaller ones, no matter the quality. Larson recalls putting a 1.67 ct. Asscher-cut no heat Burma Ruby in a Tiffany & Co. mounting circa 1910 up for sale in one of the houses, but it was less enthused because it was a smaller sale, and its promotional machine reflected that.
Perhaps the best way for the trade to utilize auction prices is by making comparables. For example, Larson recalls when Christie’s Hong Kong sold a pair of demantoid Garnets (8 ctw.) for a super high sum—$40,000 to $50,000 a carat. Larson acquired a similar pair for wholesale and shared auction pricing with his retailer to help drive the final sale.
“Auctions should not set wholesale prices as they are retail,” he says. “However, they can boost confidence with a stone’s value, to show others that they’re getting a good deal.”
Australian Opals
Auction Takeaways
Overall, the trade strategically uses auctions to their advantage—through purchases or sales. According to Sailesh Lakhi of Sparkles and Colors USA, Inc./Lakhi Gems Group, if dealers are buying for their own inventory, that doesn’t affect anyone else. Auction prices can jack up wholesale prices when consumer bidders don’t understand the real value at hand.
Lakhi recalls some super high prices paid for Colombian Emeralds at Christie’s auctions in 2022 and 2023. In turn, Colombian mining outfits increased their prices, thinking their goods were undervalued. In the end, Lakhi had to raise his prices by 30% based on what it would cost to replenish his Emerald stock.
While auction prices aren’t a perfect reflection of the gemstone market, they are helpful to gauge the top 1%. “It’s really the only public information anybody has on colored stone prices,” says Nassi.
This is proprietary content for AGTA and may not be reproduced.