DIAMONDS AT AUCTION

HIGH-END DIAMOND MARKET SURGES DURING COVID PERIOD, PARTICULARLY AT MAJOR AUCTION HOUSES

The COVID-19 pandemic, which while causing economic havoc over much the world during the past six months, has also had the opposite effect in various sectors, such as the housing market in number of countries, driven in part by families looking to get out of the larger city centers where lockdowns can be oppressive, and into the relative comfort of the suburbs. Another sector that has seen an uptick is high-end diamond jewelry sales, more specifically at auctions. “Trading at the high end of the diamond market is comparable to the high end of the real estate market where prime locations retain their value irrespective of broader market conditions including scarcity of properties and desirability,” says Paul Redmayne, Head of Private Sales, Jewellery at Phillips, as quoted by the Natural Diamond Council, in an extensive article on the subject published on its website, authored by Jill Newman. “[And] from a buyer’s perspective, auctions—the neutral intermediary between global buyers and sellers—are the truest indication of market price.” Redmayne continued, emphasizing that diamond sales at auction offer a transparent view of the value of stones, and the type of stones that are in demand. “Diamonds at this level are considered a free-standing asset class,” Redmayne said.  And having seen the appreciation in such stones over the past 15 years, diamond funds, private individuals and family offices have branched out to include them in their portfolios.” In Redmayne’s opinion, people are increasingly turning to invest in alternative assets like diamonds alongside their “traditional” portfolio.