Why investors are going crazy for coloured stones in 2023: jadeite, pink and blue diamonds are trending at Hong Kong’s Sotheby’s and Phillips autumn auctions, but will the bubble burst?

Blue diamonds of exceptional quality, such as The Infinite Blue, are globally recognised as a highly concentrated form of wealth. The Infinite Blue holds additional appeal for gem collectors in Asia, especially among the Chinese, due to its auspicious carat weight of 11.28. The diamond has also been meticulously designed and cut to include the number 8, which is regarded as a symbol of prosperity in Asia.

LVMH tests the market for lab-grown diamonds in luxury watches and jewellery

Setting aside its striking visual and symbolic allure, The Infinite Blue possesses distinct characteristics of natural fancy coloured diamonds, making it a coveted piece among affluent gem collectors. The Gemological Institute of America (GIA) has given the stone the “fancy vivid blue” colour grading – the highest possible rating, which is bestowed upon fewer than 1 per cent of blue diamonds. Furthermore, the gem exhibits excellent polish and falls under Type IIb, a rare classification representing fewer than 0.5 per cent of all diamonds, according to Sotheby’s.

Coloured diamonds also proved to be a major draw at Sotheby’s Magnificent Jewels I live auction. A striking diamond necklace, featuring a contemporary design and a pendant suspending a remarkable fancy vivid yellow diamond weighing 74.48 carats, was sold for HK$19.8 million (US$2.5 million). The yellow diamond, internally flawless and of a cushion modified brilliant cut, was particularly noteworthy.

At Poly Auction Hong Kong’s Magnificent Jewels sale, the stand-out item was a rectangular diamond. Weighing 25.88 carats, it boasted a fancy vivid yellow hue and VVS1 clarity. The diamond, which was excellently polished and free of fluorescence, fetched a price of HK$10.3 million (US$1.3 million).

Auction house Phillips has expressed its belief that market demand for rare and important coloured diamonds remains robust, as evidenced by its own October sale in Hong Kong. The auction’s top lots were designs featuring coloured diamonds, including a 1.63-carat fancy intense blue diamond ring that sold for HK$7.4 million (US$949,000); a pair of earrings, respectively with a 9.69- and 9.71-carat fancy intense yellow diamond, which went for HK$4.2 million (US$538,000); and a 5.41-carat fancy orangey-pink diamond ring that fetched HK$3.3 million (US$423,000).

Heads up: how hair jewellery took the spotlight thanks to A-list fans

In addition to extraordinary diamonds in a variety of vibrant colours, top-grade jadeite pieces have been the subject of intense bidding and have fetched high prices. The resilience of Asia’s high-end jewellery market is further evidenced by the HK$31.9 million (US$4.1 million) hammer price achieved by The Jadeite Tianchi.

Offered by Sotheby’s Hong Kong at a stand-alone, single lot sale, The Jadeite Tianchi is a jadeite and diamond demi-parure featuring eight “imperial green” jadeite cabochons of exceptional quality. The six cabochons set in the necklace each measure approximately 28mm at their longest point, while the two cabochons mounted on the earrings measure up to 22.2mm.

Sotheby’s notes that it is quality that sets The Jadeite Tianchi apart. The impressive size of the cabochons, their matching colour intensity and saturation, and the texture of the jadeite stones allow the light to penetrate, revealing a captivating glow from within that gives them a sense of depth and vitality.

At Sotheby’s Magnificent Jewels I, an Imperial Blossom jadeite and diamond parure fetched HK$20.4 million (US$2.6 million). This lavish set includes a necklace adorned with 12 highly translucent oval jadeite cabochons of intense emerald-green colour, highlighted with oval diamonds. A pair of earrings and a ring, set with three oval jadeite cabochons of the same quality, complete the set. The 15 cabochons weigh a total of 180.2 carats.

The second most expensive lot at Poly Auction was a ring featuring a top-grade jadeite cabochon, measuring approximately 24.16mm across. It sold for HK$9.4 million (US$1.2 million).

The live auction season is set to conclude in Hong Kong with Christie’s own Magnificent Jewels sale, scheduled for late November. A rare diamond, The Pink Supreme, will take centre stage. This 15.48-carat, fancy intense pink, internally flawless Type IIa diamond is mounted on a ring and has an estimate of HK$70 million to HK$100 million (US$9 million to US$12.8 million). Christie’s states that the sensational “fancy intense” hue of The Pink Supreme is a distinction accorded to only a fraction of pink diamonds the GIA grades. Furthermore, its Type IIa classification is found in fewer than 2 per cent of gem-quality diamonds.

4 contemporary jewellers pumping fresh blood into heart motifs

Christie’s has announced that it will showcase a remarkable selection of coloured diamonds – from pink to blue to yellow – featuring a spectrum of intensities. Among the star lots is an 88.08-carat fancy intense yellow, internally flawless diamond with a white diamond bracelet. The bracelet’s diamonds are all of D colour (meaning they’re completely colourless and transparent) and internally flawless clarity grade. The piece is expected to fetch between HK$12 million and HK$18 million (US$1.5 million to US$2.3 million).

This year is set to be the final one in which major auction houses will stage their large-scale, biannual live auctions and previews at the Hong Kong Convention and Exhibition Centre. A shift in business model is anticipated for 2024, with auction houses potentially conducting year-round auctions, each with a unique theme, at their own locations. Both Sotheby’s and Christie’s in Hong Kong have secured expansive spaces in Central for offices and showrooms. Meanwhile, Phillips has established its headquarters, spanning over 52,000 square feet, at the West Kowloon Cultural District.