Gems Log

One of the rarest gems in the world, a flawless blue diamond, has sold for US$7.98 million at a Sotheby’s auction in Hong Kong, making it the most expensive gemstone in the world, per carat, sold at auction.

After intense bidding, the 6.04 carat, internally flawless blue diamond fetched $HK61.9 million, or US$1.32 million per carat. The price smashed a 20-year-old record held by the “Hancock Red” — a red diamond, which fetched US$926,000 per carat at the time, Sotheby’s said.

Sotheby’s said the buyer was “Moussaieff Jewellers” in London which has a reputation for acquiring extremely rare and costly gemstones. The seller was a private Asian collector.

Blue diamonds have long captivated the rich and powerful — shimmering with a certain dark mystique. The famous “Hope Diamond”, a 45.52 carat grey-blue beauty, was passed down through the ages by King Louis XIV of France, Marie Antoinette and American heiress Evalyn Walsh McClean among others. It now rests in the Smithsonian Institute in Washington D.C.

The Sultan of Brunei reportedly bought another massive “blue” which surfaced briefly in the 1980s.

While not a large stone, the Sotheby’s diamond has an esteemed cut and “fancy vivid blue” hue, factors which contributed to its blockbuster price — roughly 10 times the per-carat price of regular white diamonds.

The blue hue is a result of trace amounts of boron in the stone’s crystal structure.

Other colored diamonds with pink and red hues can be mined in multiple locations across the globe including Brazil, India and Australia, but “blues” are mostly found at just one site on earth — the Premier Mine in South Africa.

Rare blue diamond breaks auction world record

A rare flawless blue diamond broke the 20-year per-carat record for a gemstone at an auction on Monday in Hong Kong, Sotheby’s auction house said in a release.

The 6.04-carat emerald-cut diamond sold for $7.87 million, or $1.3 million per carat, after eight minutes of intense bidding among seven interested buyers.

The previous record was held by a 0.9 carat red diamond, known as the Hancock Red, sold in New York in 1987 for $912,832 per carat, or a total of $867,580.

Reuters reported the buyer was Moussaieff Jewellers in London, which has a reputation for acquiring extremely rare and costly gemstones. The seller was a private Asian collector.

The vivid blue shade of the diamond is caused by trace amounts of boron in the crystal.

Other coloured diamonds, such as the pink and red hues, can be mined in several countries, including Brazil, India and Australia, but the blue shade is mostly found at South Africa’s Premier Mine.

3i, a leading global private equity and venture capital firm, today announces a US$30m minority investment supporting existing management in the buyout of Hong Kong based John Hardy Group (“John Hardy”), a leading designer, manufacturer and distributor of high-end designer jewellery and lifestyle accessories.

Founded in 1989 by John Hardy, the eponymous group is now recognised as the second largest designer jewellery brand in its main market, the US. Its products are currently sold in all the major department stores including Neiman Marcus, Saks Fifth Avenue and Bloomingdales. After eighteen years in the business, the founders are seeking to retire and have agreed to sell the firm to company chief executive officer Damien Dernoncourt and creative director Guy Bedarida.

3i’s involvement will enable the John Hardy Group to continue its transition from a family run business to a professionally managed company, leveraging the brand that the founders have built and taking it forward to consolidate its position in the fast growing US designer jewellery market. The firm also plans to introduce new collections and increase its sales in the Middle East, Russia and Japan, where the brand already has a growing presence.

John Hardy products are hand crafted and made primarily of gold, silver and semi-precious stones. Reflecting the multi-cultural nature of Balinese society, they are renowned for their superior design and strong appeal to fashion focused, environmentally conscious consumers of luxury brands. Additionally John Hardy recently won two Town & Country jewellery industry awards for “Best Silver Jewellery Line” and “Best Public Relations Company”, reflecting its resounding influence in the market.

Following the retirement of the founders, Damien Dernoncourt will continue to lead the company as CEO. Since joining John Hardy in 2003, initially as CFO Asia, Damien has been integral to the restructuring of the Group in the last 3 years, establishing the company’s strong market presence and team. Having previously run his own businesses, Damien’s experience has proven instrumental to the professionalisation of the family business.

Having led the design team since 1999, Guy Bedarida will work closely alongside Damien. Guy has over twenty years of experience in the jewellery business both with the House of Van Cleef and Arpels and Boucheron. His input remains key to the success of the John Hardy brand.

Thaddeus Beczak, introduced by 3i, joins as Chairman of John Hardy, bringing impressive financial experience from his role as chairman of Nomura Asia Holdings and former positions as Deputy Chairman of South China Morning Post (Holdings) Limited, Executive Director of Kerry Holdings, Director of Shangri-La Asia Limited and Kerry Properties Limited and elected Chairman of the Stock Exchange of Hong Kong Listing Committee in 1997. Additionally, John Hardy will benefit from a highly respected advisory board comprising industry figures from Star Group, Hermes and Pure Creative.

Damien Dernoncourt, John Hardy Group CEO, today says of the transaction: “This is a fantastic opportunity for the John Hardy Group to expand the business and further strengthen its expertise and reputation. I am confident that 3i’s renowned global network and extensive experience in helping businesses to grow will enable us to achieve our full potential.”

3i Director Anna Cheung adds: “I am delighted to be working alongside such an outstanding team. The John Hardy Group has a sound reputation for its stylish and unique designs and its environmentally conscious ethos. Having backed consumer brands including Gant, PCD Stores and Hobbs and worked with family businesses such as Dirickx, Senoble and Williams Lea, we look forward to helping the John Hardy Group build on its strong foundations to grow its brand and product range.”