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Pricing 50 Carat Pink


marineldiamond
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I recently did a diamond grading course, during one of the break times one of the experienced graders was saying she has little experience pricing a colored stone. She related how a special customer asked her to price a 50 Carat Pink. Does anyone know where we can find reference to pricing colored stones. The fashion for them is gaining popularity so who would be the authority to turn to for tables?

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Hi Marine.

Your question is a very good one!

 

The fact is, the prices of Fancy Colored Diamonds are harder to plot than colorless.

The rarer the color or stone, the more difficult it is to plot, or put on a table.

Certain differences in diamonds of the same GIA grade will account for huge differences in price- again even more so in rare Fancy Colored Diamonds, such as Vivid colors- or any pink diamond.

 

A 50 carat pink diamond?

 

What's the specific grade, what's the cut, the clarity.

ANY 50 carat diamond is going to be noteworthy- if it's Gem quality, the price could easily be over $20k per carat.

If it was pink it could be $200k.

 

 

When it comes to diamonds we see more often- such as Fancy Light Yellow- we can make more solid price assumptions,

Not on a 50 carat pink though......

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Marine,

 

I think David's numbers might be conservative. We recently sold a 12+ ct fancy intense pink for over $400,000 per carat. If this is truly a 50 ct stone we are talking about, there really is no price to base yourself on. There are no tables. When we were pricing ours, we did research going back 15 years on all 10ct+ fancy intense pinks we could find through the auction houses and then some. A stone like that will probably always find a buyer.

 

Is the stone natural? How intense is the color? Is it graded by the GIA? What shape is it? These are important in trying to figure out what this stone might be worth.

 

I look forward to hearing more about this gem.

 

George

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Sensible pricing for unique items like this involves using comparable actual sales combined with a survey actual offers for sale. There is no list that you can look it up on. Like George, I would start by looking at major auctions results but I have my doubts that you’ll find much. Watch out for Internet research where you find a listing somewhere with a description and a stone supposedly for sale. Internet shopping carts is NOT the way items like this change hands.

 

Don’t confuse diamond grading with appraising. They are completely different things.

 

Incidentally, I'm at a big gem show in Tucson at the moment and yesterday I saw a 7 carat VVS synthetic pink. It was absoultely beautiful. It wasn't for sale but even that would have been extremely expensive if it were available.

 

Neil

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I agree that large pink diamonds are virtually priceless.

If it's a newly cut stone, the cost of the rough will play a large role in determing the price of the diamond.

When considering important diamonds, newly polished diamonds "establish" the price of that particualr article.

Today, new diamonds coming off the wheel are a record high prices- due to the cost of rough.

This in spite of any advances in "home made" diamonds.

 

George,

Congrats on that sale!

I'd love to see a photo of the stone!

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  • 5 months later...

I have a friend who wants to sell a 50.66 ct, internally flawless, slightly pink, emerald cut diamond with GIA certificate. Can anyone please assist us with a valuation and possible asking price. I also want to sell a 6,5 ct, flawless, vivid yellow with olive green undertone in a brilliant cut and need a price for that too.

 

Albert

 

Hi Marine.

Your question is a very good one!

 

The fact is, the prices of Fancy Colored Diamonds are harder to plot than colorless.

The rarer the color or stone, the more difficult it is to plot, or put on a table.

Certain differences in diamonds of the same GIA grade will account for huge differences in price- again even more so in rare Fancy Colored Diamonds, such as Vivid colors- or any pink diamond.

 

A 50 carat pink diamond?

 

What's the specific grade, what's the cut, the clarity.

ANY 50 carat diamond is going to be noteworthy- if it's Gem quality, the price could easily be over $20k per carat.

If it was pink it could be $200k.

 

 

When it comes to diamonds we see more often- such as Fancy Light Yellow- we can make more solid price assumptions,

Not on a 50 carat pink though......

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Albert,

 

This is not exactly an easy thing to move quickly. Sotheby’s (www.sotheby.com) has auctions a few times per year that include items like that and I would consider them as a likely sales venue.

 

A lot of people have been trying to sell that particular stone online for the last few years for about $35M and don’t seem to have been getting much luck with it. I’m not surprised. They seem to be putting a lot of confidence in an unidentified appraiser who recommended that the owner get $60M in insurance. I would be very surprised if any insurer would agree to a policy where this would be paid in the case of a loss but an appraiser can say whatever they want and a prospective insurer is free to ignore or use their advice as they see fit. This has little or nothing to do with what a stone might be sold for. Taken out of context, appraisal values are meaningless even if it were useful for the purpose for which it was intended.

 

The sellers also seem to be eager to talk about the clarity and not the color, which is curious about a stone where the sellers seem to promote the color as the primary value characteristic in the headlines. I would not take this to be a good sign.

 

Here’s an example of an ad for it from 2005.

http://www.bradynet.com/bbs/safrica/100053-0.html

 

What can you tell us about it? Can you post a copy of the GIA? Have you seen it?

 

Here's supposedly a photo of it.

50%20Ct.jpg

 

Neil

Edited by denverappraiser
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Great Catch Neil!

Also astute observations about the appraised value, and the lack of clarification on the color.

We have had experience with pink diamonds that were very faint- a very costly education.

 

Sometimes GIA calls a diamond "Faint Pink" yet the color comes thru beautifully in a ring.

Other times they might call it Light Pink, or Faint Pink and it shows virtually no color when set.

 

Since the price is largely based on GIA's grade, this can mean an very expensive "pink" diamond- a pink diamond no viewer will know is pink unless you tell them. Who's going to actually buy something like that?

 

If the stone Neil linked to is the same one including the photo, it also is illustrative.

 

To my eye, this is a half finished diamond.

For one thing, the faceting is incomplete. The two large triangles ( one at each end) show a stone part way done to my eye.

The photo sows a really badly cut stone.

This would seem to jibe with the ad Niel posted which translates into an 84.6% depth for the diamond.

Put these two things together and it really looks to me as though the cutter wanted to keep 50 carats- surely if the stone was properly faceted it would loose a few carats.

 

Of course this is all speculation but hey...what's a forum for?

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We sold our 1.84ct natural blue/green oval this year for around $400k to $500k / ct.. It took 5 years to find the right buyer for it.. Dealing in these fancy and unique stones is thrilling but doesn't seem to be a good use of our money since it sits for so long :P

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I have a friend who wants to sell a 50.66 ct, internally flawless, slightly pink, emerald cut diamond with GIA certificate. Can anyone please assist us with a valuation and possible asking price. I also want to sell a 6,5 ct, flawless, vivid yellow with olive green undertone in a brilliant cut and need a price for that too.

 

Albert

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Albert,

If the 50 carat diamond your friend is trying to sell is the very same one Neil has posted a link to, I think you will havea very hard time selling other than to a diamond cutter.

If that's the case, the price is going to be a tiny fraction of what a well cut, obviously pink 50 carat emerald cut might bring.

 

In terms of the vivid yellow- is there is GIA report?

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Thank you for your valued opinions Niel and Lauren.

 

I think we are definitely talking about the same stone here and I will post "my photo" here later today. I will also mail you the GIA.

 

I think the gem has changed hands since 2005 and the current asking price is in the region of $25M.

 

Will keep you guys up to date.

 

Albert,

 

This is not exactly an easy thing to move quickly. Sotheby’s (www.sotheby.com) has auctions a few times per year that include items like that and I would consider them as a likely sales venue.

 

A lot of people have been trying to sell that particular stone online for the last few years for about $35M and don’t seem to have been getting much luck with it. I’m not surprised. They seem to be putting a lot of confidence in an unidentified appraiser who recommended that the owner get $60M in insurance. I would be very surprised if any insurer would agree to a policy where this would be paid in the case of a loss but an appraiser can say whatever they want and a prospective insurer is free to ignore or use their advice as they see fit. This has little or nothing to do with what a stone might be sold for. Taken out of context, appraisal values are meaningless even if it were useful for the purpose for which it was intended.

 

The sellers also seem to be eager to talk about the clarity and not the color, which is curious about a stone where the sellers seem to promote the color as the primary value characteristic in the headlines. I would not take this to be a good sign.

 

Here’s an example of an ad for it from 2005.

http://www.bradynet.com/bbs/safrica/100053-0.html

 

What can you tell us about it? Can you post a copy of the GIA? Have you seen it?

 

Here's supposedly a photo of it.

50%20Ct.jpg

 

Neil

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David, maybe you can answer this ---- What is a borderline light pink color graded as, if not light or faint pink? For example something very very light pink. Is it a D color since it would have no other hues of color? Or is anything with the smallest hint of natural pink in it, even if barely noticeable, always called faint or light pink by GIA?

Edited by Adylon
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6,5ct Yellow

 

Lauren, the 6,5 has only been cut recently and is not yet certified. I saw the stone today and I am almost certain that it will not be classed as "vivid yellow". It is a lighter yellow with definite green undertones and also a bit of grey, but still a fancy diamond. The seller wants to sell it "as is" for $100 000-00. He is very confident that once certified it will fetch much more on the open market.

 

Albert

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Here Is the GIA as promised. I can't find any reference to this diamond before 2005. As I am not in the trade myself, is there any way that one can tell from the GIA when the certificate was issued?

 

Albert

 

It's a little hard to tell in the scan but there's a date at the top of the lefthand column. it looks like May 2, 2003 to me.

 

Neil

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Niel, it looks as if it is exactly the same photo, yours is just a cropped version. The diamond was viewed by potential buyers in Switzerland on Friday and we should know by tomorrow if a deal will be conculuded. What do you think of the $25M pricetag Lauren?

 

Thanks.

 

How exciting! Let us know how it goes. Are you part of the sale in Switzerland?

 

BTW, the guy from diamondsbylauren is named David.

 

Neil

Edited by denverappraiser
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6,5ct Yellow

 

Lauren, the 6,5 has only been cut recently and is not yet certified. I saw the stone today and I am almost certain that it will not be classed as "vivid yellow". It is a lighter yellow with definite green undertones and also a bit of grey, but still a fancy diamond. The seller wants to sell it "as is" for $100 000-00. He is very confident that once certified it will fetch much more on the open market.

 

Albert

 

Albert,

 

This is another one of those curious red flags. Depending on where he is located, ‘certification’ on a 6.5ct stone is going to cost him $500 to maybe $2000 depending on exactly what service is ordered, what lab is used and what shipping is involved and it’s absolutely essential in selling it because of the origin of color concerns that will be brought up by any serious buyer. Add to this the fact that the difference between ‘fancy yellow’ and ‘intense yellow’ on a GIA document would drive up the price of that stone dramatically and it simply doesn’t make any sense for the cutter not to immediately have it graded. On big stones like this they’re even fairly fast about it. Since all cutters of stones of this caliber are aware of all of this, the question that remains is what happened to the lab report and why are they trying to sell the stone without it?

 

Neil

Edited by denverappraiser
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Hi Everyone,

Yes as Neil said, I'm, David- thank you Neil.

 

25 million price tag? Well, PLEASE send the person willing to pay that amount to us!!!!!

I suppose if someone was totally ignorant of the market, and had $25 million burning a hole in their pocket, this is a great way to spend it.

 

As far as the value of an 85% depth Emerald Cut with so little color it's impossible to see it's actually pink?

I'd be surprised to see it go for $60,000 per carat- 25 million puts it at $493,000 per carat.

Hey, stranger things have happened!

 

With regards to a 6 carat, $100,000 diamond....

There are many 6 carat diamonds which may bring $100,000 on the market.

However, any dealer will need to pay far less than market if they are going to buy a stone like that "Pre-GIA"

A difference of one shade could easily be $20,000.

A dealer putting the money out for such a stone, sans GIA needs to anticipate ( and pay) for a worst case scenario.....

To give you a basis for comparison: We recently offered this 6.87ct Fancy Yellow on our site for $68,700

687g.JPG

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David, maybe you can answer this ---- What is a borderline light pink color graded as, if not light or faint pink? For example something very very light pink. Is it a D color since it would have no other hues of color? Or is anything with the smallest hint of natural pink in it, even if barely noticeable, always called faint or light pink by GIA?

 

If there's any pink at all, GIA will call it Very light Pink. At that point, it's hypothetically worth more than a D- which might be why GIA does not treat yellow the same way, for example.

 

I say hypothetically because the topic of this thread would be worth far more as a D ( in my opinion based on the photo)

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I tried to "color correct" that pic based on the fact the background is slightly brownish-yellow in hue, and the diamond is very slightly reddish-pink in hue. This is what I would expect it to look more like if bombarded with lots of light and the background was more white... you can see the pink a bit more. It's very hard to see in the photo supplied, probably also very hard to see in everyday lighting as well.

post-112762-1185235819_thumb.jpg

Edited by Adylon
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