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forever

fell on the recent war


Diamonds are

When the media spotlight

crimes’ trial of Liberia’s


B
“ lood”, “conflict”, “war”, “hot”
or “converted” diamonds are
those used to finance war
and conflict. Angola, Ivory Coast,
diamond industry was to regulate
itself. These include, among others,
only trading with counterparties that
provide KPCS declarations on their
The Democratic Republic of Congo paperwork; not buying diamonds from
former president Charles (formerly Zaire), The Republic of Congo suspect sources and not assisting in
Taylor it illuminated (Congo Brazzaville), Sierra Leone and buying or selling diamonds from such
Zimbabwe are all countries that have sources. But while the KPCS has been
ethical concerns over the been reported to be sources of such largely successful, with the exception of
origin of diamonds. Has it stones. Until 2003 when the Kimberley two Canadian brands, Polar Bear and
Process Certification Scheme (KPCS) CanadaMark, which carry a minute laser
made their sparkle much was introduced under United Nations engraved serial number, the origins of
less attractive? General Resolution 55/56, there was diamonds cannot be proved.
no system to assure buyers of rough
By Richard Willsher diamonds that they did not originate What of those which came to market
from war zones. before 2003? And how ethical do
we want to be? People who dig for
The KPCS set out a series of warranties precious stones, gold and many other
for consignments of stones and commodities, including oil are often
established principles by which the in remote, lawless regions of the

92 market
the market
the 27
Rare pink diamond
Right: Signature Raindance expected to attract
ring - this has gone into the V&A
permanent jewellery collection
record price at Christie’s
By Michele Martensen
as an example of leading British
returns. A visit to www.ajediam.com is essential
contemporary jewellery design.
however to grasp the detail and very strict Below: Raindance celebratory An extremely rare 14.23-carat “fancy intense pink”
definitions of the diamonds which fall within collection (to celebrate 10 years diamond (pictured) is to be auctioned at Christie’s in Hong
their price trend graph. of Raindance) coloured bracelet Kong on 29 November 2010.
(aquamarines, star sapphires, mint
Four Cs green tourmalines and diamonds). With a pre-sale estimate of $14-$19 million, the aptly-
Buying cut diamonds boils downs to “four Cs”. Both created by Boodles. named “Perfect Pink” is said to be a “paragon of
The “cut” or quality of craftsmanship used to perfection” in terms of colour, clarity and cut.
shape the stone. The colour. White diamonds
are most common but as Jason-Paul Hirsh Fancy intense pink diamonds are both naturally and
of London jewellers Hirsh points out, other commercially very rare. Only 18 diamonds over 10 carats
natural colours such as pink, blue and yellow showing a distinct pure pink colour have ever appeared
for sale at auction.
are rarer and can be extremely valuable.
Of these, all exhibited a lighter shade and saturation than the
Clarity is the third C and refers to whether intense pink seen in the Perfect Pink, according to Christie’s.
there are blemishes within the stone. Fourth is
carat, the weight of the stone. One carat equals Gem connoisseurs have long considered pink diamonds
0.2 grammes. While it is generally true that to be among the most beautiful of gemstones since they
the bigger the stone the higher the price, there were first discovered in the ancient mines of India.
are certain key price points. A one-carat stone
is likely to cost significantly more than one Fewer than 10% of pink diamonds weigh more than 0.20
weighing fractionally less than one-carat. carats. Larger varieties rarely come up for auction. According
to Christie’s, large polished pink diamonds of this description
are “virtually unheard of”.
Hirsh goes on to say that diamonds are
world. If human rights, health and safety, the not like any other commodity; the market
While most pink diamonds exhibit a colour modifier such
environment and local political regimes are has characteristics that do not commend it as purple, orange or grey, the Perfect Pink is said to show
issues we care about, then we would need to for investment. “There is a massive stock David Rhode points out that the greatest absolutely no trace of a secondary colour.
examine our conscience before engaging with of diamonds that is not being released. In investment returns are likely to come from
any of these substances, that are woven into the other words it is being held to keep the diamonds that form part of highly collectable In addition, says Christie’s, the classic rectangular shape – a
fabric of most lifestyles across the globe. price inflated.” The control of the market is pieces of jewellery. Such pieces might be cut generally reserved for white diamonds – suggests no
largely in the hands of the Diamond Trading from a well-known designer such as Cartier additional facets were required to intensify its tone.
Investment Corporation, formerly De Beers, which has and may have been owned by celebrities in
Diamonds remain objects of desire and perhaps agreements in place with producer countries the past. Such jewellery fetches high prices At the end of 2009, Christie’s Hong Kong set a world auction
also worthwhile investments. As Michael such as Russia, Canada and Australia. “The at auction. record when it sold a cushion-cut “fancy vivid” pink five-carat
diamond for $10.7 million – around $2.15 million per carat.
Wainwright one of the latest generation of second reason is that diamonds have been
the family that owns Boodles, the 200 year- artificially made since the 1960s and the Investing in diamonds is highly subjective and
It became both the highest per-carat price ever paid for any
old London based jeweller puts it, “Items of manufacturers are getting better at it. This requires a lot of background knowledge and diamond or gemstone as well as the highest price paid for a
diamond set jewellery are beautiful things to will also have an effect on the market that no good advice. Diamonds do not pay interest pink diamond.
own and wear and may turn out to be not a bad one can really predict.” He adds however, that and need to be securely stored and insured,
investment.” He adds that no rate of return can those rarer pink and other natural coloured both of which cost money. But they can be The Perfect Pink will be on view in Geneva, Taipei and Hong
be placed upon such “investments” though the diamonds can produce good investment passed from generation to generation and Kong prior to the sale.
better the colour and the quality the better they returns as supply cannot meet demand. they are also easily transported. This explains
fare. That is consistent with other collectable Until 2003 there why refugees have often taken their stones Perfect Pink Advance Previews
investments such as art, wine and furniture. was no system to The investor still needs to square his or her and jewellery with them and left their more Geneva: 14-16 November, Four Seasons, Hotel des
assure buyers of ethical concerns. A jeweller with a specialist, cumbersome possessions behind. Diamonds Bergues. Taipei: 20-21 November, Fubon Life Assurance
Building. Hong Kong: 25-29 November, Hong Kong
There is evidence, published by Antwerp rough diamonds ethical approach is Ingle & Rhode, based have many appealing features and are an
Convention & Exhibition Centre
diamond dealers Ajediam that over a period of that they did not in London’s West End. This firm uses fair asset class that many treasure, despite
50 years the price of wholesale diamonds has originate from trade gold and buys its diamonds direct from the uncertainty of their origin and of the For more information, visit www.christies.com
consistently risen and produced quite reasonable war zones producers rather than through wholesalers. investment returns they may produce. m

28 market
the market
the 29

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