This article first appeared in the JNA March/April 2024 issue.

The jewellery auction sector continued to display vigour and vitality in 2023, notwithstanding headwinds in the economic and geopolitical front. Auction results were also indicative of a maturing market – one that increasingly values quality and rarity and would pay a premium for items that meet such criteria.

Case in point are fancy colour diamonds, top-of-the-line coloured gemstones and signed jewels that ruled the global auction scene last year. Some of those coveted stones made auction history with record-breaking performances.

Empowering the market is an unwavering demand for luxury gems and jewellery from affluent clients, connoisseurs and novice buyers alike. Meanwhile, enhanced engagement through hybrid events is also key to attracting a more diverse pool of buyers, including young collectors.

Glittering trends

The market’s encouraging display of strength and resilience fuelled growth in the auction sector in 2023, according to Vickie Sek, deputy chairman, Asia Pacific, and chairman of Jewellery, Asia Pacific at Christie’s.

Collectors from the Asia Pacific region were among the most active at Christie’s international jewellery sales last year, registering a phenomenal 62 per cent increase in spend in 2023 from 2022. Christie’s salerooms in Asia Pacific alone achieved an annual sale of more than HK$1.1 billion (around US$142 million).

It was also at a Christie’s event where last year’s most prized jewellery was sold for a whopping US$44 million – a 17.61-carat, fancy vivid blue, internally flawless diamond named The Bleu Royal. It is now renowned as the most expensive jewel sold at auction in 2023.

Christie’s Asia Pacific also offered other highly favoured fancy colour diamonds at auction: The Pink Supreme, a 15.48-carat fancy intense pink internally flawless type IIA diamond, which raked in HK$83.87 million (about US$10.81 million) in Hong Kong; and a 25.13-carat fancy vivid yellow diamond ring by Bulgari, which achieved RMB20.26 million (approximately US$2.8 million) in Shanghai.

“Jewellery collectors continue to respond to quality and rarity – they are purchasing pieces that are not only exquisite to wear but are also becoming increasingly difficult to acquire in the market,” explained Sek.

The appeal of collecting auction pieces is similarly gaining steam among the younger generation. According to Regine Ngan, head of jewellery department at Sotheby’s Asia, the auction house saw a record 15 per cent rise in client participation at its luxury sales compared to 2022, with young collectors demonstrating keen interest in auction events. Ngan said the number of buyers under the age of 40 has risen by more than 15 per cent year on year.

Fancy colour diamonds were likewise superstars at Sotheby’s. Topping its most expensive lots in Asia was The Infinite Blue, an 11.28-carat radiant-cut fancy vivid blue diamond, which sold for HK$198.2 million (around US$25.3 million) in Hong Kong.

Another blue diamond, which generated US$25 million at Sotheby’s Geneva, made it to the list: The 11.16-carat Bulgari Laguna Blu fancy vivid blue diamond, now known as the largest and most valuable Bulgari jewellery to sell at auction. The Eternal Pink diamond, meanwhile, earned US$34.8 million or US$3.3 million per carat at Sotheby’s New York.

Not to be outshined were high-quality coloured gemstones, led by the extraordinary Estrela de Fura 55.22 – a 55.22-carat Mozambique ruby, which was snapped up for US$34.8 million or US$630,288 per carat at Sotheby’s New York. Jadeite also remains a popular choice, noted Ngan.

“The rarity of these stones makes them special and extremely sought after by collectors,” she remarked. “In terms of colours, clarity and carat weight, these stones are hard to come by. For example, the Infinite Blue’s colour is so spectacular it has been graded ‘fancy vivid blue’ by the Gemological Institute of America (GIA) – the highest possible colour grading awarded to no more than 1 per cent of blue diamonds submitted to GIA.”

Luxury sales

Today’s consumers are increasingly demanding a dazzling combination of brilliance and exceptionality in their jewellery purchases, said Bonhams Global Director of Jewellery Jean Ghika, reiterating observations by other auction houses.

In 2023, Bonhams saw impressive results for exceptional loose diamonds and gemstones in its New York auction, headlined by sapphire, ruby and emerald.

Notable lots included a Leviev platinum ring adorned with a 35-carat emerald-cut type IIA D-colour diamond of VVS1 clarity grade, which achieved US$2.7 million; and a ring with a 22.10-carat oval brilliant-cut type IIA D-colour diamond of VVS2 clarity grade, which earned US$1.62 million. Both were auctioned off at Bonhams New York.

Other highlights from last year were an 11.87-carat cushion-cut sapphire of Burmese origin, which sold for US$660,900 – three times its pre-sale estimate; and a 1.37-carat fancy intense purplish-pink diamond of VS2 clarity grade, which fetched US$279,900.

To further bolster engagement with digital customers, Bonhams hosted more online jewellery auctions in 2023. In total, Bonhams staged 87 auctions across seven sales locations, representing a 50 per cent year-on-year increase in the overall number of jewellery sales held across Bonhams’ global network. Of these, 58 were online sales.

Worldwide Head of Jewellery at Phillips Benoît Repellin also attested to the continued strength of the luxury market amid a challenging environment. In fact, Phillips launched its inaugural Geneva jewellery auction in November 2023 and ended the year with a 40 per cent increase in total jewellery auction sales over the previous year.

Repellin noted, “There is global demand for rare and captivating jewels and, at our sales events, we continue to offer a meticulously curated selection of gems and jewellery pieces. Strategic pricing, digital engagement as well as the presence of new and younger participants at our auctions contribute to our high sell-through rates and growth.”

Among Phillips’ most remarkable lots in 2023 was a sapphire and diamond necklace by Bulgari, which attained HK$26.83 million (about US$3.42 million) in Hong Kong. The necklace is set with an unheated Royal Blue Ceylon sapphire weighing 118.35 carats, one of the largest faceted sapphires ever to be sold at auction.

In the second half of 2023, Phillips’ autumn sales results reaffirmed the market’s voracious appetite for rare fancy colour diamonds across the board. The top three lots sold in Hong Kong were fancy colour diamonds while Phillips’ maiden Geneva auction was led by a 20.19-carat fancy intense pink diamond – one of the largest fancy pink diamonds to ever appear at auction. This realised CHF11.9 million (around US$13.2 million).

Signed jewels likewise performed strongly in 2023. Phillips sold a fine Kashmir sapphire and diamond ring by Schlumberger for Tiffany & Co for HK$3.3 million or US$423,000 and an iconic Van Cleef & Arpels Zip necklace.

“Demand for high-quality coloured gemstones, diamonds and fancy colour diamonds will remain strong, with clients continuously training their sights on the best,” noted Repellin. “We see more collectors looking for iconic signed pieces, exceptional signature or period jewellery such as Belle Epoque or Art Deco, among others.”

Meanwhile, Heritage Auctions Director of Jewelry Jill Burgum said last year’s auction results demonstrated luxury buyer preference for rarity, quality, condition and refinement.

The US-based auction house reported strong results, led by exquisite diamonds and gems. Some highlights of its 2023 auctions included a fancy light blue diamond and platinum ring; and a Burmese spinel and diamond ring in 18-karat gold.

Other top-performing lots included a 13.87-carat no-heat sapphire from Madagascar and a 2.64-carat Paraiba tourmaline as well as designer jewellery pieces such as a Van Cleef & Arpels Zip necklace with sapphires and diamonds in white gold.

“The Zip necklace was the showstopper of the season. It held all the right interest factors to attract luxury buyers – brand name, rare design, pristine condition, original presentation box and book and was sold to benefit a charity. It was perfection,” revealed Burgum.

While opportunities abound in the jewellery auction sector, sourcing fine materials is becoming more difficult, the company official said.

“The year 2023 was impacted by global geopolitical and socioeconomic factors. Buyers were more selective in utilising their purchasing power,” she noted. “Opportunities for growth and expansion arose in social media outreach. At the same time, sourcing fine and rare materials proved to be more of a challenge.”

The struggle to find better-quality materials and convert these into top-tier results could very well persist in the first quarter of 2024, according to Burgum.

Road ahead

Sek of Christie’s is cautiously optimistic about 2024, citing 2023 auction results as having demonstrated jewellery’s steadfast appeal amid a tough global market.

“Our role will continue to be centred on presenting the most magnificent jewellery, gemstones and jadeite at appropriate price points to collectors, ensuring our sales are meticulously curated with a diverse array of superb pieces to cater to the demand in the Asia Pacific region and beyond,” she added.

Bonhams’ Ghika, meanwhile, highlighted the auction house’s hybrid business strategy in 2024. She said Bonhams will continue to offer both live and online sales across its global sale locations, with the digital aspect of the business focusing on “The Weekly: Jewelry” – an initiative first introduced in the US in 2022. The concept offers over 100 daily-wear jewellery items added online on a weekly basis, creating a wider selection of jewellery for Bonhams’ global network.

Asia will also play a crucial role in the continued growth of the jewellery auction sector. Ghika stated, “There is continued growth and appetite for fine jewels within the Asian jewellery market, especially for impressive stones and notable designs from established jewellery houses. We will continue to offer both live and online auctions to further grow the market.”

For his part, Repellin of Phillips said the year 2024 will likely see strong competition for signed jewels, as well as exceptional jewellery pieces and gemstones as more clients view jewellery as a collectible category similar to art.
 

Most valuable jewellery auction pieces of 2023

1. ‘The Bleu Royal’ – a 17.61-carat, fancy vivid blue, internally flawless diamond, which realised US$44 million and became the most expensive jewel sold at auction last year. Christie’s Geneva, November 2023

2. 'Estrela de Fura 55.22’ – a 55.22-carat Mozambique ruby, which fetched US$34.8 million and established a new world auction record for a ruby and for any coloured gemstone ever sold at auction. Sotheby’s New York, June 2023

3. ‘The Eternal Pink’ – a 10.57-carat pink diamond, which achieved US$34.8 million – a world auction record for a fancy purplish-pink diamond. Sotheby’s New York, June 2023

4. ‘The Infinite Blue’ – an 11.28-carat radiant-cut fancy vivid blue diamond, which sold for US$25.3 million. Sotheby’s Hong Kong, October 2023

5. ‘Bulgari Laguna Blu’ diamond – an 11.16-carat fancy vivid blue diamond, which gained US$25 million and became the largest and most valuable Bulgari jewel to sell at auction. Sotheby’s Geneva, May 2023

6. A 20.19-carat fancy intense pink diamond, one of the largest fancy pink diamonds to ever appear at auction. The piece realised US$13.2 million. Phillips’ inaugural Geneva auction, November 2023

7. ‘The Pink Supreme’ – a 15.48-carat fancy intense pink internally flawless type IIA diamond, which generated US$10.81 million. Christie’s Hong Kong, November 2023

8. The Jadeite Tianchi, which sold for US$4.1 million. Sotheby’s Hong Kong, October 2023

9. Sapphire and diamond necklace by Bulgari, which was snapped up for US$3.42 million. Phillips Hong Kong, May 2023

10. Carved jadeite and diamond pendant, which fetched US$3 million. Sotheby’s Hong Kong, April 2023