Alrosa To Hold Second “True Colors” Diamond Auction at Hong Kong Fair

25/08/2019 15:44

Russian diamond mining giant Alrosa will host its second annual True Colors auction of natural color diamonds in September at the Hong Kong Jewellery & Gem Fair from 16 to 20 September. The auction will last until September 23. 

Last May, the world's leader in rough diamond output said it was planning to boost revenue from selling rare, colored stones where demand is stable, according to the head of Alrosa's sales division Evgeny Agureev. The global market for polished colored diamonds has been dominated by Rio Tinto and De Beers, but Alrosa confirmed it was going to makes some changes to its sorting and processing in order to compete. “We hope that ... Alrosa will become one of the global leaders in sales of polished colored diamonds,” Agureev said last year, adding that the stones would come straight from the producer, ensuring “transparent origin” in an industry that has been working hard to prevent stones that have been mined in areas that could fuel conflict from reaching the market.

The 2019 True Colors collection consists of more than 200 polished diamonds of fancy colors and various shapes. Most of them are GIA-certified. The collection includes diamonds as 18.07-carat, IF, pear-cut intense yellow diamond, a 6.78-carat, emerald-cut, vivid yellow diamond and a pair of pear-cut Vivid Purplish Pink diamonds (0.54-carat, VVS1 and 0.55-carat, IF). "This auction is a unique opportunity to buy polished diamonds directly from a diamond mining company without third-party fees," Alrosa notes.

Having an in-house cutting division and a closed production cycle, Alrosa guarantees the provenance of each diamond. "All the diamonds are accompanied by an extended digital ‘passport’, which contains the information about the date and place of mining, characteristics, and even information about the cutter and his professional experience. To provide the future customer of jewelry retail with more data on the origin of the diamond, a customized video is also available." The first True Colors auction took place in 2018, where ALROSA sold 210 fancy colored diamonds.

While profit margins are lower in the global polishing industry than the rough diamond business, Alrosa said it is confident it can earn more from selling cut and polished colored gems. The market for fancy colored diamonds, is small, given the inherent limited supply and the end-demand is a small number of wealthy individual buyers, fancy-colored diamonds have certainly had a great deal of helium lately at the auction houses, fetching remarkable prices.