Cullinan Heritage 505.5 carat diamond sold to Chow Tai Fook Jewellery in Hong Kong David Robertson From: The Times February 27, 2010 12:56PM
IT'S a bauble that even a banker with an intact bonus would struggle to buy - the 507.5 carat, flawless white-coloured Cullinan Heritage Diamond, which was sold to a Chinese buyer today for $US35.3 million ($39.4m).
The sale price achieved by Petra Diamonds is a record for a rough stone and comes as the market is recovering from its lows last year, when it was hit badly by the recession.
The sale of the Cullinan Heritage is significant in several ways, not least because it is an extremely rare stone that diamond experts have likened to the discovery of a Van Gogh masterpiece.
The size, colour and flawlessness of the stone has enabled Petra, which is listed in London, to secure a price per carat more than twice that which a smaller stone would fetch.
The sale to Chow Tai Fook Jewellery in Hong Kong highlights the growing importance of China in the global diamond market. The Chinese are thought to have overtaken Japan as the second-largest market for precious stones behind the US.
Greater affluence and a fashion among urban couples for diamond wedding bands has propelled sales in the country.
Diamond prices have recovered about 70 per cent of their value since early last year, although demand in America remains weak.
The discovery of the Cullinan Heritage also confirms Petra's faith in the South African mine. It paid ₤85.6m ($145.8m) two years ago from De Beers, which wanted to concentrate on newer mines.
The Cullinan mine began production in 1903 and is famous for its large gems, including the largest ever discovered - the 3106 carat Cullinan Diamond, stones from which are featured in the Crown Jewels.
The Chow Tai Fook Group has not revealed its plans for the diamond, which could be cut into smaller stones.
'its great that NAD has strong chinese connections through SINO investments and through Legend as well.
Merlin is known for producing high value stunes and china is the market for them.
NAD Price at posting:
96.0¢ Sentiment: Buy Disclosure: Held
