Winning the Argyle Amour!

Forty-three of the world’s most important and rare  deeply colored pink diamonds were presented recently at Rio Tinto’s very exclusive Argyle Pink Diamonds Tender. This is an invitation only, silent bidding event attended by approximately 100 of the world’s most elite fancy-colored diamond suppliers, experts, specialty luxury retail jewelers, and special guests.

This particular Tender included 38 fancy pink diamonds, 4 fancy red diamonds, and one fancy violet diamond. Three of the 43 diamonds were given the title of “Hero,” the best of the best of the best: the “Argyle Scarlett,” the 1.10 carat Fancy Red oval brilliant, the 1.25 carat Fancy Vivid Purplish-Pink round brilliant, called the “Argyle Shalimar,” and the 2.61 carat Fancy Intense Pink heart-shape, titled the “Argyle Amour.”

On October 22nd, 2009, after months of touring select major cities around the world for private viewings, Rio Tinto announced that all 43 diamonds in its 25th anniversary Argyle Pink Diamonds Tender had been sold. While Rio Tinto was very pleased with the results, the winning bids, as well as the winners of the Tender diamonds, remains a secret.

Of course, everyone wants to know who won, and what they paid, but the names of the winners and their bids are always kept strictly confidential.  

Well, that is, all but one.

Here at the Roskin Gem News Report, we are – dare we say it – tickled pink (pun intended) that there was one colored diamond wholesaler who was willing to speak with us about his very special win. And we are extremely pleased to be able to share with you this exclusive and fascinating interview.

John Glajz

Winner of the Argyle Amour

The largest diamond in this year’s Tender was the 2.61 carat Fancy Intense Pink heart shape brilliant, named, “the Argyle Amour.” In fact, the Amour is the largest Fancy Intense heart shape ever to come from Argyle.

And John Glajz wanted it.

“I was particularly after that stone,” says Glajz, diamond wholesaler from Singapore. “There was just something about it that I liked.” Yes, who wouldn’t like a two and a half carater, fancy intense pink? “The size, of course. And the color was obviously a very homogenous intense.” Almost Vivid, noted Glajz.

Yes, the size and color were important, but the fact that it was a heart shape really spoke to Glajz. “From my retail jewelry side of the business, I’ve always been very fond of heart shapes,” says Glajz. “I find it to be the most romantic shape for a diamond or for any gemstone.” And this one was the perfect pink heart. “It was a great shape – spot on! And so I thought, ‘this is something I’m going for.’ So I put my bid in.”

And did he ever!

“In fact, I put a bullish bid on it, which is why I ended up the winner.” (I could hear him smiling!)

Glajz is no stranger to the Tenders. He’s been winning bids for years. In 2008, he won several smaller stones. As a consequence of last year’s economic down turn, however, Glajz’s inventory still holds a few of those smaller previous Tender stones. So this year, he decided to put all his bets on the two 2-caraters, but especially on the Amour.

Who is John Glajz?

We mentioned above that Glajz is a diamond wholesaler from Singapore, but that’s just a job description and a location. Glajz has been in the industry for 30 years, in retail, as a jewelry designer, as well as in wholesale.

Glajz is the former owner of the Mondial jewelry brand. “We had a formidable retail brand, which we sold off in 2004. We were probably the first to publicize and launch Argyles in Southeast Asia.”

Today, he is strictly wholesale, and specializes in exceptional pieces of jewelry as well as the global distribution of Argyle Pink diamonds. Glajz has been associated with Argyle Pink Diamonds for many years and is one of Argyle’s major customers. He visits Perth regularly and sells pink diamonds internationally to many of the leading jewelry houses. “John is one of our most proactive customers and his passion for pink diamonds is infectious,” says Josephine Archer, business manager for Argyle Pink Diamonds, “and often results in us undertaking beautiful collaborations with the finest of Argyle Pink Diamonds ‘Select Ateliers’ or retailers. Such collaborations include ‘pink’ events where retailers turn their entire stores and often street fronts over to the pink theme and invite their VIP customers for private viewings of rare stones. Other collaborations have been to create unique pieces together for celebrities or royalty.”

“We’re not just mere gem merchants, who buy and sell stones,” says Glajz. “We work with other brands to build the Argyle brand. We’ve done that with major pearl houses, several renowned and leading European and international jewelry houses and brands, with a jeweler in Copenhagen, and with a jeweler in Zurich, so we grow the awareness. But at the same time we do sell jewelry and loose stones, so we’re a little bit more versatile.”

As Archer puts it, “Glajz is indefatigable, and has a genuine fascination for the uniqueness of Argyle Pink Diamonds.”

Success!

Glajz had seen the Amour about eight months prior to the Tender. As we just mentioned above, he’s a regular visitor to Argyle. “We’re one of their select partners,” says Glajz, “so I’m up there every month to purchase material. I was shown the 2.61, and was told it was going to the Tender.”

From then on, Glajz was focused.

And focused he was - he won the Amour! Is he happy? Of course he is!

But when you win, you then ask yourself, “did I pay too much?”

Glajz answers that question this way. “You know, with tenders, the borderline between stupidity and genius is very, very fine. When they ring you and tell you that you were lucky, ‘congratulations, you got it,’ you don’t know whether you’re the most cleverest guy in the room, or the dumbest guy in the room.”

But that’s part of the Tender and Auction process, says Glajz. The highest bidder is either the biggest winner, or the biggest loser.

“Only time will tell, and maybe sooner than later. We have Christmas and Valentine’s Day coming up soon.”

Re-Cut?

Like all Tender stones, one must consider the potential for better color with minor re-cutting. “The stone could actually even be re-cut and probably improve the color,” says Glajz. And there is a little weight to play with and still keep it above 2 and a half carats. “I would say it’s borderline Vivid at the moment.”

“And if the stone were to be recut – which I have no intention of doing for the moment because the stone is kind of famous as it is… but if the stone were to make a Vivid, it’s worth at least 25% to 30% more.”

The Tender in General

“In all the years I’ve been participating, and visiting Argyle regularly, I would say that this was the finest specific collection,” says Glajz. “There wasn’t a stone there you could criticize.” In past tenders, you have your “Hero” stones, and a few beautiful stones, a few improvable stones, and then maybe 10-15% of the stones that probably deserve to be there for color, but compared to the rest on the table, they just don’t speak to you. But Glajz says this year’s Tender was different. “There was NOTHING in this tender that you would question. Everything was wonderful!”

“I had a little bit more exposure to the 2009 Tender because I was involved in some marketing of it, together with a leading brand in London,” says Glajz. “And we also work with most of the major retailers in Australia.”

What About the Red?

We asked Glajz about the other two Heroes. “I think last year’s red, in my opinion of course, was a better red than this years’ red.”(No, he did not win last year’s red, but he thinks he was close…) “Last year’s was a purplish red. This years’ was a straight red. I didn’t particularly like the stone.”

Ah, but the stone they called Shalimar.., now THAT was one of the finest diamonds he’d ever seen. “I didn’t bid on it, because I bid on the two 2-caraters. I believe it went for a very bullish price, and it’s a stone that will probably never be matched. The likelihood of it ever being replaced is… well, it was the finest round I’ve ever seen.”

It wasn’t red, but it had some reddish flashes. “The stone was the ultimate Vivid Pink, if you can call it that,” says Glajz. “I’ve never seen such color. It had all the ingredients, as well as having a far more commercial shape than a heart. That was a very special stone.”

Yes - of Course We Asked! How Much?

We had to ask what the diamond was worth. “I’m marketing the stone at around $1.5 Million total,” says Glajz. And when you think about it, that’s not out of line when you see one-carat stones of that quality selling for $200-300,000/carat. This stone is a one-of-a kind, 2-and-a-half carater.

“I guess the justification for that,” says Glajz, “is ‘go and find me another 2-and-a-half carat Fancy Intense Pink heart shape’.” Right!

“I think the chances of our procuring a buyer for it in the next 2 to 3 months is very strong,” says Glajz. “My feeling is that it’s going to be somebody’s Valentine.”

Will the Amour be sold as a loose stone, or as a piece of jewelry? With Glajz, you don’t know. Even Glajz doesn’t know. “When I was buying it, I was thinking of jewelry. When I got it, I’m thinking of stone. By next week, if you were talking to me, I’d be talking about it as a piece of jewelry. I was certainly definite about buying the stone, but not that definite about creating a piece of jewelry around it.”

“We might work with it in conjunction with a major jewelry brand and create something for them. Maybe we’ll re-name the diamond. We have many different options. For the moment though, I am focusing just on the stone,” says Glajz.

“At least until Christmas and Valentine’s Day, I’m sticking to the stone story.”

RGNR