The 2009 Argyle Pink Diamond Tender:

A Special Preview

(a sneak peek at the pinks!)

It is called the 25th annual Rio Tinto Argyle Diamond Mine’s Pink Diamond Tender. This invitation only, silent bid auction is for the most saturated deeply colored natural pink diamonds the world has ever seen. And it’s going on right now.

Announcing it as their “iconic tender,” this year’s offering consists of 43 faceted Fancy color Argyle diamonds, including 38 fancy pinks, 4 fancy reds, and one fancy violet. With four reds (one straight Fancy Red, and 3 Fancy Purplish-Reds), along with 21 Deep and Vivid Pinks in the Tender, the feverish bidding may reach an all time high. (Or, as Rio Tinto reservedly states, this year’s Tender will be “inspired by ‘Grand Passion’.”

Yes, a lot of passion, along with some very strong bids may win you an Argyle Red, Pink, or Violet.)

The “Heroes of This Year’s Tender”

Those bidding to win a few Argyle Pinks know that there are certain stones – the finest of the finest - that will require more than just a very strong bid to get that win. Helping you out to determine which gems are actually the best of the best, for the second year running, Argyle is naming a few of what they believe are the most important of the selection:

1.) a 2.61-carat heart shape (above) Fancy Intense Pink, called “the Argyle Amour, the most valuable heart shaped pink diamond ever produced from the Argyle mine in Western Australia. Exuding passion, romance and warmth, this extraordinary 2.61 ct. heart shaped pink diamond embodies all that is Amour. Such a magnificent stone could express no less than a profound, true and eternal love.”

2.) a 1.10-carat oval Fancy Red, “the Argyle Scarlett, taking its name from its sensual depth of color and the glamour it conjures, this breathtaking 1.10 ct. oval shaped Fancy Red diamond - with its mysterious and lustrous allure - will be cherished as one of Argyle Pink Diamonds’ true classics.”

and 3.) a 1.25-carat round brilliant Fancy Vivid Purplish-Pink, “the Argyle Shalimar, named after the stunning Shalimar Gardens, an exotic sanctuary built by the Indian emperor Jahangir as a gift to his beloved wife, this magnificent 1.25 ct. round brilliant pink diamond offers a similar luminous array of incredible color, including iridescent pink and rich, intense violet. ‘If there is a paradise on earth, it is this, it is this, it is this.’ Persian expression spoken by Emperor, Jahangir to describe Shalimar Gardens.”

In years past, determining which stones were at the top was left up to those bidding. But Argyle saw greater potential. Not only does a name help the participants realize which gems should be valued the highest, it also gives Argyle an advantage by silently encouraging even more aggressive bidding for those special few stones. And adding a name to those diamonds simply increases the apparent values yet again.

“Each is an incomparable legacy of the Argyle Diamond Mine” says Rio’s press release.

Last year’s heroes were a 1.01-carat round brilliant Fancy Purplish-Red, labeled “Aphrodite,” and a 1.41-carat octagon step cut, Fancy Deep Grey-Violet, named “Ocean Seer.”

Not considered part of this year’s Heroes, but Argyle has matched up two stones to be sold only as a pair – A matched pair of pears - 0.55 ct. and 0.56 ct. pear shapes, both graded Fancy Vivid Pink.

[So there are 43 stones, in 42 Lots. The pair of pears will be sold as one Lot. - gr]

Preparing Your Winning Bid

Those lucky enough to have their invitation to the Tender will also receive a tender catalogue, a bid sheet, a limited edition book; Rare Beauty, The Story of Argyle Pink Diamonds, and access to the special Argyle Pink Diamond Tender website where one can see each diamond, and place a bid. This makes bidding much easier if you cannot travel to a viewing site. But like all colored gem purchases, it’s much better to look at these beauties close up and personal whenever you can.

We were hoping to personally attend this year’s Tender in New York as we have done now for the past ten years running. But the world economy broke our string, with Rio Tinto showing the diamonds only in the economically strong East – Perth, Sydney, Hong Kong, and for the first time in Mumbai. New York as well as Tokyo, London, Antwerp, and Geneva, were all taken off the list of Tender Sites for 2009. Hopefully they’ll be back on the list in 2010.

Commenting on the inaugural Mumbai viewing, Jean-Marc Lieberherr, General Manager for the sales and marketing for all diamonds from Rio Tinto’s mines says, “Presenting the Argyle Pink Diamond Tender in Mumbai is a reflection of the emerging importance of India as a source of demand for colored diamonds. Whilst India has traditionally been a manufacturing centre for the champagne diamonds from the Argyle mine, we are now seeing signs of latent domestic demand for colored diamonds in India. Earlier this year we had a great response from Indian diamantaires to our tender of rare blue diamonds from the Argyle mine and this encouraged us to look to Mumbai as a 2009 Pink Diamond Tender viewing location.”

Soon To Be Even More Pricey?

With reported - but not verified - bids of anywhere from $150,000/ct. to over $500,000/ct., these special diamonds are fairly pricey as they are. A weak economy here in the West, but not in the East, we anticipate hearing even more important numbers from this year’s Lots.

Will prices go even higher?

As you know, Rio Tinto’s Argyle Diamond Mine is responsible for 20 to 30 million carats of gem quality diamonds annually – mostly top light browns and darker, but only a literal handful of pinks. This fact alone will make the 2009 Argyle Pink Diamond Tender a very important event. But the Argyle mine has been given a life expectancy of just one more decade. Knowing that it may be gone in a short ten years, we expect the bidding to become increasingly higher as we get closer to 2020.

[We are obviously talking pink diamonds here, but if you stop and think about it, this also means the end is near for the “chocolate” and “champagne” diamond fashion as well. Is it time to stock up on Champagnes while you still can? - gr]

Other Stats

The Tender stones fall into a basic criteria of “half-carat and larger, Fancy Intense, Vivid, Deep, or Dark Pink, Fancy Red, Violet, or Blue.” Every once in a while a 40-point-something squeaks its way into the tender, as it did this year; a 0.46-carat princess cut Fancy Vivid Purplish-Pink.

33 diamonds in this year’s Tender are below 1 carat, ranging in weight from 0.46 carats to 0.86 carats. 7 diamonds weigh between 1.01 carats and 1.25 carats, with the remaining 3 weighing in at 2.00, 2.21, and 2.61 carats.

It makes perfect sense that the largest would be included as one of the “heroes,” but it’s not all about weight. The shape – a heart – is unique for these stones - and is an especially popular shape in pink.

Colors in this year’s Tender include:

1 Fancy Red

3 Fancy Purplish-Red

1 Fancy Deep Greyish-Violet

1 Fancy Intense Pink

9 Fancy Intense Purple-Pink

7 Fancy Intense Purplish-Pink

4 Fancy Vivid Pink

1 Fancy Vivid Purple-Pink

5 Fancy Vivid Purplish-Pink

10 Fancy Deep Pink

1 Fancy Deep Purplish-Pink

Clarities range from VVS1 to I2, but who’s looking? It’s really all about color, unless the inclusions are so obvious and detract from the overall beauty of the diamond. In this offering of 43 diamonds, there is only 1 VVS1, and only 1 VS1. There are 2 VVS2s, 4 VS2s, 11 SI1s, 10 SI2s, 13 I1s, and 1 I2. This clearly represents the classic selection of Argyle Tender Pinks, just as in years’ past, with the majority in the SI1 to I1 range.

Our thanks to Rio Tinto and Argyle Diamonds, as well as Alan Bronstein of Aurora Gems, New York, and Stephen Hofer, Fancy Color Consultants, Mass.

[All images courtesy of Rio Tinto Diamonds.]

RGNR