Sotheby’s Says Buyer of Record Diamond Sold At Auction DefaultsKatya Kazakina and Kelly Bit
The buyer of a 59.6-carat pink diamond at Sotheby’s for a record $83.2 million in November, defaulted on the purchase, the auction house said today.
As a result of the buyer default, the Fancy Vivid Pink Diamond, sold in Geneva under an auction guarantee, was acquired by Sotheby’s, the New York-based company said on a conference call.
“Sotheby’s reversed the related auction commission revenues and recorded the Pink Diamond in inventory at its net realizable value of approximately $72 million,” the company said in a regulatory filing with the U.S. Securities and Exchange Commission.
The sale was seen as a sign of market buoyancy and a high-profile success for Sotheby’s, which has faced pressure from investors, including hedge-fund billionaire Dan Loeb. Colored stones, which account for about 0.01 percent of mined production, are prized for their rarity and command the highest price per carat. Pink is the most desirable color.
Pink Diamond Sets $83 Million Auction Record for Priciest Gem: