The first auction for the sale of The Dynasty collection has been finalized with an average premium of 30% to reserve prices. More than 130 companies and private clients registered to patriciate in bidding. Four polished diamonds were sold; the prices and buyers are not disclosed by agreement of the parties.
In accordance with the company’s strategy, the goal of the first auction was to evaluate the upper bound of the price range that might be offered to the market. Therefore, the announced reserve prices far exceeded the expectations of the participants provided during the four-month international roadshow of the collection. However, the excess of final prices for four gemstones over the reserve prices averaged about 30%; and the maximum excess totaled 52%.
As to the largest gemstone, The Dynasty diamond, the market was not prepared for the significant excess of the average price per carat, given the polished diamond’s weight of 51.38 carats. ALROSA’s strategy for large gemstones is focused on maximizing the price; therefore, this diamond was withdrawn from sale.
Yury Okoemov, ALROSA Vice President:
“Given the informed policy of maximizing the reserve prices for large polished diamonds, the final prices for four gemstones exceeding the reserve prices by about 30% in average confirms the high level of interest from the market and gives us rise to further develop this business. The roadshow of the collection lasted for four months, the sales cycle of such gemstones on the market is two-three years, and therefore we will follow the requirements of the approved strategy. Timing and terms of the second auction for the largest diamond will be announced additionally”.
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