Record-breaking pink diamond sale cancelled

Posted March 07, 2014 | By Stephanie Chan • Staff Journalist

The record-breaking auction sale of the “Pink Star”, believed to be the largest known fancy pink diamond, has fallen through after its buyer defaulted on payment.

New York-based diamond cutter Isaac Wolf bid US$83 million (AU$92.7 m) for the stone, which he renamed the “Pink Dream”, at a Sotheby’s auction in Geneva last November.

Diamond cutter, Isaac Wolf

The Pink Star diamond ring seamingly sold for US$83 million

The auction reportedly took a mere five minutes and, at the time, recorded the highest price ever paid at auction for a diamond or jewellery item.

In a post-earnings conference call held by Sotheby’s, it was revealed that the company had reversed the related commission revenue and recorded the pink diamond in its inventory at a value of approximately US$72 million (AU$80.4 m), the equivalent of the corresponding purchase price in Swiss francs.

During the call, the auction house’s chief financial officer, Patrick McClymont, commented: “We are currently pursuing a resolution with the defaulting buyer while also considering other alternatives. In the meantime, we are quite comfortable with our valuation and see real value in owning it [the diamond] at this price.”