New York, NY – In 2008, a 1.77-carat, radiant-cut purplish-pink diamond from Rio Tinto`s Argyle mine in Australia didn`t attract much attention, and went unsold.  In 2009, Scarselli Diamonds partnered with some other companies and bought the diamond with plans to re-cut it.  Most Argyle diamonds tend to be difficult to cut because they often have many inclusions, increasing the risk of cutting too much and lowering the overall value.

Joshua Sheby, a gemologist with Scarselli, thought there was potential to successfully cut it.  "It was just a matter of readjusting some of the angles," he said, "and bringing out that red component".  The `red component` was the result of his work: a 1.61-carat, radiant-cut purplish-red stone with an estimated value of over $2 million.  Argyle Pink Diamonds issued a letter of rarity, signed by business manager Josephine Archer, stating the diamond has been renamed the "Kimberley Red".  The letter also stated that only one other diamond over 1.5 carats and classified as "fancy purplish-red" has been graded by the GIA (Gemological Institute of America) in the past ten years. 

The Argyle mine is expected to run dry by 2018, and it is, at this time, the source of more than 95% of the world`s red diamonds.  "Given the approaching end of mine life," Archer`s letter says, "this gem is a significant legacy of the rare and unique fancy colored diamonds produced in this remote part of the world".  Sheby and Scarselli Diamonds are undecided regarding what they will do with their treasure.  The "Kimberley Red" could be sold at auction, to a retail outlet, or to a collector.  They also might allow a museum to buy it or rent it for a specific amount of time.

Considering the rarity of red diamonds, the "Kimberley Red"—a testament not only to the beauty of diamonds but also to the skill of great diamond-cutters—could sell for a record-breaking price.  At this time, large, unusual stones are still very much in demand with collectors and investors.  The value of a diamond such as this is as high as a bidder is willing to go, and that could easily be millions and millions of dollars.

At this time, there is a smaller—but no less rare—0.52-carat, SI-1 Clarity, radiant-cut purplish-red diamond is in the hands of Israeli diamond wholesaler Leibish & Co.  This gem, too, was GIA-graded and comes from the Argyle mine in Australia, but is less than 1/3 the size of the "Kimberley Red".  Nonetheless, its sale is expected to bring out the big spenders.  In 1987, a fancy purplish-red Hancock Red Diamond sold for $926,000/carat.  In 2007, a 6.04-carat fancy blue diamond was sold for $1.3 million/carats.  On the average, a flawless, colorless diamond sells for about $100,000/carat, so the market clearly changes for naturally-colored diamonds.

The red diamond is such a rare find that it takes on an other-worldly quality.  Museums and collectors line up, prepared to spend millions, to be able to say they have one of these uncommon beauties.  The value never decreases, and, when the Argyle Mine does run dry, we should see the price of red diamonds skyrocket.