What Does a Diamond Dealer Buy at Auction?

As springtime approaches, my Instagram feed transforms into a display of incredible jewelry, signaling the beginning of auction season. For years, I’ve been watching the auction calendars of powerhouses like Christie’s and Sotheby’s along with Bonhams and Phillips, consistently amazed by the six and seven-figure gemstones and jewels they curate, often with impressive provenance.

If I find myself in New York during this time of year, I always see which of my dealer friends I can tag along with to an auction preview or two. Conveniently, Christie’s has their main office near 47th St., making it easy to pop in and visit the jewels. I’ve often run into familiar faces or past colleagues, reminding me what a small world the jewelry industry is. 

While some previews are open to the public, serious collectors or dealers seeking special pieces can arrange to sit down and review their chosen auction lots. Last May, I attended the dealer preview for the controversial Heidi Horton collection which was so massive it was broken down into three separate auctions. I was invited by a friend who specializes in selling loose diamonds to retail stores. We sat down with a long list of items to see and the Christie’s associates pulled out trays full of Harry Winston, Van Cleef and Arpels, and Cartier. As he evaluated several pieces for potential bids, I wondered, what exactly was he searching for that he didn’t already possess or couldn’t easily buy?

The advantage of being a seasoned diamond and gemstone dealer in a room full of too ostentatious for everyday jewelry became obvious. He inspected each sizable diamond through a loupe, scrutinizing its cut and clarity for imperfections. Based on the sale estimates, he calculated whether he could potentially recut or repolish the piece and turn a profit. I was amazed.

Dealers occasionally purchase items from auctions and dismantle large jewelry pieces adorned with gemstones or diamonds that have fallen out of fashion or are anticipated to be a tough sale. Surprisingly, acquiring an entire necklace or bracelet can sometimes cost less than purchasing an individual stone on the open market. 

These professionals have handled and evaluated thousands of diamonds and gemstones and it is a necessary skill to spot valuable opportunities. Recutting and polishing stones demand years of experience and daily interaction with gemstones. It’s a delicate art form best left to the trained eye.