Diamonds can be forever as prices level off

The diamond and fine jewellery market in the Middle East is levelling out with one expert saying now is the prime time to buy precious stones.

David Warren, Director of Christie's Jewellery Department and Head of Jewellery in the Middle East says diamond prices are at 2006 levels.

"Prices boomed between 2007 and 2008 when average rates rose 90 per cent, compared to 30 per cent between 2004 and 2007 and just 6.3 per cent from 1992 to 2004 and so buyers are getting a better deal because it has put off those out to make a fast buck.

"The bubble of two years ago was very worrying and those prices were never going to be kept up. They have now dropped back 50 to 60 per cent, which has taken out speculators and kept buyers," explains Warren, who hails from Scotland but is now based in London and travels the world sourcing items for Christie's.

This week the international auction house is gearing up for its next sale in Dubai.

The diamonds, pearls and watches showcase will offer a number of rare pieces, that the expert, has not come across before.

"We have three boxes by Buccellati, which I have never seen before. They all have Middle East designs on them, which is quite interesting," says Warren, 51, who has worked for Christie's for 30 years.

This sale – which is one of two the firm will hold this year at Jumeirah Emirates Towers – features jewellery primarily from the past decade although there are a couple of pieces from the 1990s. Most come from limited edition collections with a maximum production of 50, but some are one of only two or three in the world.

Currently in Dubai to promote the April 28 sale, Warren says the event could provide opportunities for buyers to capitalise on reduced prices of late.

"Now there is a proper market rather than an inflated one and as such there are some extremely good stones at great prices."

Pearls have not been affected in the same way and even though Dubai is a traditional source, there are some spectacular lots for sale, including a five-row necklace estimated at $180,000 to $220,000 (Dh660,600 to Dh807,400).

Although he now makes a living buying and selling jewels, they were not the Scotsman's first love. Although he has specialised in them throughout his time at Christie's he was more interested in armour as a child. This interest was sparked through his mother's antique shop in Glasgow, where he sold items picked up at other stores and sales.

"I started off buying armour but soon got bored of it so bought drinking glasses instead, which I still love collecting. I then moved on to furniture and paintings but carrying them around and storing them at my house was difficult, so I decided to go into something smaller," explains Warren. "It also didn't help that I couldn't buy just one thing; if there was a series or other items similar, I wanted them all."

As he flicks through the catalogue of 150 lots, the expert describes how it is important to look at the stone rather than its setting because the latter can always be melted down and re-made for a few thousand dollars, which he believes is a worthwhile investment for a stunning diamond.

This auction also has the rare advantage of having some items priced below $10,000 (Dh36,700) while others have no reserve, making it even more affordable to put a bid in.

"It's uncommon to sell pieces without a reserve but they make the auction fun," says Warren, who established Christie's Hong Kong branch in the early 1990s.

"Shops have profit margins so often have a higher selling price than you would find at auction. One benefit of buying from a shop is that if it specialises in emeralds or watches there could be thousands to choose from, but while you have to be more flexible at auction the price a piece fetches is generally regarded as its true value."

Nevertheless, even if buyers have a limited budget, Warren advises to invest in one piece rather than trying to spread it over many items.

"It is important to buy good quality. One can be lured into buying something that's third rate because it's cheap but if it's third rate it will always be cheap. It's better to put your money into one or two good pieces than 10 mediocre ones."

Warren has a long history in the jewellery business, but surprisingly does not wear much himself; just a watch and simple gold wedding band. But closer inspection reveals a wedding band with a difference; this is a 17th century specimen with an of-the-time rhyme engraved around the inside.

"I don't have a lot of jewellery but I like what I buy," he confesses.

With Dubai still a relatively young market for Christie's – its first sale here was in 2006 – it has great scope for the future.


Star lots

Omega watch

The white gold automatic central Tourbillon bracelet watch, bottom left, is set with 148 or 16.2 carats of baguette-cut diamonds and 13.8 carats in 176 emeralds. Sold by Asprey, London, circa 2000 it is estimated to fetch $80,000 to $120,000.

Earrings

This pair of three-stone diamond earrings, left, are estimated at $300,000 to $500,000.

Necklace

The three-stone pendant, far left, comprising a 3.02 carat heart-shaped diamond, 2.05 marquise and 5.72 pear, is estimated at $40,000 to $60,000.

Lange and Sohne Watch

Seen above, this platinum manually wound five-day going Tourbillon wristwatch was produced last year.

Ulysse Nardin Watch

From a collection of just 30, the Red Square platinum wristwatch, below, has an enamel cloisonné dial presented in a translucent enamel egg. Made in 2005, it is estimated to sell for $80,000 to $120,000.

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