Kashmir sapphire | GemWise / rwwise.com

A New World’s Record:

November 29th, Christie’s Auction House, Hong Kong, sold a 26.41 carat Kashmir sapphire for 3,838,508 or $145,342.00 per carat. This sale establishes a new world’s record price of Kashmir sapphires sold at auction, besting the former world’s record also established at Christie’s (New York) for the 22.66 carat Hill Sapphire which sold in April 2007 for $3,064,000 or $135.216.00 per carat.

Kashmir sapphires were originally found on a small hillock 13,000 feet up in the mountains of the now disputed Indian state of Kashmir in 1881-1882. The harsh conditions at this altitude meant that the mines could only be worked about one month per year. By 1887 the output of the mines had diminished substantially. The original lessee abandoned the diggings in 1905. Four other groups had a go at it with little success and the sites were more or less abandoned in 1928. A bit of material is still occasionally found, alluvial material at the bottom of the ridge, but the major production of Kashmir sapphire lasted a mere six years.

Kashmir stones are highly esteemed for their color, a vivid purplish blue, a hue often described as “cornflower blue.” Others, most notably Richard W. Hughes, author of the seminal book Ruby and Sapphire, describe the finest color as a Pepto Bismol bottle blue. The problem with this characterization is that Pepto Bismol bottles are now pink—but there are those of us who are old enough to recall when the bottles were a bright medium blue. I recall seeing only one stone of this description and it hailed from Sri Lanka.

Kashmir’s famous characteristic, however, is the silky, milky or fuzzy texture that somewhat diminishes the diaphanity (crystal) of the stone. Myriads of tiny inclusions that resemble dust caught in a ray of sunlight or a sub-microscopic milky way, will, when present, diffract and refract the light, causing the stone to take on a velvety glow. Similar inclusions are sometimes found in gems from Madagascar and Sri Lanka, but absent geographical certainty, these “Kashmir type” sapphires do not command nearly the price of those with old mine provenance. The current record holder was accompanied by four laboratory reports certifying Kashmir origin. This, of course, begs the question: If gems are all about beauty and sapphires from other locations have all the characteristics of the finest Kashmir, why does anyone care where the stone is from? The short answer is branding. The market recognizes a value in stones from the original mine. It is also fair to say that although stones can be found with the characteristic glow, very, very few approach the pinnacle of Kashmir color. I have only seen two stones that can be described as #1 Kashmir color and both were from the old mine.

What a difference a light makes, record breaking sapphire before re-cut, note the large culet visible through the table. Photo courtesy Stone Group Labs.

What a difference a light makes; the current record holder before a re-cut shaved a single carat. Note the large culet visible through the table and the characteristically velvety texture or crystal. Photo courtesy Stone Group Labs.

Rapidly Escalating Prices:

Kashmir prices have been increasing steadily since the late 1980s. According to connoisseur and author Benjamin Zucker, a twenty carat fine quality Kashmir sapphire was worth $25,000 per carat in 1976, though I recall an exceptional stone that sold at auction in the early 1980s for $12,500 per carat. By the turn of the last century prices for extra-fine examples at auction passed $100,000 per carat. Pricing must be taken with a grain of salt. Given varying qualities, the vicissitudes of auction houses, and the lack of any real standardized grading system, it is difficult to compare stone to stone.

Prices for premium gemstones, fancy color diamonds, type IIa colorless diamonds, ruby, sapphire, emerald and lately spinel, have all increased markedly since the 2008 bust. This can be traced to a lack of confidence in paper currencies, generally, and the dollar and Euro in particular.

Connoisseurship–Opinions Vary:

Bear Williams of Stone Group Labs, the first gem laboratory to evaluate the new record holder, was impressed. “My hair kinda stood up on end, it had some sort of magic,” he said describing his first look at the sapphire. When Williams saw it, the stone weighed over 27 carats before it was re-cut slightly and re-polished. From all indications the stone is quite superior to the Hill Sapphire, which American Gem Labs President Christopher Smith described as a “nice stone.” in 2007. Smith rated the former record holder, the Hill Sapphire, at an 8-8.5 on a 1-10 scale. Williams puts this new one well into the 9s, “maybe a 9.8” he says. Chris Smith at American Gem Labs, who did a full quality evaluation, gives the stone an overall Total Quality Integration Rating (TQIR) of Exceptional and a color grade of 2.5 (1-10 scale). Note that AGL’s TQIR factors in rarity, together with quality factors. A five carat Kashmir or the same quality would be graded Excellent.

A Victory of style over Substance?

April 25^that Christies, in a packed auction gallery, lot 261 a cushion cut 22.66 carat Kashmir sapphire set in a pendant surrounded by diamonds sold for a world record price of $3,064,000 to an anonymous bidder. At $135,000 per carat, this sale topped the former world record held by the 66.02 carat “Rockefeller Sapphire” a Burmese gem that sold for $48,871 at auction in 1991. This sale marks the ascension of sapphires found on a rocky hillside in the Indian State of Kashmir into the pantheon of super-star gemstones.

Speaking in the wake of the sale, Christie’s Head of Jewelry, Rahul Kadakia, made the following rather curious statement:

“This auction marks a turning point in the jewelry world where original design, rarity and provenance prove to be just as important as the quality of a gem.”

What precisely did Mr. Kadakia mean? Is he celebrating the final triumph of style over substance? Does he mean that the sapphire in question though rare is not so fine? The record breaking sapphire pendant (above) is certainly not a striking example of original design.

According to Christopher Smith, Vice President & Chief Gemologist at The American Gemological Laboratory, the sapphire in question is a “nice stone”. Smith, who has seen the stone but under less than ideal circumstances, makes the point that sapphires of the finest color tend to be a bit dark particularly in subdued lighting. This stone is a bit lighter and brighter at about 70% tone on the AGL scale where 80% would be ideal. The stone is well proportioned, brilliant and on a scale of 1-10 would rate between 8-8.5.

As to the gem’s provenance, interesting though not remarkable, it was never owned by royalty nor lost on the field of battle nor has it had any remarkable stories or curses associated with it. It was purchased by James J. Hill, a Minnesota industrialist of the Gilded Age, and given to his wife, Mary, on Dec. 24, 1886. Originally part of an elaborate necklace—since broken up– the sapphire remained in the Hill family until the death of Hill’s granddaughter Gertrude Boeckmann Follett, in 2006.

So what business does a nice sapphire like this have claiming a record price? Well though it may not be able to stand toe to toe with the former record holder, the 66 carat Rockefeller Sapphire (image:right), which is in Smith’s words “extraordinary” and one of the “world’s preeminent sapphires”, it is rare. Kashmir sapphires in excess of 20 carats are quite rare and if you own one it’s a seller’s market.

The fact is the finest of the Kashmir sapphire has been recognized as the top of the mark in sapphire almost since the stone’s discovery in the late 19^th Century. Celebrated for it’s cornflower blue color and its trademark sleepy quality, a gem with proven Kashmir provenance commands four times the price of a comparable Ceylon stone and twice the price of a comparable Burmese sapphire. Due to its beauty and rarity it was the next logical candidate for gemstone super-stardom.

Is this a “turning point”, a victory of style over substance, of provenance over quality in the gem markets? This much is obvious, just the price of natural Burmese ruby skyrocketed in the wake of the record breaking sale of the 8.01 carat gem at Christies just two years ago, Kashmir prices, already edging toward $100,000 per carat wholesale, will strengthen. Anything with a Kashmir certificate from gem quality to aquarium gravel will see a big boost in asking prices and the publicity will further induce star-struck consumers to choose geography first and quality second. But, this is not a new trend rather just a continuation of a trend that has been in evidence for quite some time.

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