Rare 102-carat Canadian diamond at auction this month could be among the world's most expensive

A rare 102-carat diamond found in Northern Ontario two years ago could be among the most expensive of its kind in an auction that starts online and is set to culminate in person in Hong Kong in early October.

Mined at DeBeers' now-closed Victor Mine in 2018, the diamond, about the size of a small egg,was cut from a larger 271-caratrough diamond, and thencut and polished for more than a year.

Those in the industry say the stone has a lot of features going for it. The diamond is known asa Type IIa diamond, which are among the most chemically pure amongnaturally occurring diamonds. Only about one or two per cent of all diamonds end up being Type IIa, Toronto-based high-end jewelry designerReena Ahluwaliasays.It's also rated D colourand considered flawless, a characterization that British auction house Sotheby's says is bestowed ononly 0.5 per cent of all mined diamonds.

Sotheby'sstarted the bidding for the stone online this week, and the process will finish off with an in-person auction in Hong Kong on Oct. 5. As a testament to its rarity, the auction is being held without areserve price, which means there is no minimum bid, and no figure to theoretically limit what a buyer may think it is worth. Sotheby's says it is the first time a diamond of this calibre has ever been sold without a reserve price.

Sotheby's said it's the second-largest oval diamond to ever come up for auction, only slightly smaller than the 118-carat diamond that sold for $30 million US in 2013. It's also only the eighth oval diamond of 100 carats or moreto ever come up for auction.

'Miracle of nature'

Currently, the record price for a diamond at auction was $83million US for the so-called Pink Star diamond, a 59-carat jewel that sold in 2013. Other diamonds, including those in the British Crown Jewels, and the Hope Diamond in the Smithsonianmuseum, would likely sell formore because of their symbolismbut they never come up for sale.

WATCH | 102-carat diamond was cut and polished for more than a year:

102-carat Canadian-mined diamond up for auction

4 years ago

Duration 0:28

Huge, flawless diamond unearthed in 2018 at the Victor Mine in Northern Ontario is set to fetch millions at auction.

Ahluwaliacalls the stone in question a "miracle of nature" and one that is likely to fetch a large amount because of its unique characteristics.

"These larger diamonds are investment pieces," she said. "And therare quality of this one is hard tocome by."

As it has done to many industries, COVID-19has changed the market for high-end jewelry, Ahluwalia says. In the early days of the pandemic, sales even at the high end slowed to a crawl simply because people weren't out shopping for them, or for anything else.

But since the international community has gotten behind online selling, demand has come back in a big way.Many more large diamonds, withcarats counted in double or triple digits, are slated to go up for auction in the coming months. That's why some think the price tag for this Canadian diamond could set a record.

$30M or maybe more

Sotheby's has estimated the ultimate sale price at between $12 million and $30 million US. But guessing thelikely sale price is hard to do because the winning bidder may be motivated by the investment potential orby more emotional considerations, Ahluwalia says. Shenotes that another famous diamond, now known as the Moon of Josephine, was purchased for $64 million US at auction in 2015by Chinese billionaire Joseph Lau.

The bidding for thatstone went higherthan people expected, Ahluwalia says, because Lauwanted it for his daughter, Josephine. Someone may feel the same way about this diamond.

"If it's a personal purchase, maybe it gets mounted and will be enjoyed as a piece of jewelry," she said. "But some investors are justlooking for another opportunity."

Ahluwalia has a personal connection to the mine where the stone was first discovered. Shortly after the mine opened in 2008, Ahluwalia was commissioned by the Ontario government to redesign the mace that opens and closes sessions at the provincial legislature,and to incorporate diamonds from the Victor Mineinto the mace.

She says the diamond's Canadian origin may help nudgeup the price, since Canadian gems are considered to have higher standards for ethics and sustainability than those mined in some other countries. But ultimately, the diamond will sell for whatever it sells for on its own merits.

"Because it's fantastic," she says.