'Pink Star' Diamond Fetches Record $71.2 Million In Hong Kong

Pink diamond of 59.6 carat was sold for $71 million in Honk Kong. In November 2013 it was auctioned for a record $83 million to NY diamond cutter Isaac Wolf, who failed to pay.

Due to this sale the auction house gets some respite after it failed to sell other expensive diamonds that were in lower prices like the diamond of Shirley Temple.

This isn't its first purchase of the kind; previous year it bought a green diamond for $17 million at a Christie's auction, and in 2010 the jeweller set a record with its $35 million purchase of a rough diamond from Cullinan Mine. Of all fancy colored pink diamonds, those graded "Fancy Vivid" are the most precious and desirable.

The flawless vivid pink diamond described as "one of the world's great natural treasures" has also become the highest-priced item ever sold at an auction in Asia.

The oval mixed-cut diamond smashed the 60 million U.S. dollars (£48.2 million) pre-sale estimate set by Sotheby's when it went on the block on Tuesday evening.

Mined by De Beers in Africa in 1999, the 132.5-carat rough diamond was meticulously cut and polished for over two years and transformed into a 59.60-carat stunning gemstone. The diamond's actual value - its "hammer price", in auctioneering lingo - was $63 million, and the remaining $8.2 million was the buyer's premium to cover auction house expenses.

Sotheby's made a decision to put the diamond back up for sale due to the rising demand for expensive gemstones in Asian markets. They claim that it is the largest, internally flawless pink diamond they have ever graded. However, Sotheby's revealed months later in its 2014 earnings report that Wolf defaulted on the transaction.

The buyer after although it sold for $83m in Geneva defaulted.