Diamonds are a downturn's best friend

Glimmer of hope ... Sotheby's head of jewellery, Hamish Sharma, with a pair of Bulgari diamond and emerald earrings and a 24-carat diamond necklace. Photo: Peter Rae

Retail may be in the doldrums, but resale at the top end of town is booming, with Sotheby's banking on record results for its fine jewellery auction in Double Bay on Monday.
''The level of interest we've had in this auction is the highest ever,'' Sotheby's Australia head of jewellery, Hamish Sharma, said.
''Telephone and absentee bid registrations are tracking well ahead of what we've had in the past and I'm pretty confident we'll have our best ever result.''

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A diamond necklace with a top estimate of $550,000 is the centrepiece of Sotheby's Important Jewels auction comprising 224 lots worth $2.2 to $3.1 million including a South Sea pearl necklace with a top estimate of $220,000, 40 Bulgari pieces and others from the likes of Cartier and Tiffany & Co.
Monday night's auction follows a record result for Sotheby's jewellery auction in Melbourne in April, which generated over $1.4 million in sales.
''The market at the moment is quite value-conscious, so, if you can get that combination of value, quality and design, then you will do well,'' Mr Sharma said.
He claimed auctions offered the opportunity to buy baubles at ''up to 80 per cent off what the retail price would be'', and increasingly appealed to 30-something professional women looking for an investment as well as a pretty piece of jewellery.
''You see a lot of young solicitors in their mid-30s that come to the (auction) viewings who are looking to treat themselves if they've had a promotion, a bonus or have pulled off a big deal,'' Mr Sharma said.
''It becomes a memento of their achievements but in a few years they'll also have quite a nice little nest egg that they've had the pleasure of using and owning but that has also helped create them some assets.''
Most of the auction's vendors are still alive, although in some cases children have submitted pieces owned by their late parents.
''Sometimes it's about a change of lifestyle, '' Mr Sharma said.
''For example, the lady with the diamond Bulgari necklace had a sea change and she doesn't wear it anymore, so she said 'Let someone else enjoy it'.''
While there are plenty of ''entry level'' pieces in the realm of $600 to $900, Mr Sharma says the true jewellery connoisseurs will aim high.
''Diamonds are always desirable, as are vintage pieces and anything rare by a famous house like Cartier or Bulgari.''