Diamonds
© AFP/File NEW YORK (AFP) - The Ponahalo diamonds, mined in South Africa and named after a tribal word meaning "vision," sold at Christie's in New York at the end of an auction overshadowed by massive losses on world stock markets.
The Ponahalo weighed 316 carats when discovered in its rough form in 2005 and two separate diamonds were cut, weighing 70.87 and 102.11 carats respectively.
The first sold for 2.15 million dollars, including commission, and the second for a total of 4.11 million dollars.
Although the bid came in anonymously to a telephone operator in the packed auction room, the buyer was apparently so proud at the deal that he wanted to be revealed.
"The buyer of the diamond was Mr Amer Radwan of Dubai and he has asked us to relate to you that he purchased this diamond," auctioneer Rahul Kadakia announced, prompting surprised laughter and a few gasps in the auction room.
The dramatic sale of the two stones, which are about the size of small chocolates, came on a day of price collapses on stock markets around the world and growing fears of recession in the United States.
On Wall Street, a short bus ride from Christie's in Manhattan, the Dow Jones Industrial Average slid 733.08 points, or 7.87 percent to 8,577.91.
This was the worst one-day point loss since last month's record 777-point decline and the steepest percentage drop since 1987.
The diamond industry is warning of a painful end to the year, typically when dealers and sellers earn most of their money through Christmas and other holiday spending.
Christie's said that Wednesday's sale of gems, ranging from necklaces to gem-encrusted pens, grossed about 29.7 million dollars.
This was short of the expected 35 million dollar and several of the most glamorous and expensive pieces were withdrawn for fear of poor sales. A higher portion than usual of items on the block failed to sell.
Auctioneer Francois Curiel looked on the bright side.
"It's huge if you think that in a few hours today nearly 30 million dollars worth of diamonds sold in what are hardly great market conditions," he told AFP.
The Ponahalos, he said, might be a girl's best friend -- or an investor's.
"Given the volatility of the markets lots of people are looking for portable assets. You can have a house, pictures, stocks, bonds, but with these you have six and a half million dollars you can just put in your pocket."
©AFP