Such an astonishing price is not limited to pink diamonds.

In April, the De Beers Blue, a 15.1-carat fancy vivid blue diamond, sold for US$57 million (HK$451 million) at a Sotheby’s auction after an eight-minute bidding war between four bidders.

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The record price for a jewel or stone of any colour was US$71 million (HK$553 million) for the Pink Star, an oval-shaped, 59.6-carat fancy vivid pink diamond, sold at Sotheby’s Hong Kong in 2017.

And there are more pink gems on the way. Rahul Kadakia, the international head of Christie’s jewellery department, said the 18.18-carat Fortune Pink – the largest pear-shaped fancy vivid pink diamond auctioned – was offered at Geneva Magnificent Jewels on November 8.

Clearly, the appetite for gems and jewellery is there and with prices comparable to those before the pandemic hit.

“Our jewellery sales have been well attended since we reopened our live saleroom, and we look forward to achieving another strong autumn season,” Kadakia said.

Others are expecting strong sales, too. Ngan said Sotheby’s core luxury sales were up 20 per cent in the first half of 2022, cementing the division as the fastest growing area of the auction house’s business.

“For jewellery, global auction sales are up by 14 per cent year on year, average lot value saw a 30 per cent increase year on year, and a quarter of our bidders and buyers are new to Sotheby’s,” said Ngan.

She noted that Asian collectors acquired half of all the jewellery sold by value, including the sale of the De Beers Blue.

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Another trend among collectors is for high jewellery.

“Alongside exquisite quality stones such as diamonds and coloured gemstones, signed high jewellery pieces by global jewellery houses are gaining in popularity as more collectors look for design-oriented pieces,” Ngan said.

The Hong Kong Trade and Development Council has organised annual events for collectors, such as the HKTDC Hong Kong International Jewellery Show and the HKTDC Hong Kong International Diamond, Gem & Pearl Show.

According to the HKTDC, it surveyed more than 1,000 exhibitors and visitors during its twin jewellery shows in August. The results showed that the most popular purchases were diamond jewellery, followed by gemstones and jade.

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But luxury cannot exist in a bubble, as the materials for making these pieces are vulnerable to global fluctuations.

“Gold prices shot up in 2022, as the Ukraine war increased geopolitical risks and drove investor demand for gold as a safe investment. High prices along with lower disposable income [as inflation rose around the world] have so far prevented a strong bounce back in demand for gold jewellery in 2022,” said Barsali Bhattacharyya, a manager at the Economist Intelligence Unit’s Industry Briefing operations.

“In 2023, investor demand for gold is likely to weaken as central banks around the world increase interest rates to rein in inflation. While this will reduce prices of gold jewellery, sales growth will be limited by a cost-of-living crisis in many markets, quick drawdown of household savings accumulated during the pandemic and falling consumer confidence,” Bhattacharyya said.

She said while jewellery sales in some Middle Eastern countries such as Saudi Arabia and the UAE, where high oil prices have provided an economic boost, are expected to shine, it will not be enough to offset sluggishness in China.

“Asia accounts for nearly 18 per cent of the world’s high-net-worth population in 2023, with China contributing a third of the region’s total,” Bhattacharyya said.

A spokesperson for the HKTDC suggested Hong Kong jewellery makers can sell their wares in Southeast Asia.

The jewellery industry in Hong Kong seems robust now at least, with record auction prices, strong event participation and export optimism.

According to the HKTDC, for the third quarter of 2022, the HKTDC Export Index – a metric designed to gauge the prospects of the near-term export performance of Hong Kong traders – increased by 1.9 points to 32.8, an improvement on the 30.9 recorded for second quarter and 24.7 for first quarter of 2022. “This indicates that many Hong Kong exporters are gradually becoming more optimistic with regard to their short-term prospects,” the HKTDC said.

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Overall, the jewellery sector had the highest sub-index at 44.2, followed by toys at 37.0. It also enjoyed the largest improvement in sentiment, recording a 9.9-point increase over the previous quarter, while the electronics sector gained 2.3 points to 32.7.

“The city’s exports of fine jewellery recorded a 4.2 per cent year-on-year decline in the first three quarters of 2022,” said the HKTDC. “Looking ahead, Hong Kong’s export performance will remain under pressure, as elevated inflation in major advanced economies and more aggressive tightening of monetary policies in response continue to dampen global demand,” it said.