Background on the Esperanza Diamond
When an icicle shaped crystal was found in Arkansas in June of 2015 the “Esperanza Diamond” was born. The perfect D color, internally flawless, uniquely designed gem that was cut from it was quickly recognized as the most valuable and most important diamond ever found on US soil. For more details on the amazing discovery, see the article Esperanza – All American Diamond
Esperanza in the rough courtesy of American Gem Society
The Whiteflash Esperanza/AGS Connection
As a proud American Gem Society member, strong supporter of AGS Laboratories, and winner of the 2015 BBB Pinnacle Award
, Whiteflash has been chosen to host the historic diamond in Houston as part of a short tour across America. The Esperanza will be on display in the Whiteflash Sugar Land showroom February 3,4 and 5 for the public to enjoy.
The diamond is being displayed to the public before it is sold, possibly into a private collection. The auction format sale involves a bidding process channeled through the AGS member stores hosting the tour. Bids will be accepted through Valentines Day February 14, 2016.
Why the Esperanza Diamond may be Dramatically Undervalued
Most estimates suggest that the winning bid will be in excess of $1 million US dollars. But how has that figure been determined, and might it be far too conservative considering the uniqueness and provenance of this iconic gem?
The Esperanza Diamond courtesy of Embee Diamond Technologies Inc.
Appraisals and pre-sale estimates are normally based upon “comparables”. But when dealing with one-of-a-kind items, there really are no true comparables. Yes, there are other diamonds the size, color and clarity of the Esperanza that are available for much less than $1M. But when considering the compelling intangibles associated with Esperanza, there is no real comparison to anything else that has ever been on the market. This is an All American diamond in every way, which makes it truly iconic.
The best way to think about valuation of the Esperanza Diamond is not in the conventional sense of what a passionate collector might pay to own a rare piece of Americana and of American diamond history. Think about it from a standpoint of the public relations or marketing value it might have for the right corporate entity. What better symbol of “Made in America” could there be that would captivate the imagination and interest of the general public and draw them to a particular brand?
Think about high-end sporting venues and luxury suites. These are rarely purchased by individuals today because prices are in the stratosphere. But for many businesses, the value is excellent because they represent positive return on investment rather than simply an expense. They are used for team building and to entertain VIP clients and to cultivate relationships that pay long term dividends for those companies.
Another sports/marketing perspective which really underscores the thesis that the initial $1M estimates for Esperanza may be vastly undervalued is a comparison to costs of advertising during the Super Bowl. In just a couple of weeks (about the time of the Esperanza sale) companies will pay $4.5 million for a 30 second ad during that football game. For over 4 times as much money they will rent the public’s attention for one half of one minute! The purchaser of the Esperanza, on the other hand, will own it. They will have a tangible asset that costs little to maintain, is easy to transport, will most likely grow in value as awareness surrounding it increases over time, and which can be re-sold, potentially for a handsome profit in the future.
When thinking about Esperanza in a holistic way and from a business perspective, $1 Million dollars sounds like it just might be the bargain of the century. And it would therefore not be surprising to see bids go substantially higher for this phenomenal gem.
As full disclosure, in our role as one of the select AGS member hosts on the Esperanza tour, Whiteflash is authorized to accept bids and could potentially earn a finder’s fee for attracting the winning bid. However, that does not make the value perspective as laid out above any less valid!