SimplexDiam Inc. say that their auction of the Fortunoff loose diamonds recovered over 73% on cost. Simplex reports over 30% better result than best comparable diamond auction.
“We knew we’d attain a tangibly better recovery than the competition, that’s why we took the project. One has to remember that this isn’t a going-out-of-business sale, it’s an auction to the trade. These aren’t certified stones, they’re 70 pointers down. Both the bidders and the estate seem quite happy with the result,” says SimplexDiam Inc. CEO Yogesh Madhvani.
Recent wholesale auctions have recovered between 35% and 55% of wholesale cost. Retailers usually
pay 20% markup on loose diamonds under 70 points. In other words, retailers own the loose diamonds at 120 cents on the wholesale dollar. Doing the math, this means that Simplex recovered 87.6% (73% of 120 cents) on wholesale cost as opposed to the 35%-55% one normally sees.
Says VP of Finance, Shail Madhvani: “This is a high watermark. Still, I must say we have faith in our math. We’ve been meticulous about keeping data over the years and using it to improve results. It’s this data that has made it possible to build lots that will be most attractive to potential bidders. Intelligent selection, based on multiple variables, allows us to maximize value for the bidder and the estate. It has taken us decades to understand the secondary market this well. We still work hard each time to improve our models.”
SimplexDiam Inc. values and purchases diamonds and fine jewelry. They have functioned as a stalking horse (reserve bidder) in the LID Deal, guaranteeing, in partnership, over $20,000,000. They served as a bidder and winner of the Friedman’s, Whitehall, Colibri, and Christian Bernard residual jewelry inventories. Most recently they performed as an auctioneer of loose diamonds for the Fortunoff Estate in bankruptcy. They are also winners at many major retailers’ quarterly jewelry auctions and provide services to small jewelry retailers and pawn shops by valuing and purchasing
closeout diamonds and jewelry they acquire from individuals and diamond traders. Additionally, their going-out-of-business division is familiar with bankruptcies and going-out-of-business sales across the country.
