The Red Diamond

2007: The red diamond story is interesting and educational + this can happen even today. I think some people have the 'touch' to locate the source + identify + sell for a profit. At times diamonds can be a gift or curse. Some are just plain lucky to find and hold it forever.

(via International Diamond Annual, Vol.1, 1971) Max Drukker writes:

‘Do you remember the red diamond, Oppie?

My old friend Houthakker and I were walking along the Marine Parade in Durban, South Africa, when we bumped into Sir Ernest Oppenheimer. Houthakker introduced me. We fell to talking about diamonds, as diamond men will, whenever they meet. Houthakker was a diamond broker who regularly sold diamonds to the Oppenheimer group.

“You must remember that piece of boart I showed you in your office, Oppie. It was 33 carats. I asked you what you thought of it and what I should do with it.” “Oh, yes,” said Sir Ernest. “I think I remember. Didn’t I say you should send it to Amsterdam as a piece of boart and let them try to cleave or polish it? What happened?”

And so I told Sir Ernest Oppenheimer the story of the red diamond, for I was one of those brought into consultation in Amsterdam when Houthakker followed “Oppie’s” advice and sent the boart to the Goudvis company in Amsterdam. Louis Goudvis had been the buyer for our company in South Africa for many years.

Houthakker used to visit the diggings at Lichtenburg regularly. One day a digger came to him with a diamond. “Wat moet die klippie kost?” he asked Houthakker, handing him the big piece of boart. “Wait jij geef” was Houthakker’s reply. After a bit of haggling, the stone changed hands at £2 a carat.

When the parcel arrived at the Goudvis company, in Keizersgracht, Amsterdam, the five brothers looked at the black stone. Houthakker had asked the stone should be cut on a fifty-fifty basis. “Houthakker must be crazy,” said the youngest Goudvis. “It’s just a piece of boart. We can use it as a powder for polishing.” But the eldest brother said: “Take it easy. Let’s look at the stone first.”

The master cutter was called in and then the cleaning experts. One and all they insisted it was just a piece of boart. Only the eldest Goudvis brother, holding the stone under lamplight, thought differently. “I see light,” he said firmly. After cabled exchanges with Houthakker, it was decided to make “windows” on each side of the stone. Two carats were lost but the stone was still black. Again the eldest Goudvis said stubbornly: “I see light.”

There were more cabled exchanges with Houthakker. Windows were made on all sides of the stone. It now weighed 23 carats, it looked brownish but nothing else. And then the master cutter made a kind of crystal shape out of the stone and, suddenly, he too saw a beam of light. He took the stone from the scaif and hurried to the eldest Goudvis. It was a miracle. Under a strong lamp a reddish gleam could be seen in the heart of the stone.

This was only the beginning. Heated discussions began about the shape of the stone—whether it should be round or square. After another seven months of studying the stone and polishing it, there emerged an emerald-shaped diamond of 5.05 carats—pure and of red color. The five brothers had become more and more excited. When the stone was ready, it was put on the big table in their private office—and they look at it by candlelight. Except for the candle the big room was totally dark: and in the flicker of its beam, it was as if a drop of blood had fallen on the hand that held the diamond.

This was 1927. We began to wonder what the value of a red diamond would be. Top blue white pure diamonds are rare; but a red diamond, which is pure as well—that, indeed, is a rarity. There was no diamond dealer in Amsterdam who would make a firm estimate. The Goudvis brothers thought it might fetch at least one hundred thousand Dutch guilders. Hugo Prins, the famous authority on polished stones, made a much higher valuation.

Newspapermen were not very helpful about publicizing this red diamond in those days—it’s very different with publicity today. No buyer came along. So it was decided to send the stone to New York. The youngest Goudvis took it there. The four leading jewelers in New York looked at the stone. Nobody was interested. The stone came back to Amsterdam and soon afterwards a cable arrived from the chief buyer of Tiffany’s: “Have customer for red stone.” Again Goudvis traveled to New York and the red diamond was shown to Tiffany’s client—he was owner of one of the biggest soap manufacturing companies in the world and he was looking for an exclusive present for his fiancée. The client offered 100,000 dollars, including Tiffany’s commission.

Cables flashed to and fro. The oldest Goudvis brother wanted to sell, saying it was the chance of a lifetime. The others wanted more—for something extra special, an extra special price. They stood out for $150000. The customer withdrew his offer and was not interested any more.

The stone went back into the safe in Amsterdam. During the Depression and then in the war years, the red diamond had many adventures. During the war and the occupation of Holland a group of German jewelers bought polished diamonds and amongst them was the red diamond, for which 70000 Dutch guilders were paid. Then, when peace came, the red diamond was found again in Germany and bought back to Holland. The Goudvis brothers were now all dead and, as the Goudvis heirs owed money to the Amsterdamse Bank, the stone was sold by tender in 1947. I made a bid for the diamond with an offer of 23000 Dutch guilders. The highest bid was 57000 Dutch guilders. The story goes that George Prins bought the red diamond for an American account. But I do not know where that diamond now is. This is one of those cases where no one knows where a famous diamond eventually comes to rest. One thing is certain. The red diamond is a very special diamond indeed.