The diamond rating is divided into the four Cs. The so-called 4Cs are abbreviations for four English terms that all begin with the letter "C":
Carat weight – the weight of the diamond
Clarity – the clarity or light transmittance of the diamond
Color – the reflection of the diamond
Cut – the craftsmanship of the diamond
While the term "four Cs" is used, the two most important factors are Carat and Clarity. Carat refers to the weight of the diamond, with five carats being equivalent to one gram. Clarity, also known as light transmittance, is crucial for determining the diamond's purity.
The remaining two factors, color and cut, are not as important since they can be modified, but the size and transparency of a diamond cannot be changed.
The diamond that Jiang Hai acquired weighs around six grams, making it truly priceless.
After confirming the authenticity of the diamond, Jiang Hai spent nearly half an hour recovering from the shock, staring at the gem in disbelief. Manager Zhang of the auction house hurried over as soon as he received the news.
Seeing Jiang Hai's stunned expression, Manager Zhang hesitated for a moment before sitting down in front of him, clearing his throat lightly.
"Mr. Jiang, the appraisal of your gem is complete. I'd like to know—are you planning to sell it, or would you prefer to keep it as a treasure?" Manager Zhang asked seriously.
Jiang Hai, still in a daze, subconsciously considered keeping it. After all, according to the appraiser, a 31.6-carat pink diamond would be worth at least $380,000 per carat. That puts the diamond's value at around $12 million. And this was before considering its pristine condition. With a multiplier of 20, the value could easily reach $240 million! Jiang Hai had never seen such a sum of money, let alone thought about it.
$240 million—that's over 1.6 billion RMB.
Although it was still much less than the billions his ex-wife's family possessed (her family ran a small business empire), he did have a diamond worth $240 million in his hands.
But Jiang Hai remained pragmatic. He remembered why he had brought the gem here in the first place: to sell it, not just to appraise it.
"If you want to sell it, I have two options for you," Manager Zhang continued. "The first is an auction. Based on the appraisal, the lowest price at auction will be no less than $240 million, with the highest reaching around $400 million. However, we'll need some time for promotion. The auction would likely take place in either the United States or Europe, and at that point, you'd need to pay a 5% service fee and taxes for the auction, which generally add up to about 20%."
At these words, Jiang Hai's first instinct was that Manager Zhang might be trying to deceive him.
Though he'd never auctioned anything before, he'd heard enough to know that auction houses typically don't charge fees in most cases. A 20% cut seemed far too high.
"These are standard auction fees for each country. Feel free to check online if you wish," Manager Zhang added, noticing the doubt in Jiang Hai's expression. He handed Jiang Hai a form outlining the various fees.
Jiang Hai took out his phone to verify the information and was stunned by the high taxes. While it made sense that auctioning within this country would involve taxes, Jiang Hai found it puzzling that other countries would also impose such heavy fees. According to the form, the tax rates for auctioning abroad were as follows:
UK: 24%
Australia: 27%
US: 22%
Hong Kong (China): 18%
Some third-world countries or regions might have lower taxes, but these were exceptions. What particularly struck Jiang Hai was the tax structure in mainland China, which involved a 20% tax on the net income from the auction price, after deducting the initial purchase price. However, if the item was considered a family heirloom with no set market value, only 3% of the total auction price would be taxed.
While the taxes in mainland China seemed low, the real issue was proving the diamond's origin. If it was found in the soil, it would belong to the country by law. Jiang Hai realized there would be no simple way to prove ownership, and selling it within China would come with bureaucratic hurdles.
Thus, Jiang Hai ruled out auctioning the diamond in China.
"But what is the second option?" he asked Manager Zhang, after some hesitation.
"The second option is for us to take the gem off your hands. The lowest estimated auction price for this diamond is $240 million, but we will offer you $300 million. You won't need to pay any fees, and the money will be directly transferred to your account." Manager Zhang smiled knowingly. This was an offer designed to lure Jiang Hai into a quick deal.
It was a clever trap, but one that Jiang Hai was eager to step into. After all, if the diamond could fetch $400 million at auction, selling it for $300 million seemed like a good deal. Plus, the auction house had connections with wealthy buyers in the Middle East, who might not hesitate to spend large sums for such a unique gem.
For Jiang Hai, selling it privately might be risky. He didn't have the connections or resources to deal with such high-stakes transactions. If he sold it to the wrong person, he could easily be taken advantage of.
As much as he hated to part with the gem, Jiang Hai knew it was a practical decision.
"Let's go with $330 million," Jiang Hai said after a brief pause.
Though he wasn't thrilled with the offer, he knew it was a fair deal. He signed the contracts, and after about five documents, the pink diamond was officially sold to Phillips Auction House. Jiang Hai, in return, received $330 million.
However, there was one complication: how to transfer such a large sum of money.
With the exchange rate at 6.3418 RMB to 1 USD, $330 million would translate into over 2.9 billion RMB. Such a large transfer would certainly draw attention from the authorities.
"Given the size of this transaction, I'll help you apply for an overseas credit card, and the money can be transferred into your account," Manager Zhang suggested with a smile.
"An overseas credit card?" Jiang Hai asked, somewhat confused.
"Yes, we have strong ties with major banks in Europe and the US. Some of our collections are stored in their vaults, and they offer secure services for high-net-worth individuals. For example, American Express is known for its elite financial services," Manager Zhang explained.
Jiang Hai had heard of American Express, but he was less familiar with JP Morgan Chase or the other banks Manager Zhang mentioned. After some consideration, he decided to go with American Express, and Manager Zhang quickly arranged it.
An hour later, Jiang Hai held a sleek black titanium alloy card in his hand, emblazoned with a Roman soldier's head—the American Express Centurion Card.