Fresh off of their $16B purchase of Tiffany & Co., LVMH has entered into an agreement to purchase a 1,758-carat diamond from the Lucara Diamond Corp. Cleverly named Sewelo, meaning ‘rare find’, the diamond was purchased for an undisclosed sum by the fashion behemoth.
It is unknown what LVMH plans to do with this massive gem, although we can be assured that their marketing department will have a field day. The company has already announced that the diamond will embark on an upcoming world tour for both press and potential clients. Rumors surrounding the diamond’s quality might derail the celebrity factor associated with its acquisition. Pictures show that the diamond is still covered in a rough layer of carbon, which some experts suggest will result in lower quality. While some believe they will inevitably break down the diamond into individual pieces for signature jewelry, others believe they will ride the wave of publicity to strategically maximize upon its already premier label.
It seems as though the company most known for luxury leather goods has gone all-in on their transition into the world of fine jewelry. Within 2 months, LVMH has purchased both a major player in the lucrative jewelry market and the largest diamond discovered since 1905. It will be interesting to watch how Tiffany & Co.’s new parent company will evolve their role as a major new player in this sector, but one can be certain that fashionistas and adoring fans alike will be watching with gleaming eyes.