Jewels Created for Princess Diana Going up for Auction in New York

A diamond and South Sea pearl necklace and pair of matching earrings created for the late Princess Diana—and worn by her just once, at a 1997 English National Ballet performance—will go up for auction in June and could fetch as much as US$15 million.

The auction will take place not long after the coronation of Diana’s ex-husband, Charles, who will become king in a ceremony on Saturday at Westminster Abbey in London.

The necklace has clusters of pearls and 178 diamonds. Courtesy of Guernsey’s

New York-based auctioneers Guernsey’s will oversee the sale at Manhattan’s Pierre Hotel on June 27, according to a news release. The jewels were speculated to have been commissioned by Dodi Fayed, Diana’s paramour, before the couple perished in an August 1997 car crash, a Guernsey spokesperson said.

Along with its clusters of pearls and 178 diamonds, the necklace is significant because of Diana’s mystique—and the scarcity of her possessions on the market, according to Arlan Ettinger, president and founder of Guernsey’s.

“This is the only major jewellery of Diana’s that will ever be sold,” Ettinger says. “The family is not about to start parting with treasured items from their late mother.”

The prized jewels are being sold by Mark Ginzburg, a Ukrainian real-estate developer who bought them in 2009 at Guernsey’s and now is being forced to sell because of the war against Russia

Guernsey’s declined to disclose how much Ginzburg for the set.

One report, however, said Ginzburg paid US$632,000, which Penta couldn’t independently confirm.

“The family’s success in Ukraine enabled them to buy the jewels, but their business has been largely devastated by the war,” Ettinger says. “This is a motivated sale.”

The Crown Jeweller, which has created baubles for the Royal Family for centuries and at the time was the venerable British jeweler Garrard, designed the necklace for Diana after meeting with her in early 1997, according to Guernsey’s. Two years after Diana’s death, her family authorised the Crown Jeweller to sell the necklace.

Diana “didn’t have much in the way of jewelry while she was princess,” Ettinger says. “Most of what she wore was jewellery owned by the crown, given for an occasion, but not permanently.” Once Diana divorced then-Prince Charles, “she emerged as her own woman, and the fact that the Crown Jeweller created this for her is a big deal.”

Once the necklace was completed, Diana wore it to a June 3, 1997, premiere of Swan Lake by the English National Ballet. She returned the necklace to the jeweller after the ballet so he could complete a set of matching earrings, although Diana never had a chance to wear them, Guernsey said.

“It has been said that the Princess of Wales—who was also England’s Patron of Dance—was photographed more often on that occasion than at any other time of her life, with the exception of her wedding day,” according to Guernsey’s.

Next month’s sale will mark the third time the necklace has changed hands. Ettinger handled the first sale in 1999; the buyer was Houston furniture magnate James McIngvale. Ten years later, McIngvale put the necklace up for auction with Ettinger and Guernsey’s, which is when Ginzburg bought it.

The diamonds and pearls on their own “are intrinsically worth at least US$1 million to US$1.5 million,” Ettinger says. “But what they’re worth on the market is hard to predict.”

He estimated the necklace may sell for anywhere from US$5 million to US$15 million, though there was no official range provided by the auction house.

“This is connected to someone who was one of the most admired and accomplished women in the world,” Ettinger says.

Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.

Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.

“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.

CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.

Sydney

Sydney’s median house price is $1,414,229 and the median unit price is $839,344.

Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.

Melbourne

Melbourne’s median house price is $935,049 and the median apartment price is $612,906.

Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.

Brisbane

Brisbane’s median house price is $909,988 and the median unit price is $587,793.

Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.

Adelaide

Adelaide’s median house price is $785,971 and the median apartment price is $504,799.

Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.

Perth

Perth’s median house price is $735,276 and the median unit price is $495,360.

Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.

Hobart

Hobart’s median house price is $692,951 and the median apartment price is $522,258.

Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.

Darwin

Darwin’s median house price is $573,498 and the median unit price is $367,716.

Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.

Canberra

Canberra’s median house price is $964,136 and the median apartment price is $585,057.

Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.

Jewels Created for Princess Diana Going up for Auction in New York

New research suggests spending 40 percent of household income on loan repayments is the new normal