$10M diamond going up for auction in Toronto

It is just a bit smaller than the width of a Loonie, weighs more than 50 carats, costs an estimated $10 million and would be a spectacular piece of jewelry with which to propose.

It may have the lackluster name of "important loose diamond", but it will be the largest diamond to ever be sold in Canada when it is auctioned off in a couple weeks.

"I was actually stunned," says managing director of Ritchies Auctioneers Kashif Khan to the Toronto Star. Khan, who was also a part of last year's pink diamond auction, admits to staring at this loose diamond for 10 minutes the first time he saw it. "It was so lively and brilliant."

Ritchies Auctioneers is selling the diamond along with 163 other pieces of fine jewelry, valued between $1,000 and $1 million, at the Royal Ontario Museum Nov. 13. Needless to say, the loose diamond is the centrepiece of the auction and will go under the gavel last.

But in case this diamond isn't your best friend, the auction also includes a $500,000 red ruby necklace and a $200,000 Piaget watch.

The diamond's owner is only described as "a Belgian hotelier," who needs to raise money in the slumping economy, says Khan to the Star. "He had it for a while primarily as an investment...It's literally been in a safe for about 10 years."

Khan also says a lot of the items, which are from Europe, Asia and North America, come from bankruptcies.

While this diamond may be appraised at $10 million, Khan realistically expects it to go for around $4 million at the auction. Circa, the company he used to be a part of, sold a rare pink diamond last year for a record $2.3 million even though it was estimated to be valued between $8 and $12 million.

Shortly after this sale, Circa Auctions was sued by U.S. jewelry buyer Circa Inc. for copyright infringement and Circa Auctions has since dismantled. Khan and his partner announced this week they had purchased the Ritchies name from the trustee in bankruptcy for the former auction house.

"I've never dealt with a diamond like this before," says Ritchies' lead gemologist Helmut Koenig to the Star. "What's exciting is to have it come to Toronto. This is something you'd be more likely to see in Dubai or Hong Kong."

Khan tells the National Post he believes about 20 people will bid on the diamond, but "It always comes down to two."

(Ritchies Auctioneers photo)