Why Louis Vuitton Bought the World's Second-Largest Diamond

Louis Vuitton said Wednesday it purchased the Sewelô diamond, the second largest diamond ever discovered, for an undisclosed amount. My fiancé couldn’t be reached for comment.

The Sewelô is worth more than bragging rights. For Louis Vuitton, the largest luxury brand in LVMH’s stable, the 1,758-carat diamond could help it crack the top five fine jewelry retailers, per the FT.

• Michael Burke, chairman and CEO of Louis Vuitton, called fine jewelry “one of the highest-growth categories we have, if not the highest.”
• Louis Vuitton boasts a 166-year history, but it didn’t start selling fine jewelry until 2001.

So who gets the ring? No one yet—and Louis Vuitton says it won’t shave the Sewelô down to a wearable size until a buyer has been confirmed. Underneath the diamond’s greasy carbon exterior, gemologists estimate it could yield a 904-carat cushion cut or several smaller gems.

My takeaway: Louis Vuitton gained decades of credibility with one purchase, and there’s only room to grow from here. Brand name jewelers only make up 20%–23% of the high-end jewelry market, per analysts cited by the FT.