National Jeweler reports that a 1.77-carat fancy purplish-pink diamond, which failed to sell in Rio Tinto's 2008 Argyle Pink Diamond bid, was “reborn” recently as a 1.61-carat, radiant-cut, fancy purplish-red gem, after it was purchased by Scarselli Diamonds of New York.

Argyle pink diamonds, mined from the Argyle mine in Australia, are considered difficult to cut, but Scarselli Diamonds decided to take a chance and trust the stone to gemologist Joshua Sheby, who turned out the new $2 million worth design, which has quite literally sparked the industry's interest.

"It was a just a matter of readjusting some of the angles...and bringing out that red component," Sheby told the National Jeweler.

Argyle Pink Diamonds, which is the mining subsidiary of Rio Tinto, issued a letter of rarity for the diamond, stating that it is only the second diamond larger than 1.5 carats granted the Gemological Institute of America’s (GIA) "fancy purplish red" grading, to be featured in an Argyle bid in the past decade. The stone, added the company, has been named "the Kimberley Red."

A company statement further said that the diamond holds special significance, as mining in Argyle will soon cease.

The diamond's future, however, is unclear at this time – it may be auctioned off or sold to either a retailer, a collector or an investor. According to the company, the rarity of the diamond also makes it a good candidate for a museum purchase.