Selling at auction
A guide to watches and jewellery
Hollywood actress Ellen Barkin's jewellery collection, which she accumulated during her six-year marriage to billionaire Ronald Perelman, will go under the hammer at a Christie's New York auction on October 10. Although only a select few can boast of a collection as valuable as Barkin's, you may own long-forgotten treasures - be it a Cartier watch or a diamond pendant - that have the potential to sell well at an auction.
Pansy Ku, business manager of Christie's jewellery and watch department, says diamonds - white and coloured ones - with certification, always have a strong resale value, regardless of trends. Vintage jewellery from the 1920s, 30s and 40s also has good resale value, especially pieces from jewellers such as Cartier and Van Cleef & Arpels. Non-branded vintage jewellery can be popular if they are unique pieces and have quality workmanship.
If you have watches or jewellery you want to sell, make an appointment with an expert from an auction house to bring in your items for appraisal. The auction house will decide on a price range for the item. Be prepared for a lower amount than what you originally paid, since watches and jewellery depreciate once they're bought, even if they've never been worn.
Ku says price estimates serve as both a realistic valuation of the item and a sales strategy to generate interest. 'Bidders are drawn to getting good deals, an attractive price estimate draws more interest,' says Ku.
After the evaluation, the auction house and client come to an agreement on the reserve price (the lowest price you're willing to accept and below which the item won't be sold). The amount is confidential between you and the auction house.
Some items are sold without a reserve, which means that the owner will sell the item regardless of the price. Ku says selling without reserve is taking a gamble to a certain extent. 'In some cases, the item may fetch many times higher than our higher estimate price. We may recommend clients to sell without reserve if the item is out of fashion, or the value of the piece isn't that high to begin with.'
Gold is coming back strong. It was out of fashion in the 90s, but the past few seasons have seen a revival. South Sea pearls were sought-after a decade ago, but their ample supply in recent years has affected their resale value. On the other hand, natural pearls are becoming popular again.
Although coloured gemstones such as pink sapphires are popular, the three most traditional coloured stones - emeralds, sapphires and rubies - are increasingly difficult to sell well at auctions, unless they're natural, branded (with an ID number) or special designs. The ones that have been subjected to treatment have much lower resale value.
Before leaving your item with the auction house, you'll sign a consignment agreement, which grants the auction house the rights to sell the item on your behalf. The auction house will profile the item in its catalogue and produce a condition report on the item.
One of the perks of selling through an international auction house is the publicity your watches and jewellery will receive before the sale. Your item will be available for viewing by prospective buyers several days prior to the auction. The piece may even go on a tour to other cities.
Overseas buyers can bid for your item through absentee or telephone bids, which increase the chances of your item being sold at a favourable price. Ku says items not sold in one auction may sell very well in another.
If you want to sell at auction, allow at least three months before the sale because the auction house needs time to appraise, evaluate, and catalogue your item before it's ready to be sold. If it sells on the day, you'll receive payment about 30 days after the auction and you have to pay a commission to the auction house. Other fees include insurance, illustration (catalogue and photography) and shipping fees. However, you will only pay administrative fees if your item isn't sold.
Contact list
Christie's
Sotheby's
