19 Aug Jewelry Auctions vs. Selling Direct
When one of our clients has valuable items to sell (such as Harry Winston diamond estate jewelry), we sometimes are asked whether selling the item via an auction house might be the better option. There are several factors to consider when deciding whether to sell estate jewelry to a direct buyer like C. Blackburn Jewelers or using an auction house such as Christie’s or Sotheby’s.
For example, you’ll want to decide how quickly you want to sell your item and receive payment. If you auction your jewelry, you could be looking at a wait of up to 6 months or more. However, the most important factor to consider are the fees involved. Let’s begin with a quick overview of the auction business.
Auction houses have long been the primary vehicle for buying and selling large carat diamonds, precious gemstones, important estate jewelry, and limited-edition timepieces. To sell the world’s most treasured fine jewelry and watches, an auction house needs to have access to both the items and the clientele who might be interested in buying them.
Auctioning diamond jewelry and watches is thus a carefully coordinated dance that involves bringing the items to the attention of the proper audience, one that will have the greatest likelihood of bidding on a particular lot.
This means that auction houses must spend a lot of time, energy, and work in promoting their auctions and lots — the cost of which is taken from the final hammer price of the diamond jewelry or timepiece.
Understanding Auction Commision Fees
The average auction commission is 25%, which covers marketing and insurance costs. On top that there may be additional charges for such things as photography, restoration, and shipping. All things considered, you may be receiving 30% less than the final hammer price. For example, if your item sells for $30,000 at auction, the cash amount you receive could be $21,000.
Large auction houses also attach a “buyer’s premium” of around 25% to items sold for less than $300,000. That is an extra 25% that the buyer must pay on top of the final hammer price. Buyers will take this fee into consideration when bidding on your item. It thus can substantially reduce their bid amount and the final hammer price.
If you have an incredibly rare diamond, such as a 5-carat vivid pink flawless, or a nearly one-of-kind timepiece, such as Eric Clapton’s Patek Philippe 2499, then an auction might be a good alternative — as you could attract international collectors and a buyer frenzy to compensate for the high auction fees. However, for the vast majority of the diamonds, watches, and jewelry on the market, it doesn’t pay to send them to auction.
Sellers in San Diego often choose C. Blackburn Jewelers because they can sell their item quickly with 0% fees, while at the same time be assured that they are getting a generous cash price. They also feel confident in the fairness of the transaction, because every seller deals directly with owner, Carl Blackburn, who has been one of San Diego’s most well-known estate jewelers for over a decade.
Read our testimonials to learn what our clients have to say about their experience.
To get a preliminary cash appraisal of your estate jewelry, contact C. Blackburn Jewelers today. Give us a call at 858-251-3006 or send a text message with photos to: 619-723-8589.
For those sellers who still would like to explore how to auction diamonds, jewelry, or watches, we have compiled a list below of the most important auction houses to consider when selling expensive diamond jewelry and timepieces.
Sotheby’s – Auction Jewelry & Watches
Founded in London in 1744 by bookseller Samuel Baker, Sotheby’s is the fourth oldest auction house in the world, and has always been a leader in the auction world. Now with ninety locations in forty countries, Sotheby’s was one of the first auction houses to recognize the importance of being a global presence — they were the first to hold auctions in Hong Kong and the former Soviet Union.
Sotheby’s boasts 250 auctions each year, with sales in over seventy categories, including fine wine, international real estate, furniture, Old Master paintings, and of course, estate jewelry and watches. In addition to their global presence, Sotheby’s also offers BIDnow, a service that allows clients to watch auctions live online and place bids in real time from anywhere in the world.
With a deeply established client base all over the world, Sotheby’s is certainly one of the most successful auction houses of all time.
Christie’s – Auction Diamonds & Watches
Christie’s has been the world’s top auction house for many years. Another global presence, Christie’s now has over eighty offices in forty-three countries, and a network of buyers and sellers that is unparalleled in the auction world.
Founded in 1766 by James Christie, the storied auction house has sold fine and decorative arts, including jewelry, collectibles, and wines, for prices ranging from $200 to over $100 million.
Auctioning jewelry and watches has long been a mainstay at Christies. Their watch division, Christie’s Watch Shop, not only offers some of the most important watches in the world, but now does a significant part of its business through Christie’s Private Sales, connecting collectors with specific watches outside the traditional auction format.
Jewelry sales are also moving into the 21st century for Christie’s. With a philosophy based on accessibility to art buying, Christie’s has been expanding its online-only auction platform, with dozens of online-only sales last year. Over forty percent of buyers in these sales were new to Christie’s, showing that their pursuit of the all-important client base successfully continues into the future.
Heritage – Diamond Jewelry Auction
Established in Dallas in 1976, Heritage Auctions is the largest auction house founded in the United States. A privately-owned company that now has offices throughout the US and in Europe, Heritage Auctions is the largest auctioneer of collectibles in the world, combining live internet bidding and proxy bidding with traditional floor auctions for an unprecedented level of participation in their auctions. In 2018, they boasted over 1 million registered online bidders.
In addition to collectibles, Heritage is one of the largest and most respected auction houses that handles fine jewelry. With a mission statement that includes the claim that “unbiased information can and should be available to all,” Heritage Auctions prides itself on its transparency, integrity, and expertise. Their addition of four respected jewelry experts to their team has made the fine jewelry department one of the largest in the firm.
Notable pieces from past sales include a captivating Kashmir sapphire, diamond, pink gold ring that sold for $175,000. The modified, sugarloaf-shaped sapphire cabochon weighing 12.70 carats was set in 14k pink gold with rhodium finished accents, with single cut diamonds accenting the featured stone.
Another beautiful ring that sold was a Cartier diamond set in gold, featuring a stunning, 3.01 carat round brilliant-cut diamond, enhanced by full-cut, channel set diamonds on the top of the 18k gold shank. The GIA report on the center stone stated E color, VVS1 clarity, and the piece sold for $77,500.
What About Online Jewelry Auctions?
Recently a new type of auction house has emerged: the jewelry auction website. These are website-only businesses dedicated to auctioning diamonds, jewelry, and expensive watches.
The problem with these websites is that unlike traditional auction houses the people bidding on items are industry buyers. At an auction like Christie’s or Sotheby’s the bidders are private buyers (i.e. members of the public). But at an auction website the bidders are professional buyers who plan to re-sell your item to a jewelry stores. The online auction is thus taking a 20-30% commission for connecting you to an industry buyer — which is entirely unnecessary.
Get a Cash Offer Today
Why get 20-30% less for your diamond jewelry or watch, when you can sell directly to C. Blackburn Jewelers of La Jolla with 0% fees?
Give us a call at 858-251-3006, or send a text message with photos to: 619-723-8589. You also can contact Carl Blackburn directly via email by using the contact form below.
C. Blackburn Jewelers not only buys valuable diamond estate jewelry. We buy Asian gold chains and rings, broken gold jewelry, and any item fashioned in 14k-24k gold or platinum. You can also visit our boutique La Jolla jewelry store to shop for estate jewelry and order custom jewelry.
