Jewel Auctions-Under the Hammer!

From jewellery to watches, auctions are the most talked about these days. Rings, necklaces and other kinds of extraordinary jewels are at the centre of many auctions that are being held across the globe. Art collectors and leading jewellery houses are paying unimaginable prices to buy these special jewels. There are many reputed, world-renowned auction houses like Sotheby’s, Christie’s and Bonhams, which are known for conducting jewellery auctions in London, New York, Geneva, Hong Kong, etc.

Recently, industry records were broken as Christie’s auctioned de GRISOGONO’s ground-breaking necklace, ‘The Art of de GRISOGONO, Creation 1’, at the landmark Magnificent Jewels sale in Geneva, with the necklace achieving the price of CHF 33,500,000/US$ 33,701,000. This breathtaking masterpiece designed by Fawaz Gruosi, Founder and Creative Director of de GRISOGONO, features a 163.41-carat Flawless D-Colour diamond, cut from a historical 404-carat diamond. This diamond extracted from the Lulo mine in Angola by the Australian mining conglomerate, Lucapa Diamond Company. This is the largest ever emerald-cut diamond offered at any auction.

There has been a quantum increase in jewellery auctions in the last few years. What would be the reason behind this jump? David Bennett, Worldwide Chairman of Sotheby’s International Jewellery Division, answered: ‘Jewellery auctions have gone from strength to strength in recent years, and today there is a completely global market. We are pleased to be welcoming new buyers all the time; as many as 20 per cent of those purchasing jewellery in our sales are participating for the first time. In addition to this globalised market, it is also worth noting the importance of digital platforms, including our own website, Smartphone applications and social media.

These new channels offer new ways for us to connect with our clients and sharing knowledge with collectors. Of course, online bidding and online sales also allow us to open up new opportunities.’

Jewellery is also increasingly being considered an art form, with a growing number of collectors building a collection of jewels as they might build a collection of art. This too is one of the reasons behind the increase in auctions, feels Jean Ghika, Director of Jewellery, Bonhams UK & Europe. He further said, ‘There has undoubtedly been an increase in jewellery auctions in the past few years, both in terms of the levels of interest and the frequency of auctions. This renewed interest in jewellery has perhaps been heightened by many national museums and institutions staging exhibitions on specific makers, eras or showcasing important collections.’

Minal Vazirani, Founder of Saffronart that conducts jewellery auctions in India, said, ‘There has been a steady increasing interest in jewellery auctions over the last several years as buyers are looking to the cornerstone of what auctions offer; exceptional pieces with reputed provenances, verified information, and jewels that have an element of rarity.’

Setting the Market Trend
As mentioned earlier, auctions have been influencing the trends in the market with their phenomenal result. One of the prominent features of all the auctions is the transparency and public nature of the way these are held. Thus, they play a vital role, acting as an indicator, often providing a platform for emerging trends.

Talking more about the transparency and how auctions shape market trends, David Bennett said, ‘Auction houses are part of a broader landscape which also includes retailers, the jewellery trade and all the different actors in the international market. Thanks to the transparency and public nature of auction sales (about which information is published in our catalogues), anyone can observe and learn about the world of auctions. Press coverage of auctions and records achieved also provides exposure and generates interest for the market as a whole.’

Sharing similar thoughts, Minal Vazirani said, ‘Auctions provide buyers with a transparent marketbased platform that allows a public bidding process to determine the selling price for a piece of jewellery, whether its value lies in the inherent quality of the gemstones, the design, the provenance, or even the history. To provide information to potential buyers,

auction house experts publish price estimates as a guide that indicates fair auction market prices, so once the auction commences, the winning hammer price for a piece usually falls within this estimate. The final price is governed by several factors but rarity or uniqueness is often the determinant of value.’

She continues, ‘Saffronart initiated India’s first jewellery auctions on the same auction platform that we built for art, in order to bring greater transparency, access and appreciation for modern as well as historic jewels. By linking jewellery traditions to art, Saffronart has forged strong links between India’s rich design legacy and one of the most sophisticated jewellery markets in the world. Saffronart provides a convenient, transparent and secure platform to buy and sell jewellery, and also engages international jewellery collectors with India and its rich jewellery traditions.’

Jean Ghika feels, ‘The global nature of the jewellery market now means that wherever an auction takes place it is possible for a buyer from any location to participate, so the actual location of the sale is not as important as perhaps it once was.’

Lately, there has been a strong demand from confident highnet- worth individuals (HNIs) from Mainland China who have immense knowledge on expensive, rare jewellery. As per the industry analysts, Hong Kong is gradually becoming a hotspot for jewellery auctions after Geneva.

Talking about the demand from Mainland China, Jean said, ‘The majority of buyers are female who have greater buying power as there is an increase of self-made wealth professional women. They are also becoming savvier in their choices.’ David Bennett said, ‘As the Chinese economy and the wealth has grown, more people have had the opportunity to purchase fine and rare jewels. We have noticed during our exhibitions and information events in Hong Kong and across Asia everincreasing understanding and interest among clients from China and other Asian countries for rare and fine jewels.’

Earlier this year, Sotheby’s set the record for any gem ever sold at an auction, with its $71 million sale of the 59.6-carat Pink Star to Hong Kong-based jewellery retailer Chow Tai Fook Jewellery Group Ltd. Giving some relief to the high-end diamond market amidst the volatile auction season, a 14.93-carat pink diamond ring was sold for about $32 million at Christie’s in Hong Kong recently.

Also, the tax structure and growing purchasing power in Hong Kong has resulted in HNIs buying jewellery at auctions. Adding further Minal said, ‘Low tax rates, an increase in purchasing power, and a preference for exquisitely crafted jewellery have seen many high net worth individuals from Hong Kong purchase jewellery from auctions. Jewellery offered on auction is often set with gemstones of exceptional quality, which are highly coveted by buyers from the Chinese market.’

‘We have seen strong demand for period, signed jewellery, with a focus on pieces from the first half of the 20th century. The most desirable being: Cartier, Van Cleef & Arpels, Boucheron, Bulgari, Tiffany and Chaumet,’ She added.

In September 2017, Bonhams sold a pearshaped, fancy-intense,rare blue diamond, weighing 4.03 carats for £2,685,000. However, other than fancy colour diamonds, colour gemstones always receive tremendous interest especially, the gemstones that have a story behind them. Talking about their demand, David Bennett said, ‘We have seen continuing strong demand for the finest colour gemstones: Burmese rubies, emeralds from Colombia and sapphires from Kashmir. As we celebrate the tenth anniversary of Noble Jewels sales in Geneva, we are delighted to see that collectors are as fascinated as ever by jewels of historic importance or those which have been part of an important aristocratic collections. We also have observed great enthusiasm for signed jewels created by the world’s greatest jewellery houses such as Cartier, Van Cleef & Arpels and Harry Winston. In particular, signed pieces from the Art Deco period have achieved very impressive prices at auction.’

Driving Factors for Demand: Is it rarity or provenance?
It all depends on a buyer to what exactly he or she is looking for in a piece of jewel. It could be either rarity or provenance or a mix of both. Commenting on rarity and provenance, Minal said, ‘Buyers—whether established or new—will always look for a piece that is unique and significant. It could either be created by a leading jewellery house such as Van Cleef & Arpels or Cartier, or it could have an important provenance attached to it, which plays a big role in the decisionmaking process. Based on design, wear-ability and functionality, the piece gains an added appeal. In addition, colour is of immense importance in determining the appeal of gemstones set in jewellery.’

Explaining further, he said, ‘A good example which brings together many of these factors is a 33.63-carat pink diamond, mounted in a ring by Harry Winston, which set a record for a Fancy Light Pink diamond during our Magnificent Jewels auction in Geneva in November 2017. It is a stunning diamond with beautiful elegant Fancy Light Pink colour, bearing the signature of Harry Winston and boasting of an impeccable noble provenance; it had been treasured by the same European noble family for over forty five years.’

Perception of Jewellery
Over the years, one of the most important factors that has attracted people to jewellery auction is the fact that jewellery is being perceived as a piece of art. Many jewels are judged for their aesthetic and design elements in addition to the stone content.

With an increase in seminars, conferences, exhibitions and literature on jewellery, young collectors are able to make informed decisions about purchasing jewellery, and several younger collectors are now expressing an interest in acquiring jewellery.

Further adding on the perception of jewellery, David said, ‘There might not be the same opportunities now-a-days to wear very visible expensive jewels frequently in public but the passion and desire with which jewels inspire us is still very much in evidence. Jewels are extremely personal – they are worn close to the skin and often purchased at important moments in life.’

Rishabh Tongya said, ‘People aspire to own something that is rare and fine jewellery and vintage jewellery are among them. People want to be seen owning them and soon, similar items are sought. So the similar cycle of aspiration and preference continues. It’s human nature to get hold of things that are precious and extraordinary.’

Online Bidding
As far as bidders and buyers are concerned, online auctions give reach and accessibility in a much larger manner.

‘Online bidding is growing in popularity with many buyers preferring to participate in sales via their computer screens. This makes the auction experience accessible and in turn attracts a younger group of buyers. The auction market, although steeped in tradition is embracing cutting edge technology which only serves to underline its relevance in the Internet age,’ said Gikha. Digital technology has brought the world closer and made the distance shorter. Everything is a click away. Even the auction industry has adapted to it well.

However, Bennett feels that offline bidding has its own charm and online can never match the atmosphere. He said, ‘While digital changes are very significant, I would argue that there is still something very special about being present in the sale room and bidding in person, so I think there will always be people who choose to come in person and experience that atmosphere – there’s nothing else like it!’

In the recent past, several auction houses have expanded into the online realm, making the bidding process far more convenient for buyers around the world.