The thrill of an auction can be more about tactical decision-making than just acquiring rare items. Whether bidding on a Kashmir sapphire in Geneva, a Kentucky Derby-winning horse in County Kildare, or a classic Ferrari, the strategy often unfolds before the auctioneer announces the first lot.
Benoît Repellin, the jewels director at Phillips, along with Henry Beeby, the CEO of Goffs, suggest that successful bidding is a product of thorough preparation. Experienced collectors benefit from understanding the asset, evaluating its worth, and knowing precisely when to bid or step back.
To navigate the auction environment successfully, familiarity with the process is essential.
Understanding the auction process
“Auctions can be daunting for those unfamiliar,” Repellin notes. “However, they are accessible to all.” For seasoned bidders, grasping the basics is vital. Beeby emphasizes that comprehending the Conditions of Sale is crucial prior to making a bid. This document lays out the sale’s rules, covering aspects such as descriptions, payment conditions, and commission fees.
Many auction houses now offer diverse participation methods: in-person, online, by phone, or via absentee bids. Absent bidders can set their maximum price beforehand, while their representatives can also bid on their behalf.
Preparation for auction day
A common consensus among leading auctioneers is that successful bids stem from meticulous preparation before the event. For jewelry aficionados, Repellin advises looking beyond catalog estimates to gather all pertinent information regarding a piece. “We provide insights such as laboratory reports, restoration history, damage, and gemstone quality for each item,” he clarifies.
Furthermore, specialists can share additional media, assess condition, and offer market context for higher-value acquisitions. Bidders unable to attend viewings can seek further details from the auction house ahead of the event.
Buyers are encouraged to utilize independent experts during pre-sale exhibitions. This allows collectors to perform their due diligence and consider multiple perspectives before placing bids.
For those venturing into new collectibles, Beeby recommends hiring established advisors. “Employ a professional to navigate the complexities, much like one would with a home inspection,” he advises. This practice is prevalent in various fields. Buyers of thoroughbreds consult trainers and agents, while patrons of art, jewelry, and classic cars often seek trusted advice regarding condition, rarity, and long-term value.
The true cost of acquisition
The hammer price is merely a fraction of the overall cost. Buyers must factor in the buyer’s premium and any extra charges, which differ among auction houses and categories. “Understanding the commission and buyer’s premium beyond the hammer price is crucial for auction preparation,” says Repellin.
With varying fee structures, collectors should thoroughly review the Conditions of Sale to calculate their total costs prior to bidding.
Developing an effective bidding strategy
There is no single correct approach to bidding, but rather one that aligns with individual preferences. Some participants thrive in the vibrant auction room, while others prefer the control that online or telephone bidding offers. Beeby promotes attending auctions in person when feasible, citing it as the most transparent method to engage. “Being present allows observation of other bidders and the auction dynamics,” he adds.
The digital shift has broadened access significantly, especially post-pandemic. Repellin acknowledges that social media has transformed bidder engagement, providing educational resources for newcomers to understand auctions better. “Many now leverage these platforms to deepen their knowledge of jewelry and gemstones, arriving better informed,” he states.
Avoiding common mistakes
A prevalent oversight involves registration. Repellin advises first-time buyers to complete their KYC information well before the auction to avoid interruptions. Leaving registration until the last moment risks missing out on bidding entirely.
Certainly, once bidding commences, maintaining discipline is vital. “Arrive with a predetermined price and resist emotional bidding,” recommends Repellin, noting how enthusiasm can cloud judgment. Beeby underscores this with the advice to create a shortlist and finalize a maximum price. “Stick to your budget; there will always be another opportunity,” he affirms.
This self-control is crucial given the emotional environment of auctions, where competitive spirit often intensifies. “Many bidders are conscious of their competition, fostering a sense of pride in the process,” Repellin concludes.
Buying at auction as an investment
While interest in asset appreciation is rising among bidders, both experts caution against purchasing solely for investment. “Buyers should not prioritize investment over passion,” Repellin advises. He emphasizes that the most exceptional collections are cultivated over time with care and genuine interest. Ultimately, he advocates for acquiring pieces that resonate personally: “Select what you appreciate.”
