One great way to purchase diamond jewelry is to head to an auction. The best auctions happen in the best cities, like London, New York, Paris, Hong Kong and Monaco. The benefit of buying at auction is that you get to purchase a really special piece of jewelry that was possibly owned by a celebrity or even royalty. Whatever the case is, it can help to know some of the ins and outs of buying at auction. Here is how it’s done.
Keep An Eye Out For Major Jewelry Auctions
Some jewelry auctions don’t necessarily happen in a core group of cities. Sometimes they can happen closer to you. Even if they are occurring in another city, many auction houses open up online bidding. You can also call in with your bids by linking up with a proxy bidder on the floor. In order to get to the auction, you need to know when they are, so you may want to start doing your research online and create a calendar of all the auctions that you are interested in.
Know What The Estimate Is
At auction, there is the value of a piece of jewelry and then there is the auction estimate. This is a number that the auction house will list, because they hope that people will bid up to that number and past it. It’s a way for the auction house to cover their costs, and the seller’s costs – with fees. Plus, some items may be more desirable than others, so you really want to do your research if you don’t want to miss out on some of the best pieces.
You Say Good Buy And I Say Hello
One of the biggest questions people have about items at auction is whether something is a good buy or not. Sure, something may look like a good buy, but what is its origin or provenance. Is it real? Is there speculation that the diamonds are fake? Who was the previous owner? Do you like the jewelry? These are important questions, because you should never bid on something if you don’t know its origin. Moreover, you should never bid on something if you don’t like it.
The Reserve Price
Another important consideration when buying at auction is the reserve price. The reserve price is basically the minimum price that the auction house is willing to unload for a particular item. If a piece isn’t getting enough bids and doesn’t reach the reserve, the auction house will close the sale and wait until it gets enough demand. The reserve price is in place to protect the seller, and to make sure the seller gets the minimum he or she wants for the jewelry.
As you can see, there are a lot of things to keep in mind when purchasing jewelry at auction. What you have to realize is that going to the auction house requires doing a bit of your own due diligence and research. Moreover, you may want to bring a friend. In the end, a friend can be great company at the auction and a friend can also be a great sounding board if you are on the fence about a particular piece of jewelry.