How to buy jewellery at auction: Strategies, goals and what to avoid

You will never find such a variety of jewelry for sale as at a jewelry auction. You can bid on anything from antique jewelery from the 19th century to contemporary masterpieces, exquisite loose gemstones or pieces of exceptional provenance that have been owned by celebrities or royalty. With so many choices, it can be difficult to know where to start, which intimidates first-time buyers. You can find everything from simple, everyday earrings costing under $5,000 to record-breaking diamonds costing more than $50 million. (The record price achieved at auction went to the Pink Star, a 59.60-carat bright pink diamond, flawless on the inside, which sold for $71.2 million at Sotheby’s Hong Kong in 2017.) Auction houses host events throughout the year Live and Online Auctions The largest take place in spring and winter.

Joanna Hardy, a former auctioneer at Sotheby’s who is an in-demand jewelery consultant and author, is an expert at helping clients navigate auctions through her work at Omnēque, a London-based vintage jewelery platform. In a Zoom interview, she spoke to us about the sometimes confusing world of auctions and shared her best practices to help you find – and win – pieces you’ll love.

Why buy at auction instead of in a store?
Contemporary designs are sold at auction for lower prices than in stores – sometimes for less than half the retail price. Even the higher prices for more iconic pieces won’t reach retail levels. For example, an 18k yellow gold Cartier Love bracelet retails for $6,900, but several pieces have recently fetched less than $5,000 at auction. Loose, unsigned stones also typically cost less than from a dealer. If you don’t have connections with jewelers, sometimes you can only buy pieces at auction. JAR is one of the most in-demand contemporary designers, but he produces very few pieces each year and only for a small, well-known clientele. A new JAR collector would have to buy at auction.

At the higher end, pieces with a unique provenance, such as crown jewels or items owned by celebrities and notable collectors, are usually sold at auction rather than in stores to fetch the highest prices.

Try to experience plays in person if you can.
While auction houses do a great job of photographing pieces and sharing details with distant customers, Hardy says nothing beats seeing jewelry in person. The scale and dimensions of a piece are extremely important. You want to be sure that the piece is the right size for your wrist or finger, that you like how a necklace wraps around your neck, or that an earring is the right size for you (or isn’t too heavy to wear).

The scale of a piece can sometimes be misleading on a white screen. If you wish to resize a ring, you must make a note of where the piece’s hallmarks and signatures are located, because if you resize a ring and lose these markings, the piece will immediately lose value. Not to mention that “each screen is a little different in terms of color,” says Hardy. “Just note that the color you see on your screen when you’re buying at auction may not necessarily be the color of the gemstone you’re buying.”

You can also examine the details on site. To assess craftsmanship, Hardy looks at the back of a piece, the hardware, and how the piece is attached. If a clasp or earring clip appears loose, that’s a cause for concern. In addition to examining lots that have caught her eye in an auction catalogue, she may find standout pieces that she has overlooked online.

Do a condition check yourself.
If you can’t make it to an auction house, she recommends that the house send you videos of the piece in several different light sources (white light and sunlight, of course). Have someone of a similar size try on the piece so you can see how it looks worn. Significant gems should come with certificates from independent laboratories. Each piece will have a condition report detailing its overall condition and any markings that can be viewed in person and online.

Set a bid limit.
Once you’ve decided on pieces to bid on, it’s time to determine what you’re willing to pay. Since there are few things as exciting as finding that elusive piece of jewelry you’ve been looking for, it’s easy to get carried away and overpay. “You must never want anything desperately. You can’t do the desperate part. You must be pretty cool,” says Hardy. “You have to have an intersection. You don’t want to buy something and then regret it. … Make sure you have a limit because there will always be another auction and you will fall in love with something else.”

Note that the price you bid on – the hammer price – is not the final price you will pay. The final amount includes a buyer’s commission, which can range from 13% to almost 30% depending on the hammer price, as well as applicable taxes, shipping costs and overhead premiums.

Even if you’re bidding at home away from the busy live environment, Hardy urges caution: “The auctioneers are pretty persuasive, and they can be very persuasive online,” she says. “It’s like having a face-to-face conversation with the auctioneer.”

Register beforehand.
Buying jewelry at auction isn’t as easy as walking into a store and purchasing something with a credit card. Laws require auction houses to register bidders and verify their identities to prevent money laundering and terrorist financing through auction sales.

First you need to register in order to bid at the auction house, which can be done in person or online. Auction houses must verify a bidder’s identity with photo ID and proof of current address before participating in auctions. Log in at least 48 hours before a sale in case the auction house needs additional information. If you are bidding on high value lots and are a new customer, you may be asked to provide a deposit or financial reference.

Know your bid strategy.
Auctions can only take place online or live. Bidding online is similar to buying products on eBay. You can set your maximum bid and the automated system will incrementally increase your bid until you win the lot or your maximum bid is exceeded. Or you can bid manually to keep track of the auction, especially in the last few minutes.

Live auctions offer multiple bidding opportunities including: in-room; by advance or purchase bid; with the phone; or online. Placing a pre-bid or buy bid allows the auctioneer to place incremental bids on your behalf up to your maximum bid. This is a good tactic for those who don’t have the nerve to hold a live auction or for those who get carried away by the electrifying atmosphere and end up spending more than they like. You can also bid by phone. An auction attendant will call you during the auction and place bids as instructed. The most powerful way to bid is in person; You must arrive at least 30 minutes before the auction starts to collect your paddle.

Don’t be afraid to seek professional help.
If all of that is too overwhelming, you can hire a professional representative like Hardy to source, validate, or even bid on pieces for you. They personally examined the pieces, searched the sidewalk for a specific piece, suggested jewelry to add to your collection, and bid on your behalf during the auction.

At the end of the day you may end up with an exquisite piece for your collection – or you may be disappointed. Rest assured, there’s always another auction full of stunning pieces you’ll love. Refine your auction tactics and try again.