Approaching The Auction World: a Beginners’ Guide
It’s hard to think of the watch world without considering auctions: in the rooms of Geneva, New York and Hong Kong, the hammers of charismatic auctioneers shape the watch market sale after sale, as collectors, enthusiasts and dealers from all corners of the planet engage in spectacular battles to secure the dream - or the bargain - of a lifetime.
Seen from the outside, auctions are entertaining; setting foot into an auction room and raising the paddle, however, can be intimidating for many. And while an initial concern is understandable, we believe the thrill of bidding is too good not to experience: for this reason, we reached out to veterans of the auction world and asked their advice to put together a “beginners’ guide” to this fascinating universe.
We sat down with Andrea Parmegiani, watch specialist at Monaco Legend Auctions, Charlie Foxhall, who spent ten years at Sotheby’s Watches, and Arthur Touchot, Director and Specialist at Phillips: here are the dos and don’ts they believe everybody should keep in mind before entering an auction room.
Do: make sure you understand how auctions work
All houses charge a so-called “Buyer’s premium” to the hammer price. This means that your winning bid is not the final cost of the watch: you will pay an additional fee of about 20 to 27%, depending on the auction house and final hammer price. It might be common knowledge to many, but Andrea, Charlie and Arthur all shared tales of bidders who were comprehensibly disappointed upon learning about the premium.
Don’t: skip the condition report and auction previews
This point is closely related to the first one: when the hammer falls there’s no space for second thoughts, so you must know what you’re bidding on. Your best way to do it is to read the condition report carefully and inspect the watch in person at the preview. Pre-auction displays are the right occasion to discuss the conditions and history of a piece you set your eyes on with a specialist from the auction house.
Do: establish a relationship with a specialist
Our three advisors are (or have been) specialists themselves, and they all underscored the importance of having a reference specialist for several reasons. For Arthur, it’s good to chat with different specialists and find one who shares your taste; Andrea pointed out that a counsellor who knows your preferences can address you to “hidden gems” you might miss while browsing the catalogue. Finally, Charlie said that having a trusted specialist will smooth out the bidding process both in person and over the phone.
Don’t: forget to register in advance
When the auction is finally approaching, and even if you’re not 100% convinced you will bid on a specific lot, register for bidding. You might spot a piece you had initially skipped, or a good deal might turn out on a watch you considered out of reach. Registering does not force you to bid, but if you’re not enrolled, then you’re out of the game - and a great deal occasion be lost forever.
Do: know your budget
Make sure you know your budget: when the auction starts, things can get hectic quickly, and doing the math while caught in a paddle battle is definitely difficult. A good approach is to select the lots you plan to bid on and single out a budget for each of them. Don’t forget to account for the buyer’s premium and be conservative: as Charlie wisely said, when you’re in the middle of the action it’s easy to go above your initial budget.
Don’t: get caught in the action too deeply
Almost every auction offers attendees a memorable war between bidders: when raising your paddle, be sure you will eventually get caught in the action and exceed your budget. That’s fine, as long as you know when to stop and remain reasonable; but remember, the last thing you want is to hate your dream watch because you spent too much money on it.
Don’t: miss the pre-auction festivities
Thus far, we addressed auctions from a practical perspective. In reality, however, there’s much more than just the bidding to the auction world: the week leading up to the sales, especially in Geneva, is a wonderful occasion to meet with enthusiasts, gain invaluable knowledge on the field and have fun attending all kinds of watch-related events.
And that’s pretty much it. Countless words could be spent on this topic, of course, but in reality, nothing teaches you as much as attending an auction or two and witnessing what happens inside the rooms. With this brief list of dos and don’ts you should be well armed to sit confidently in front of an auctioneer, and hopefully raise your paddle to chase your next purchase!