On the 13th of November, at 7:00 PM, the third session of the Magnificent Jewels and Noble Jewels auction took place in Geneva, Switzerland. The auction presented property of an important Asian American Collection featuring some iconic designs from the world’s most prestigious jewelry houses, such as Serti Mysterieux, Cartier, and diamond jewels by Harry Winston. Phenomenal coloured diamonds, which had never been present before in the auction, were also featured. In addition to this, exceptional coloured stones and magnificent jewelry from the early 19th century to the present day conformed the lots of the auction.
The night began with the selling of an emerald and diamond ring from the first-half of the 19th century. This ring weighed 6.66 carats and the mount was enhanced with circular-cut diamonds. The estimated price for this lot was established between 30,000 to 50,000 CHF. The final selling price was double that at 100,000 CHF. The night finalized with the selling of the most expensive piece of jewelry of the whole auction. Selling at 6,072,900 CHF, lot 453 proved to grab the attention of all of those in the room, particularly the two bidders who entered a contested pattern of back-and-forth until the bidding was closed at the selling price and the lucky winner deposited more than six million Swiss Francs into the purchasing of this piece.
Property from an important Asian American Collection, the sapphire and diamond bracelet from Cartier (1927), was set with a cabochon sapphire weighing 47.07 carats, between two pear-shaped diamonds weighing 8.60 and 9.27 carats respectively. The bracelet had an initial estimated price between 2,000,000 and 3,000,000 CHF. The final selling price of over 6 million CHF shows that the buyer added a speculative value of nearly 3,000,000 CHF to the bracelet. This last lot surprised everyone in the audience as the bidding continued for over fifteen minutes and the two bidders were hesitant to give up the fight for the precious bracelet.
It is interesting to see how these gemstones and the precious jewelry they conform obtains a speculative value that many times is significantly over the expected real value of the item. It is a clear demonstration of the supply and demand aspect of the market, where the price of a good or item will rise as long as there is high valued demand. In this case, much of the added value of the items at the auction was based on speculation and needs and wants. In my personal opinion, I feel like ego and bragging rights also played a major role in the willingness of many of the bidders to obtain jewelry at exaggerated values. Lots that did not obtain bids at the expected value price were many times not sold. Bids for some of the stones did not even take place when the bidding began well below the estimated prices. This shows that the pre-established price does not play a determinant role in the bidders’ behavior and their decision to purchase the item. Often times, the origin, physical composition, the collection to which it belongs to, and its physical appearance place a bigger role to the price that consumers are willing to place on it.
Overall, attending the auction exposed me to an environment that was completely alien to me. Witnessing the amount of money that individuals are willing to spend on these precious stones is mind-blowing and made me wonder if it truly serves as proper form of investment. The sale total of the auction, including Buyer’s Premium, was 53,382,275 CHF.
