Do you own a piece of valuable jewellery that you’re considering selling? Perhaps it’s a family heirloom, a vintage find, or a designer piece that no longer suits your style. Deciding how to sell it can be a daunting process. While selling to a dealer or privately are options, have you considered the auction route?
Selling jewellery at auction can be a fantastic way to reach a global market of passionate collectors and achieve a price that reflects its true worth. But how does it work, and is it the right choice for you?
This guide will demystify the process of selling jewellery at auction. We’ll explore everything from choosing the right auction house to understanding fees and maximising your sale price, giving you the confidence to take the next step.
Is Selling at Auction the Right Choice for You?
So, when does an auction make the most sense? An auction is often the best channel for pieces that have unique attributes a wider audience will appreciate.
Consider an auction if your jewellery is:
- Signed or from a famous designer: Pieces by makers like Cartier, Tiffany & Co., or Van Cleef & Arpels create competitive bidding.
- Antique or from a desirable period: Georgian, Victorian, Art Deco, or Mid-century items are highly sought after by collectors.
- Rare or unusual: Unique designs or pieces with exceptional gemstones can perform very well.
- Accompanied by strong provenance: A clear history of ownership, especially if linked to a notable person or event, adds significant value.
In contrast, selling directly to a dealer might be faster for more standard items, like modern unbranded diamond rings or simple gold chains, where the value is primarily based on materials.
How to Evaluate Your Jewellery Before Consignment
Before you approach an auction house, what should you look for in your own piece? A preliminary self-assessment can help you understand its potential.
- Look for Marks: Check for hallmarks that indicate metal purity (e.g., ‘750’ for 18ct gold) and maker’s marks or signatures.
- Assess the Gemstones: Are the stones large, of good colour, or of a rare type? Are they diamond, sapphire, ruby, or emerald?
- Check the Condition: Note any damage, such as chipped stones, broken clasps, or significant wear. Original, unaltered condition is always preferred.
- Gather Your Paperwork: Do you have the original box, receipts, or any valuation or gemstone certificates (like a GIA report)? This provenance is incredibly valuable.
Choosing the Right Auction House
Where should you sell your piece? The right venue can make a huge difference to the final hammer price.
- Regional vs. National: A local auction house is excellent for good quality, general pieces. A national or international house (like Sotheby’s, Christie’s, or Bonhams) is better suited for exceptionally rare or high-value items that require a global marketing reach.
- Specialist Sales: Many houses hold dedicated jewellery sales. Selling your piece in one of these ensures it is seen by the most relevant and motivated buyers.
- Research Past Results: Look at the auction house’s website for “prices realised” from past jewellery sales. Do they have a strong track record of selling items similar to yours?
- Understand the Terms: Request the seller’s terms and conditions. Pay close attention to the commission rates and any additional charges.
The Consignment Process: A Step-by-Step Guide
Once you’ve chosen an auction house, what happens next? The process is straightforward and professionally managed.
- Valuation & Estimate: The first step is to get an auction estimate. A specialist will examine your item and provide a suggested price range (e.g., £1,000 – £1,500) they expect it to achieve.
- The Consignment Agreement: If you agree to proceed, you’ll sign a contract. This legal document outlines the reserve price, commission rates, and all fees.
- Cataloguing & Photography: The auction house’s experts will research your piece, write a detailed description, and take professional photographs for the catalogue and online listings.
- Marketing & Previews: Your item will be marketed as part of the upcoming sale. Before the auction, potential buyers can view the items in person during preview days.
- Sale Day: The big day! The auctioneer will present your item (known as a “lot”) to bidders in the room, on the phone, and online.
- Settlement: After a successful sale, the buyer pays the auction house. Once the funds have cleared, the auction house will deduct its fees and transfer the net proceeds to you. This usually takes around 30 days.
Understanding the Fees
How much does it cost to sell at auction? It’s important to have a clear picture of the potential deductions from the final hammer price.
- Seller’s Commission: This is the primary fee, charged as a percentage of the hammer price. It typically ranges from 10% to 20% plus VAT.
- Lotting Fee: A fixed charge per lot (e.g., £10–£30) to cover administrative and handling costs.
- Photography/Illustration Fee: A charge for professional photography for the catalogue. This can range from £20 to over £100 for complex shoots.
- Insurance: A fee, often around 1% of the hammer price, to cover your item while it is in the auction house’s possession.
- VAT: Value Added Tax is chargeable on all the auction house’s fees and commissions.
Always ask for a clear breakdown of all potential charges before you sign the consignment agreement.
How Reserves Work and Setting Your Strategy
What is a reserve, and how should you approach it? A reserve is the confidential minimum price you are willing to accept for your item. The auctioneer cannot sell the lot for less than this amount.
- No Reserve: The item will sell to the highest bidder, no matter the price. This can attract more initial interest but carries risk.
- Low Reserve: Setting a reserve at or below the low estimate can encourage more bidding and build momentum.
- Realistic Reserve: This is typically set between the low and high estimate, providing a safety net while still being attractive to buyers.
A good specialist will advise you on the best reserve strategy for your specific piece based on market conditions.
How to Maximise Your Hammer Price
How can you give your jewellery the best possible chance of success? A few preparatory steps can pay dividends.
- Professional Cleaning & Minor Repairs: A clean, sparkling piece is far more appealing. Ask the auction house if a minor repair, like fixing a clasp, is worthwhile.
- Get Certificates: For significant diamonds or coloured stones, obtaining a report from a reputable gemological lab (like GIA or AnchorCert) can add significant value and buyer confidence.
- Tell the Story: Share any known history or provenance with the specialist. A compelling backstory can capture bidders’ imaginations.
- Leverage Marketing: Ask the auction house how they plan to market your piece and share the online catalogue link with your own network.
FAQs: Selling Jewellery at Auction
How long does it take to get paid?
Typically, you will receive payment around 28 to 35 days after the auction, provided the buyer has paid.
What happens if my item doesn’t sell?
If a lot is “bought in” (fails to meet its reserve), you have a few options. You can re-offer it in a future sale (often with a lower estimate), arrange for the auction house to sell it privately, or simply take it back.
Can I bid on my own item to push the price up?
No. This is illegal in the UK and is known as “shroff bidding.”
Who handles shipping and insurance?
The auction house insures your item from the moment you consign it. They will also handle all logistics with the buyer after the sale.