In recent years, auction houses have enjoyed economic success. Record-breaking prices have been achieved for timepieces, which in the past were rare occurrences. In 2019 alone, 17 timepieces have sold for more than EUR1 million. The success of these auctions has led to the emergence of new businesses.
While starting prices are usually lower than market values, it is possible to score a bargain if you’re lucky. This can happen, however, only when the watch is underappreciated by the broader audience. A good example of an undervalued watch is the Patek Philippe Nautilus ref. 3700-1A.
While many people may assume that the auction market is primarily for wealthy collectors, younger generations are also becoming interested in the auctions. Younger bidders are interested in buying watches as investments for their own collections. As cryptocurrency has become a popular investment option, many newly-minted millionaires are turning to watch auctions as a way to store their wealth.
One drawback to auction watches is that there is no guarantee of a million-dollar watch. Most watch auction lots are predictable and fall under estimate. It is possible to bid high but beware of the risks associated with this practice. The rush of adrenaline can easily cause you to lose control. Remember, though, that you are not the only one who has succumbed to the temptation to buy a watch at an auction.
AuctionWatch can also keep track of individual auctions. By clicking on the “Add to Watch List” link at the top of an auction page, you can easily see which items are being watched. You can remove an auction from your watch list at any time if you no longer wish to keep it on your list. This will not affect the bid, but it will remind you to post an auction.
Another disadvantage of bidding at an auction is the possibility of hidden fees. Usually, the auction house will charge you a buyer’s premium on top of the hammer price. While this fee is negligible, it may cost you hundreds or thousands of dollars. This can make the process of buying a watch more complicated than purchasing it from a store.
When you are buying an auction watch, you must do research to determine its authenticity. It is better to read up on the history of the watch before bidding. For example, you should be aware of whether it has any defects and how well it is functioning. There are various sources of information, including books, that can help you in making an informed decision.
Removing lots from an auction is another problem that auction houses should improve upon. While very few removals have caught the attention of the public, there are some that are still relatively small and have not caused a great deal of disruption. If you are buying a watch on a whim, you may not be able to see if it has been removed from the auction.
