Editor’s Note
This article examines the nuanced state of a key Swiss sector, highlighting a market paradox of robust buyer demand amid seller hesitancy. It underscores the delicate balance between prosperity and underlying economic pressures.
While the sector remains prosperous in Switzerland, it is navigating a delicate economic climate: sales are attracting an ever-increasing number of buyers, while sellers are struggling to part with their assets.
The year 2016 started well for Christie’s. The auction house announced a 49% increase in its Swiss sales of jewelry, watches, wines, and Swiss art for the first half of the year, totaling 170 million Swiss francs. Its competitor Sotheby’s also shows robust health. Last year, the English house achieved a total turnover of 311.5 million francs, even reaching its best overall annual result.
The first half of 2016 proves equally positive: sales from the Fine Jewelry department, at over 171 million francs, are higher than those of the same period in 2015. David Bennett, Chairman of Sotheby’s Jewelry Division, is pleased with these figures. He notes that Geneva is the city where the world’s largest jewelry sales take place. The Free Ports play a significant role in this: they notably facilitate appraisals without having to import the precious objects.
But behind these performances and regularly broken sales records, the auction market hides a complex reality. While buyers are increasingly numerous in wanting to acquire works of art, jewelry, watches, furniture, or wine, sellers have for some time been a little less inclined to part with their valuable objects.
Thus, even though the private house owned by François Pinault shows very good results, it sold 30% fewer lots at the beginning of this year than last year.
Furthermore, the political, economic, and security changes of the last six months have had global repercussions in all economic sectors, estimates Victoria Rey-de Rudder, Director of Bonhams in Geneva.
In Switzerland, apart from the two giants Christie’s and Sotheby’s, there are about fifteen auction houses, most specializing in areas such as watchmaking, wine, or contemporary art. Following the example of the two giants, a few houses have ventured into generalist sales. L’Hôtel des Ventes is one of them.
By acquiring the brand about ten years ago, the Vaudois Bernard Piguet wanted to democratize auctions to attract a new clientele from all socio-professional categories. Thus, the auctioneer developed his house to an international level. He organizes four generalist sales each year, each comprising between 600 and 800 lots priced at 300 francs and less (out of 4000 lots per sale).
At each auction, between 80% and 90% of the items find buyers. This niche of auctions offering low-priced lots is attracting more and more interest. Even the large structures regularly organize sales of items worth no more than a few hundred francs. Thus, even though it typically only communicates about its records, Christie’s has been orchestrating about a hundred online sales each year for the past five years, including lots starting at less than 1000 francs.
Thanks to this new trend, anyone can bid at a public sale or an online auction. Because, besides affordable prices, auctions have been greatly facilitated in recent years by the web. Not only have sites like eBay or Ricardo made the public sensitive to the magic of auctions, but specialized houses have simultaneously simplified online access, offering very detailed descriptions and estimates of the items for sale.
Today, clients who have registered in advance can bid live directly from their mobile phones without moving.