Jewels,watches set to fetch lower prices at auction
GENEVA, Nov 14 (Reuters) - Hundreds of diamonds, fine jewels and luxury watches are on offer in Geneva next week in a cautious buyer's market, where price levels have dropped by 20 to 30 percent, auction houses said on Friday.
Christie's and Sotheby's have advised sellers to lower their reserve prices -- or secret minimums -- for the flagship jewel auctions as a result of the world's financial crisis that has reduced appetites for luxury goods.
But while many lots were stranded in New York's Autumn art sales, which failed to meet low-end estimates, experts expect the best diamonds and rare gems to fetch good prices in Geneva.
"Let's say that with a more selective backdrop, good items with realistic estimates will find good results," Eric Valdieu, head of Christie's jewellery department in the Swiss city, said in an interview in his Old Town office.
"I'm telling clients they are better off selling at today's prices and having a solid amount of cash rather than waiting two, three or five years until they see the same price level."
Francois Curiel, international director of Christie's jewellery department, said diamonds were in demand -- "a sign of a certain insecurity" amid plunging stock and bond markets.
The jewel auction market is driven by top-end diamonds, which brokers and leading fine jewellers say have come off price peaks touched earlier this year to more sustainable levels.
David Bennett, Sotheby's (BID.N) jewellery chairman for Europe and the Middle East, put a brave face on prospects.
"I am optimistic jewellery will continue to perform well, as it is seen as having value which is tangible and also frankly portable," he told Reuters.
"BLING THING"
Sotheby's estimates that its star lot, a flawless deep blue diamond weighing 10.48 carats, could fetch $6 million to $9 million. "It is a remarkable stone, beyond rare," Bennett said.
And the Lesotho I, a light brown diamond of 71.73 carats mounted on a ring, has a catalogue estimate of $3 million to $5 million.
"It has a huge presence, it is about as big as one can wear. It is very bling thing," Bennett said.
Discovered by a miner's wife in Lesotho in 1967, it was the largest of 18 to be cut on live television from a 601-carat rough diamond by U.S. jeweller Harry Winston. It has remained in the gem box of an unidentified "lady of title" ever since.
Christie's star lot is a 42.28-carat Kashmir sapphire ring estimated at $2.9 million to $3.8 million.
"This is probably one of the most important sapphires in the world. It is exceptional in terms of its deep colour, purity and weight," Valdieu said.
Osvaldo Patrizzi, ousted founder of specialist watch auctioneer Antiquorum, is making a dramatic return as the head of Patrizzi & Co which holds its debut sale on Tuesday.
Watch collectors will be able to bid in its saleroom, by telephone or in real time via the Internet. He also breaks new ground by not charging a buyer's premium on the hammer price.
The week kicks off Sunday night with Sotheby's sale of 200 timepieces, and on Monday Christie's will offer 415 timepieces worth an estimated 15 million Swiss francs ($12.6 million).
"It will be a real test of the new situation since September," said Aurel Bacs, international co-head of Christie's watch department. "It's very important for us that the market is serious and holds up and doesn't cede to panic." ($1=1.190 Swiss Franc) (Additional reporting by David Brough in London; Editing by Laura MacInnis and Paul Casciato)
