Critical Questions to Ask Before Selling Precious Metal Items at Auctions
As we are writing today’s post, a reputable auction company is preparing to hold an auction of jewelry, including rare watches and other items of highly collectible, valuable jewelry.
So today, we would like to answer this question . . .
Is it a good idea to sell items at auction that are made of gold, platinum, silver and other precious metals?
The short answer to that question is, it depends. A reputable auction company just might be able to sell your items for a good price. But before you agree to sell your gold, silver or platinum items at an auction, here are some questions to ask.
Has the Auction House Sold Similar Items in the Past, and for What Prices?
Established auction houses will have searchable databases on their websites that list what they have sold in the past, and for what prices. So ask the auction company you are considering to direct you to that information.
The safest approach is to sell that valuable item – be it a Rolex watch, a set of sterling silver tableware, etc. – through an auction house that has sold comparable items in the past. Their expertise can add meaningful dollars to the selling price your item will achieve.
Can You Speak to an Expert at the Auction House who Specializes in Items Like Yours?
The larger, better-established auction houses have staffs of experts in different collectible areas like jewelry, home furnishings, gemstones, etc. If they do not have an in-house expert, they should be able to tell you about any outside experts or consultants they work with when establishing values and running auctions.
A short talk with one of these experts should provide you with a wealth of information you just might need before you consign. Was your item made by a renowned jeweler, for example? Is your particular item unusual or sought-after by collectors for some reason you do not know about? The more information you can get before you agree to sell, the more you will know about its value on the auction market.
How Will the Auction House List and Advertise Your Item?
Large, established auction houses list upcoming auctions, along with lists of the items (called “lots”) that will be for sale. They also send out emails to previous buyers that let them know about upcoming auctions they might like to know about. The better the promotion is, the greater the likelihood is that your item will sell for a high price.
Also ask if the auction house will charge you a fee to photograph, advertise your item or show it in a printed auction catalog. It is not unheard of that some auction companies charge listing fees to cover those expenses. In general, you can say you expect the auction company not to charge for these services. But be prepared for this conversation and be ready to negotiate.
Will Online and Phone Bidding Be Offered During the Auction?
The majority of sales of high-value items today are made to bidders who do not physically attend auctions. Most sales are made to buyers who bid over the phone or online in “real time” while the auction event is taking place.
So be sure to ask whether online and telephone bids will be accepted during the auction sale you are considering. If not, consider auctioning your items at a larger, better established auction house that offers those services.
What Reserve Price Can You Set for Your Item?
A “reserve” is the minimum price that the auction house will accept for your item. If bids for your item do not reach that reserve, your item will not be sold, and it will be returned to you.
For example, let’s say you would like to sell a ring for nothing less than $5,000. You can then agree with the auction company that your ring will not be sold for less than a bid of $5,000. That sum is your reserve price.
Always be sure to set a reserve and, of course, get the auction house to document that figure in writing to you before the sale. Don’t forget to protect yourself in this way. If you don’t, there is a risk that your item will be sold for less than the minimum price you are expecting it to earn.
So You Have to Deliver Your Item to the Auction Site?
In general, auction houses like to have possession of the items they will auction. This is often because they hold pre-auction exhibitions of items that will be sold. (After all, some bidders like to attend these events to examine items that interest them.)
At other auctions, you might be able to retain possession of your item until it is sold. But if you are dealing with a higher-end, reputable auction company, this will probably not be the case.
Will the Auction House Offer a Post-Auction Sale of Unsold Lots?
Most auction houses email lists of items that have not sold at their recent auctions, usually within a few days after the auction has ended. In other words if you consigned a watch that did not reach your reserve price, that watch will be listed alongside other items that did not sell. So ask if the auction house will host a post-auction sale of unsold lots. And – and this is critical – ask to set a firm price for that item at that sale. You don’t want to sell your item for less than you expect to receive for it, and the auction house shouldn’t want you to either.
If Your Item Does Not Sell, How Will It Be Returned to You?
Reputable auction companies will ship your item back to you. Some will expect you to come pick up your unsold items within a specified amount of time, like a week or two weeks after the sale is over.
If the auction company will send your unsold items back to you, ask what they will charge you to do so. And be sure to get the auction company to agree to that fee, in writing.
If You Have Gold, Silver, or Platinum Scrap, Do This Instead!
In general, auction houses do not accept scrap or sell it at their auctions. Your best option? Contact Specialty Metals Smelters and Refiners at 800-426-2344 and discuss how we can help you get the most money for it.
Our precious metal consultants are available to offer you expert advice. There is no charge for our counsel, so why not call us today?