The Wall Street Journal Looks Behind The Curtain At Antiquorum
The Wall Street Journal has a fascinating piece on the world of watch collecting and in specific the Antiquorum auctions. I've covered these auctions a lot here on Luxist, they feature some of the most expensive and impressive collectibles from names like Rolex, Omega, Patek Philippe and Audemars Piguet. As the Journal reports, the watch makers themselves are often the buyers of the watches, buying back older pieces at exorbitant prices to set the prices of collectibles. The co-founder of Antiquorum, Osvaldo Patrizzi, shown here, is quoted in the article as saying that auctions are much stronger than advertising when it comes to promoting a brand. Patrizzi's view is controversial and raises some ethical questions about whether this is price fixing. In fact, Patrizzi is no longer chairman and chief exec of Antiquorum. He was booted a couple of months ago and Antiquorum is currently going over their books. Patrizzi's ouster is not said to be connected to the single-brand auctions.Watchmakers do often buy back certain watches for their archives much as certain jewelers do with rare pieces they want to hold on to but in the case of Omega it seems that something more might be going on. Omega was seeking to restore its reputation for fine mechanical watches after years of making quartz timepieces. Turning to Antiquorum was part of a multi-tiered campaign that included celebrity spokespeople. Patrizzi thought an Omega-only auction could help give the brand new cachet. One interesting detail though, Antiquorum couldn't vouch for the authenticity of watches that are mass-produced so Omega agreed to guarantee the authenticity of all watches sold at the auction and supplied vintage timepieces from its own collection for the sale. The sale, which was promoted in 11 cities, brought in $5.5 million last April, of 300 lots, Patrizzi says Omega bid on around 80. Did this artificially inflate the prices on some lots? That's the major concern.
Price fixing allegations on collectibles are nothing new. Perhaps the most dramatic example is the Sotheby's-Christies auction house scandal memorably detailed in The Art of the Steal by Christopher Mason. In the world of collectibles where value is determined by what people will pay, greed often takes over.
Reader Comments (Page 1 of 1)
Jeff Oct 10th 2007 11:17AM
I am personally involved in the top level of high priced watch dealing. What the article fails to mention is, yes, brands are buying their own vintage timepieces, but, they ARE bidding furiously against other collectors around the world that desire these pieces. I personally bid against such companies as Patek, Breguet, and even Omega in their theme auction, to procure pieces for my own inventory, or, high line clients - and, many times, lose to them.
There was a desire to insinuate a scandalous tone, but, it is a little more involved than that, and the high end watch market is real and thriving.
Jeff Harris
Ryan Johnson Oct 10th 2007 11:44AM
I have to agree with Mr. Harris on his point there. I too am involved in high end watches and the sheer amount of pssionate collectors that reside in this world is quite a high number. Even though I am no fan of Omega I see nothing wrong with what they are doing.
SP Oct 12th 2007 10:48PM
This is nothing but a SCAM in which watch makers collaborated with the auction houses to artificially jack up prices. Their action is similar to the circular-trading that attracted huge fines for perpetuators. I am hoping the watch companies are penalized too. These watchmakers typically use their own "museum" as a 'front' to cover up their shameful act. Immediately after WSJ article, Omega came up with full-page ads in major newspapers where they clearly mentioned that their 'museum' bought the watch! I understand Omega will like to disclose this news specially now that this has created very bad press for them. Their ads are like a confession of their crime. The WSJ article has tainted high-priced watch makers. As it was among the top-5 articles on the date it appered, I am sure thousands of people would have got to know of this scam.
This scam is likely to taint the Brand Ambassadors of these watches too. How can they associate themselves with these scam companies?
While I feel disgusted with their actions, I am also amused that the watchmakers short-changed themselves. If it is all artificial, why not go over-board? Instead of $350K, I wonder why they did not but their own watch for $3.5 million?
Ryan & Jeff - you are primarily motivated by self-interest, and not what is right. I have a gut-feel that you are from Omega's PR Dept. You both collect high-priced watches and are scared that this scam might affect your collection's prices. I dont have axe to grind as I do not own (and neither desire to own) any such price-inflated-watches. I see this issue as a criminal act by Omega and other luxury watch-makers.