Is The Smart Money Still In Watches?

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It’s a question that is asked of our specialists by all our high net worth clients who have wristwatch collections – whether that be a few ‘accidental’ investments or hardened collectors who purchase an item…. open the box and admire the marvel of what they have in front of them…… and then hide it away in a safe never to be seen again, that is until they need it to be valued or to provide proof to their authorised dealer that their name should be top of the list for that new GMT that us mere mortals have to wait more than a decade to get hold of.
As with most things of this nature, it is not an easy answer.
If I were to ask one of my extremely learned colleagues “Is the smart money still in art?” then the ensuing conversation could probably last hours, would definitely involve strong language, and ultimately would end with everyone having a subjectively correct answer.
Whilst we cannot predict the future, if the last decade has been anything to go by (including 18 months of complete global turbulence) the market has been strong beyond any comprehension that us watch enthusiasts could have possibly thought about 20 years ago.
Rolex, Rolex, Rolex.

The GMT MASTER II ‘Batman’
Brand new retail price – £7,750
Secondary market price – up to £17,000
Without doubt, the most recognisable brand of luxury watch in the world and probably the one that most people still aspire to own. Their marketing is exemplary, their product line is still world beating in many areas and owning one still makes you feel special…..but, the problem is actually owning one.
If you have mustered the courage to enter into one of their boutiques to actually try on some of their timepieces, you will notice that you are being visually credit scored by both the assistant and security guard making sure that you really should be in here……but when you finally see that Submariner that you have dreamt of since seeing Timothy Dalton in Licence to Kill (Insert Connery & Dr No as required) you know it was all worthwhile, but just as you reach for your wallet, the blood drains from your face and you feel like Patrick Bateman trying to book a table at Dorsia.
You cannot buy a brand new Rolex Submariner.
Really.
Seriously.

The SUBMARINER (No date 41mm)
Brand new retail price – £6,450
Secondary market price – up to £12,495
The Rolex waiting list has almost achieved a mythical status amongst watch collectors with times of 25 years quoted in some places for certain Daytona models, however with the Submariner, you may be in luck and possibly could have that watch on your wrist in under five….but should you?
Included are three examples of watches with their brand new price, and what you would have to pay – today to get hold of one on the secondary market

The DAYTONA COSMOGRAPH (40mm Oystersteel)
Brand new retail price – £10,500
Secondary market price – up to £25,000
We could talk about examples such as the ‘Pepsi’, ‘Coke’, ‘Kermit’, and ‘Starbucks’ (seriously) models and show even larger increases in value, however this should give an overview on why your clients need to have their watches valued on a regular basis, and it’s not just Rolex – Patek Phillipe and Audemars Piguet, many other high end brands command eye watering prices on the secondary market.
So is the smart money still in watches?
We shall leave you to decide!
 

New Appointment. Annabell Parry, Jewellery and Watches Specialist in our Birmingham Office

We are delighted to announce that Annabell Parry has joined the team at Doerr Dallas Valuations. Annabell joins us as Jewellery & Watches specialist covering the North of England and The Midlands, and will also be undertaking valuations in our Birmingham office.
Annabell has worked with international fine jewellery and watch brands for over 20 years. The daughter of an auctioneer and valuer, it was no surprise when she followed the family into the Jewellery industry after leaving University. Since 1995 she has worked with, amongst others, Boodles, Leo De Vroomen, Rolex, Patek Phillipe and Frank Muller where her work has revolved around certificated gemstones, high end watches, antique and handmade fine jewellery.
During those 25 years, she attained internationally recognised industry qualifications and affiliations and is a Registered Valuer with both valuing institutes of the United Kingdom. As an established specialist she enjoys finding forgotten gems and uncovering their family history.
MIRV – Member of the Institute of Registered Valuers / MJVA – Member of the Jewellery Valuers Association / Member of the Gemmological Association of Great Britain.
Professional Qualifications:

  • GA Cert – Gemmology Foundation from Gemmological Association of Great Britain (GEM-A)
  • PJ-Dip – Professional Jewellers’ Diploma from National Association of Jewellers (NAG)
  • CAT – Certificate of Appraisal Theory from National Institute of Registered Valuers (IRV)
  • CPAA – Certified Pearl Specialist with the Cultured Pearl Association of America (Pearls as One)

What our clients are saying already:

Mr D. Nelson – I just would like to say that your colleague Annabell did a brilliant job and we did thank her for her professionalism and dedication to get to the bottom of a few issues. Really great customer service she was brilliant please pass on our thanks.
Mr D. Boyle – I wasn’t aware of the detail that Annabell went into, my wife was so impressed.  We did look up Annabell’s qualifications and experience etc and she certainly knows her subject.  We didn’t realise how under valued/under-insured the jewellery was until we received your report.  So thank you Rachel for looking after us.

Jewellery valuations

We recommend a review of a jewellery insurance valuation at least every 3 years, due to price fluctuations in gold and diamonds.  Also, some insurance policies have a clause requirement that clasps and settings require checking every 2-3 years.  As part of our service we include a clasps and a settings check.   For collector watches we would suggest a desktop review annually to ensure prices are up to date.
Images of jewellery and a watch

New Appointment – Annabell Parry, Jewellery and Watches Specialist in our Birmingham Office

Image of Annabelle Parry

Download the article here

We are delighted to announce that Annabell Parry has joined the team at Doerr Dallas Valuations. Annabell joins us as Jewellery & Watches specialist covering the North of England and The Midlands, and will also be undertaking valuations in our Birmingham office.
Annabell has worked with international fine jewellery and watch brands for over 20 years. The daughter of an auctioneer and valuer, it was no surprise when she followed the family into the Jewellery industry after leaving University. Since 1995 she has worked with, amongst others, Boodles, Leo De Vroomen, Rolex, Patek Phillipe and Frank Muller where her work has revolved around certificated gemstones, high end watches, antique and handmade fine jewellery.
During those 25 years, she attained internationally recognised industry qualifications and affiliations and is a Registered Valuer with both valuing institutes of the United Kingdom. As an established specialist she enjoys finding forgotten gems and uncovering their family history.
MIRV – Member of the Institute of Registered Valuers / MJVA – Member of the Jewellery Valuers Association / Member of the Gemmological Association of Great Britain.
Professional Qualifications:

  • GA Cert – Gemmology Foundation from Gemmological Association of Great Britain (GEM-A)
  • PJ-Dip – Professional Jewellers’ Diploma from National Association of Jewellers (NAG)
  • CAT – Certificate of Appraisal Theory from National Institute of Registered Valuers (IRV)
  • CPAA – Certified Pearl Specialist with the Cultured Pearl Association of America (Pearls as One)

What our clients are saying already:

Mr D. Nelson – I just would like to say that your colleague Annabell did a brilliant job and we did thank her for her professionalism and dedication to get to the bottom of a few issues. Really great customer service she was brilliant please pass on our thanks. 
Mr D. Boyle – I wasn’t aware of the detail that Annabell went into, my wife was so impressed.  We did look up Annabell’s qualifications and experience etc and she certainly knows her subject.  We didn’t realise how under valued/under-insured the jewellery was until we received your report.  So thank you Rachel for looking after us.

Jewellery valuations

We recommend a review of a jewellery insurance valuation at least every 3 years, due to price fluctuations in gold and diamonds.  Also, some insurance policies have a clause requirement that clasps and settings require checking every 2-3 years.  As part of our service we include a clasps and a settings check.   For collector watches we would suggest a desktop review annually to ensure prices are up to date.
Images of jewellery and a watch
 

Japanese swords – More than just Kill Bill

I was interested to read an article from my colleague Alastair about the rise in interest in luggage and hand bags in the auction market. Not only are these bags finely made, but the rarity of their manufacture is making them both sought after and valuable pieces, increasing their prestige and elevating the status of their owners.

In the 21st century a bag or indeed a watch can mark out an individual as someone of some status and wealth.

During the 18th and 19th centuries in Japan the ruling class of the day, the Samurai, carried a sword as a symbol of power and status. The sword, even when its use was reduced with the invention of the gun, still gave the owner his warrior spirit well into the 20th century, even if the sword, like the one my grandfather liberated in the War, was poorly produced.

The Sword had almost mystical properties and when held in the hands of a Master, it was considered to be alive and have a spirit of its own. The men who made the sword were alchemists as they forged metal with fire and skill to produce objects that were both beautiful and lethal.

As you will no doubt know, the fictional character in Quentin Tarrantino’s film Kill Bill goes to Okinawa, an island famous for a type of Karate and the fact that it has a high number of Centenarians, to obtain a sword from a retired sword maker. He refuses to give her one from his collection but is obliged by his sense of honour to make a sword, which he says will take a month.

The production of a sword is a lengthy process, even in this century, so one suspects that either he has a stash of partly made swords in his shed or the film is not as accurately researched as this article. Making a sword is a rare and physical challenge, no less because blades can break in the tempering process, but also there are limited people who are skilled enough to manufacture them and the quality of steel to produce them is made in limited quantities.

A traditional Japanese sword is made from Tamahagane steel, which is made from two types of iron sand, a source of iron ore, heated to approximately 1000c in a Tatara, a type of clay furnace. The firing takes approximately 5-7 days and over this time iron sand and charcoal is sprinkled into a pre-made crucible in the middle of the pine charcoal fired furnace, and subjected to firing, until it is judged to be ready to retrieve. The furnace is broken open and a red-hot lump of precious steel is removed from the furnace, to be cooled and graded. The most important aspect of the steel is its carbon content as this will affect the durability of the blade.

Both traditional iron foundry’s and swordsmiths will work in a forge that is considered a shrine and they themselves may be honoured as national treasures. There is often a Shinto alter in the workshop and devotions are made every day to the Gods for the protection of the workers and the smith.

Image of Tamahagane steel

Tamahagane steel

The swordsmith will take delivery of a selection of pieces of steel that the foundry master has chosen. Normally these are found on the edges of the block of steel produced as they have most contact with air and carbon.

The blocks are arranged around a bar, covered in rice paper and clay slurry. The whole is heated in a furnace to 1200c and then hammered into a complete block, usually with two of the master’s apprentices. The hammering purifies the steel and the work reduces the initial weight of the ingot by 50%. The block is hammered to a plaque and the folded along its length continuously, creating a laminate of steel with multiple layers which ultimately gives the finished blade a grain.

Image of a Japanese swordsmith with his assistants

A Japanese swordsmith with his assistants

The ultimate property of the sword blade is that it is strong, but flexible. The blade must be extremely sharp and hard, but it has to have a softer centre and back to gain flexibility. This flexibility is introduced to the sword by placing a softer iron interior to the blade, which is forged into it before the sword is formed. The initial ingot of steel is created into a long U cross section, into which the soft core is introduced and then the ingot can start to be unified and lengthened into a blade form, with the bevelled edge. The smith will work the blade meticulously as his work will add to the ‘fibre’ and construction of the steel. It will be well shaped before it is ready to tempered, a process of the hardening of the metal. He will also form the tang, a tongue like piece of metal onto which the sword fittings and hilt will be mounted. This tang is often signed by the maker.

When viewing a Japanese sword blade you will note that there is a pattern to the surface called a Hamon, a sort of cloud like effect that appears along its length which is separate to the folded gain of the steel. This is created when the blade is hardened. A mixture of clay and carbon in the form of a slurry is painted over the blade, protecting the softer elements. A pattern is created in the slurry that is unique to the swordsmith and adds an artistic expression to the blade. The blade is then heated to approximately 800c and when the smith judges it to be ready and hot enough, it is plunged into cold water. The areas of the steel which receive a thinner coat of clay slurry become very hard and will take the edge of the weapon. The areas with a thicker clay coating will cool less rapidly preserving the flexibility of the sword blade. The cooling and tempering process also forms the curve and shape of the blade.

Omage of the Hamon of a Japanese sword

The Hamon of a Japanese sword

The blade is now ready to undergo polishing, which in the first instance will be done by the swordsmith to check for imperfections in the blade, but then will be sent to a master blade polisher. It will be his job to refine the surface of the blade, revealing all the smiths work, the hamon created in the tempering process and sharpening the blade to a razer like edge capable of cutting blades of hair or realistically flesh and bone. He will use various grades of stone, clays and powders to grind and polish the blade to a mirror like finish. This process is approached with some trepidation as the polisher must avoid cutting himself on the edge of the sword, but still achieve a beautiful finish.
Once the blade is made it will be stored in a protective wooden case, called a Shirasaya. This is made of two parts, one to house the blade and one to house the hilt. The hilt part is drilled with one or two holes which have corresponding holes in the tang of the sword, and wooden pegs, called Mekugi, hold the blade into the hilt piece.

There are generally five types of sword seen on the market known as katana, tsurugi, wakizashi, odachi and tanto, each with a defined length, the shortest a tanto being a dagger form.

Investing in Warhol Is Investing in Art History

By Ben Hanly, Modern and Contemporary Art Specialist

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“Investing in Warhol Is Investing in Art History” (Eric Shiner, Andy Warhol Museum)
The appeal of Andy Warhol’s work is universal and enduring, and it has been the bedrock of the Post War/Contemporary art market for decades, fuelled by his global fame and the rich supply of work. Not surprisingly, his images which were drawn so strongly from popular culture, have come to define our understanding of contemporary art and culture since the 1970s. The art of Warhol is now so mainstream and so inextricably linked to our visual vocabulary that it is impossible not to be familiar with it.

Contemporary art without Warhol is unthinkable, and this influence and popularity is reflected in the strength of his commercial market which has continued to rise on an upward trajectory since his death in 1987.
In many ways the Warhol market defies traditional market rules where perceived wisdom suggests that market strength is linked to the tension between supply and demand – where a limited supply exists, strong prices usually follow. Paradoxically, the opposite is true with Warhol who was a hugely prolific artist. In 1963, Gerald Malanga introduced Warhol to the hitherto commercial technique of silk-screening which he went on to use throughout his career to produce large numbers of canvases produced in various series, as well as extensive numbers of limited-edition prints.

Normally this would be a recipe for commercial disaster. However, with Warhol it turned out to be a strength. Warhol’s notoriety brought him global fame and this coupled with the easy accessibility of his images which have become icons of our time, has meant that there has always been a strong demand for Warhol’s work. The fact that the large supply of works on offer at any one time to collectors has encouraged a very buoyant and vigorous trading market for the artist. Similarly, the fact that collectors can enter his market at varying price points has been very helpful in developing Warhol’s market.

Even today, it is possible to buy a good Warhol limited edition print for as little as £25,000. Whilst this figure might not be exactly small change, it does represent extremely good value and a very attractive entry point level for new collectors entering the market of such an iconic artist. It is hard to believe that a Warhol Campbell’s Soup Can print can be bought at auction for a little as $35,000. The word ‘iconic’ is often used too freely these days, but in this case the use of the word is fully deserved. Warhol’s soup can imagery is truly iconic and for many people it represents what modern art is, so to be able to acquire such an important piece of art history for a relatively accessible price is remarkable.

At the other end of his market, Warhol’s major canvases can make staggering sums of money – such as his 1963 Silver Car Crash which made $105m at Sotheby’s in 2013; or his Triple Elvis, also from 1963, which made $82m the following year in 2014. It is not surprising that Warhol’s highest prices have been for his seminal early paintings – here rarity and uniqueness come into play as far fewer works were produced in the early 1960s than in later years, and all of them created with much more hands-on involvement from the Artist himself. It was only in the late 1960s/1970s that Warhol’s studio, his now famous Factory, came into full swing and started to produce large numbers of works with an ever-increasing supply of assistants and helpers. The early works from the 1960s are, therefore, pure Warhol and they are the truly iconic images which were to make Warhol’s reputation – his Soup Cans, Marilyn, Elvis, Jackie Kennedy etc.

A market as diverse and large as Warhol’s performs differently at its different price levels; prints perform differently to canvases, which in turn perform differently depending on date and quality. Clearly the masterworks will always be avidly sought after by major clients and achieve huge prices. However, it is the overall stability and buoyancy that is astonishing with the Warhol market across all sectors.
It is true to say that the value of Andy Warhol’s artwork—despite a brief dip in the 1990s—has been on an endless upward trajectory, and they continue to offer a secure investment opportunity to all levels of collectors. It should be noted that in 2014 alone the value of the international Warhol market sold at auction accounted for $570m – this figure accounted for more than a sixth of the global art market!
Warhol may have famously said that everyone has their 5 minutes of fame, but it appears that thirty-three years after his own death, Warhol’s artwork has a much longer lasting appeal to collectors!

Auction results of the Rafael Valls sale at Sotheby’s

Sectio from James Baker Pyne, 'Lyme Regis

James Baker Pyne, ‘Lyme Regis’

David Dallas, Old Master Specialist

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In mid-March I drew your attention to the upcoming sale of 100 Old Masters consigned to Sotheby’s by the West End dealer Rafael Valls. The entire sale was to be online in the first week of April. As the time drew nigh and the Corona virus started to truly bite I began to regret my final sentence which went “a sale in cyber-space could be the way forward.”

James Baker Pyne, 1800-1870 'Lyme Regis'

James Baker Pyne, 1800-1870
‘Lyme Regis’
Estimate (quite correctly in my opinion) £2,000-£3,000
Realised £30,000, which makes it the 3rd most expensive J B Pyne ever auctioned and almost three times the price of his 6ft masterpiece “The Vales of Ennerdale and Buttermere” which Sotheby’s sold in February of last year.


 
Italo-Flemish School, 17th Century 'Portrait of a Gentleman'

Italo-Flemish School, 17th Century
‘Portrait of a Gentleman’
Estimate £8,000-£12,000
Realised £275,000


 
I need not have worried. The sale was a complete and utter triumph! 98 of the 100 paintings sold, which is an extraordinary statistic and the prices achieved were also exceptional. The first lot went for five times the top estimate and this set the tone for the rest of the sale. The sale total was £1.6m.
Dutch School, circa 1640 'Portrait of a young girl'

Dutch School, Circa 1640
‘Portrait of a young girl’
Estimated at £8,000-£12,000
Realised £81,250


 
Raf, as he is universally known, has, with Simon Dickinson and Richard Knight, the greatest breadth of knowledge in paintings of anyone I know. I like his taste, the pictures were all in good state and he and Sotheby’s had estimated them at sensible levels. Nevertheless, what the auction results were an unexpected beacon of hope for the market at a desperately gloomy time.

Military Medals

This past month has seen some fantastic celebrations commemorating the 75th anniversary of VE Day, obviously the times we are currently in have dictated that those were somewhat muted however the overall event was a welcome respite from what has been a difficult few weeks for everyone, I for one enjoyed an afternoon tea in the garden whilst listening to a gramophone.

This again has brought to the fore the actions and courage of some of what could arguably be described as ‘Our greatest generation’ and that interest has brought a somewhat renewed attention on the medals and awards that they may have been awarded.

 

Medals of course have been collectible since they were introduced, with their interest intertwined with the ever-fascinating world of military history and relics. What a collector may be buying is not a round disc of metal with a ribbon, but actually a story – perhaps a pivotal moment in military history, or an honour bestowed upon a great person of ancestral interest.

The very nature of such a recondite subject means that each individual collector will have a certain punctilious approach to their field, be it a certain conflict, a certain regiment, or a search for long lost family pieces even. Conflict and war beclouds many generations and such interest can be widely spread over hundreds of years of history.

Military Medals can, and often do come with a wealth of ephemera, be it uniforms, weapons, log books, diaries and the like – the inclusion of such items really does add to the value of the collection because as mentioned before, people are buying not only the medal, but the history of a person, battle – or a combination of both.

Vice-Admiral Gordon Campbell

So when it comes to valuing medals, the task is made far more interesting by the research that needs to be done – military records are consulted and dates are researched, for example; the medals belonging to a soldier killed on the first day at The Battle of The Somme are worth substantially more then a soldier killed on any other day. These unique factors make valuing some medals more of a submersion into military narrative rather than a hands on experience.

Gordon Campbell’s Victoria Cross group made £700,000 at auction in 2017

The illustrated Victoria Cross group with triple DSO awarded to Vice-Admiral Gordon Campbell of the Royal Navy has a description that reads like something straight out of a ‘Commando’ boys comic book, with tales of “conspicuous gallantry”, and “consummate coolness”, this group made £700,000 under the hammer back in 2017 and with certain groups like this being as rare as they come its value has most likely increased substantially in the last three years as well.

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