An earthquake is shaking the world of watch collecting. Antiquorum, the first auction house in the sector, has lost its historic guide (and founder): Osvaldo Patrizzi.
Currently, between Patrizzi and the current management (imposed by the majority shareholder, the Japanese ArtistHouse Holdings) a no-holds-barred war is underway, to the tune of court summonses and unprecedented journalistic scoops.
The latest, in order of time, is that of the authoritative Wall Street Journalwhich emphasises the exploitation of auctions by watch brands as a brand promotion tool: a method already dubbed 'auction marketing'.
What exactly is it about?
Fundamentally, it is a system to increase the perceived value of a brand through its collector's value, achieved by auction bidding.
Osvaldo Patrizzi's Antiquorum would naturally have played a leading role in the application of this technique in the watch industry, as it was the only auction house specialising only in watches. Although other renowned names in auction sales also did not stand idly by, organising, on the wave of market enthusiasm, numerous specialised sales of fine watches. However, Antiquorum is credited with having turned this opportunity into a real system, with its thematic auctions dedicated to a single watch brand, organised in close collaboration with the houses.
It was not difficult for anyone to guess and understand the manufacturers' interest in this kind of operation, usually carried out to coincide with important brand anniversaries. The Wall Street Journal, however, points out that the manufacturers themselves participated in the auctions, driving up the adjudications of some important pieces and buying many others, with the declared aim of replenishing their museums, but with the advantageous side-effect of seeing the perceived value of the brand rise.
What will happen?
Our thought is that the broad public of true watchmaking - that which is produced today, with modern quality criteria and huge investments in research and construction, by manufacturers who do not offer a watch at a higher price just because it has a different dial colour - will not be affected by the storm. On the contrary, we believe that dampening the spirits in the race for rare pieces (which in the past has also generated improbable 'new vintage', see our article on page 62, in the next issue 162) can only do genuine watchmaking good.
Moreover, there are not a few examples of current brands and models that did not need an auction, manipulated or not, to see their value increase in a short time. One thinks of the Audemars Piguet Royal Oak in carbon fibre, featured on our cover in July, which today sells on the second-hand market for up to 7,000 euros more than its list price.
But these are still very special cases, and one must have flair and experience to take advantage of them. Our (and your) magazine has been repeating for years that a watch should be purchased primarily for the pleasure of owning a valuable object, of appreciating it, of wearing it, and not in the haphazard pursuit of a lasting investment. Besides, doesn't the same rule apply in other industries, such as the automobile industry?
The desire not to see a new watch purchased today heavily devalued tomorrow is understandable, but it cannot be the only purchase criterion, since unlike a car, which has an estimated average life of less than 14 years, the expected life of a mechanical watch is practically unlimited, if properly maintained. The criterion of value retention over time is inescapable for an asset that, like it or not, one is forced to replace within a rather short period of time. But it cannot be a primary reason for buying a long-lasting asset such as a mechanical watch, that beautiful personal accessory that creates an indissoluble bond with its owner and communicates the personality or history of the person who chose it or wore it to anyone who receives it as a gift or inheritance.
This seems to me to be a lasting enough value.
But we will not neglect to give you indications as to the possible collector's value, do not be alarmed. These are, as already mentioned, valuable indications, which in this case are provided to you by an independent information medium, run by people who have bought their watches through official channels, and never resold them at auction.
Is that enough for you?
[Advance of the editorial to be published in the next issue 162 of L'OROLOGIO]
