Baffled by estimate

[goldenpearl]

Hi all,

I own a graduated three strand natural (GIA certified) pearl necklace which I acquired from my aunt. She was given the necklace as a gift from a member of the royal family of Kuwait while on a political visit to the region. There are a total of 351 pearls (one cultured) which measure from 3.10mm to 8.95mm. I have priced having the piece recreated today and was told that it would be well into the six figure price range since the pearls are almost perfectly round and matched. The dilema I have right now is that I sent the images to christies in Hong Kong, along with the GIA report via e-mail. I was told that based on the images, the auction estimate would be anywhere from $100,000-$300,000 US dollars.

Naturally, they told me that they would have to see them to give an absolute. I sent them. Shortly after, I received a reply with a lowered estimate. The reason they gave me was that they were too yellow. Everyone else I have shown them to, including Tiffany's and my appraiser, has said they are amazing. They are cream with a hint of gold. It makes me wonder if they understand that Bahrainian pearls are normally yellowish or if they are comparing them with naturals from other parts. Can you give me some peace of mind on this. I appreciate any information.

[Zeide Erskine]

Dear Goldenpearl,

It always depends on who is currently on staff at the great auction houses to value pearls and if they think their bidders are going for the British (abyadh or white), the continental European (jiwan or pink) or the Arab (nabatee or golden) markets. It sounds like you have nabatee and if the Arab market is currently not buying, they cut the value down. There are plenty of naturals buyers on this forum that appreciate all the colors for their various merits. There is no reason why you should try selling nabatee to European buyers and Americans usually prefer pearl plated beads anyway.

Zeide

[goldenpearl]

Thanks so much for your reply. How can I find someone who may know the true value?

[Zeide Erskine]

Hi Goldenpearl,

Forum member Ali from Bahrein is probably the best address for giving you a realistic estimate. Valuing natural pearls requires to first rate the luster factors (orient, mirror, and water in this order), then size (typically in carats now, previously in grains), followed by surface perfection and then symmetry (perfectly round is so rare that it is never found in strands). Design also figures into the equation since triple strands are highly desirable and hard to match.

Zeide

[goldenpearl]

Thanks. I sent a message to Ali but just have not heard anything back yet. I also sent an e-mail to Jeremy who recommended sending an e-mail to you with the images. Would it help if I sent the images to you or do you think I should wait to hear from Ali?

[Zeide Erskine]

Hi Goldenpearl,

I can give you a ballpark price idea for insurance purposes but you already have that (low six figures US$, i.e. US$100,000-150,000). The insurance estimate would be this high because you would have to replace them on the Arab naturals market since they are not sold anywhere else. Ali would have the best and most current overview of actual retail prices in their prime market in Bahrain.

Zeide

[goldenpearl]

Just another note of thanks for all of your help. It has been tough getting information on these pearls until I found your forum. I did send an e-mail to Ali and am looking forward to his reply.

[Zeide Erskine]

Hi Golden pearl,

Please note that if you are going to ship the pearls to Ali for appraisal, you have to cut out the cultured pearl first or customs will confiscate the whole thing and it is going to be pretty hard to get them back. The Bahrainis do not appreciate cultured pearls mixed into naturals strands. That's like trying to ship a strand of perfectly matched top grade Tahitians with one dyed freshwater pearl to Tahiti. Bad idea.

Zeide

[goldenpearl]

Thanks for the info, Zeide. I have not yet heard from Ali. I'm hoping to hear something soon. In the meantime, do you believe that a sale estimate from Christies of $30,000 to $50,000 is enough for these pearls? I've attached two images for your review.

[Zeide Erskine]

Hi Goldenpearl,

It depends on when and where they are going to auction them. Your pearls are quire clearly nabatee and would not sell well in the U.S. or in Europe. You should also keep in mind that these auctions sell lower to the market which means they sell mainly to resellers that want to get their profit margin on them, too. So if your pearls have a reasonable retail value of US$150,000 the high estimate will be a third of that (i.e. US$ 50,000), the opening bid will be half of the high estimate (i.e. US$ 25,000) and the estimate given to the seller (i.e. realizable hammer price after commission and insurance) is US$ 20,000-30,000. So that's about in line with conservative estimating practice.

You will get the best prices in Bahrain and Brunei but not with a cultured pearl in the strand. The cultured pearl makes the whole rest of them practically unsellable to the high-end Arab market. My recommendation is to cut out the cultured pearl. In your GIA report they are supposed to have marked it. The standard practice is to stick a little piece of black tape on the naturals, but if you have all naturals and one cultured they probably did it the other way around. Ship the necklace without the cultured pearl to Ali and have him match one and restring it. That will make it sellable in the Arab market and you get a better price for them.

Zeide

[goldenpearl]

Zeide,

I appreciate your time on this. How much more do you think I would get in the Arab world as opposed to where they are right now at Christies in Hong Kong? At this point I would have to pay to have them returned so I need to be pretty certain...thanks!

[Zeide Erskine]

Hi Goldenpearl,

Unless you are actually there and ready to barter, that is really hard to find out. It also depends on how long you are willing to wait and who accepts the strand on consignment. I guess, about 100 grand would probably be attainable in a reasonable timeframe. That means if you find an actual jeweler (not auction house or bank) who is willing to take your necklace on consignment he may reasonably get US$ 150,000 for it and split it with you 2:1 after matching in a natural pearl for the cultured one. Including finding a matching pearl and restringing, I'd say a year would be a reasonable timeframe.

Zeide

[goldenpearl]

Zeide,

Do you know a good, trustworthy jeweler there who would be interested in this type of sale?

[Zeide Erskine]

Most jewelers there are going to be trustworthy because infractions do not just get them a slap on the hand by the better business bureau but tend to cost them parts of their anatomy, occassionally vital ones. Thus the incentive to be honest is much higher than in the western world. However, I do not have any current contacts willing to take on a substantial consignment. Since any mention of my naturals collection typically leads to a flurry of e-mails with buying offers, I am surprised you don't have one yet. Your pearls are not a pawnbroker item, so please be patient. I am sure Ali will contact you soon and may already be shopping around for an interested party.

Zeide

[goldenpearl]

Zeide,

I would have to start receiving other offers soon or a valid contact in order to feel comfortable in retrieving these pearls from Christie's. There is a considerable four figure fee that I would have to pay at this point. Please let me know if you hear of anyone and let them know I'm here.
Thanks.