Rapaport, December 15, 2010: Sotheby's Auction Hits a Record

RAPAPORT...

Online Christmas retail spending for the first 43 days of the November -- December 2010 holiday season has risen 12 percent to $23.82 billion, according to comScore. The most recent week (week ending December 12) reached $5.31 billion in spending, an increase of 12 percent versus the corresponding week in 2009. Monday, December 13, known as "Green Monday" (the second Monday in December when online spending has historically tended to peak), reached $954 million in spending, representing a 12 percent increase.

As part of the comScore Holiday Shopping Survey, more than 500 consumers were asked about their holiday shopping for the season to date. When asked if they had already finished their holiday shopping, 35 percent of respondents indicated they had already purchased everything they intended to this season. Of the 65 percent who had not yet finished their shopping, 33 percent indicated their primary reason for not having finished yet was insufficient money available to purchase the gifts they wanted. 32 percent indicated they simply hadn't had enough time to finish shopping, while 11 percent said they were waiting to get better deals at the last minute and 6 percent said they enjoyed the thrill of last-minute shopping.

"The reasons consumers give for not having finished their holiday shopping reveal some very important dynamics driving the retail industry today," said comScore chairman Gian Fulgoni. "The first is that we are offered a stark reminder that many consumers are still strapped for cash and may be waiting for their mid-December paychecks before they can finish their shopping. The second important point is that it's clear consumers have significant time constraints in their lives, which is one of the key drivers behind the continuing shift in retail dollars to the online medium, as the Internet enables people to shop for many gifts quickly and more efficiently, not to mention the cost savings that can be realized through e-commerce."

This past week, Sotheby's New York held its Magnificent Jewels sale and the auction of "Jewels from the Estate of William B. Dietrich" to achieve $53.2 million in total, the highest ever total for the company during one day of jewelry sales in Manhattan. Buyers responded to quality in the auction with each of the top 10 lots bringing prices of more than $1 million. The day began with a 'white glove' auction--100 percent sold--of Jewels from The Estate of William B. Dietrich, which far surpassed its pre-sale high estimate to bring $4.125 million.

"In many ways yesterday's record sales were a strong statement about the global jewelry market at Sotheby's," commented Lisa Hubbard, chairman of Sotheby's North & South America, international jewelry division. "Buyers come to auction looking for variety, quality, rarity and value, and the success of our sale was a reflection of the depth and consistent quality of the pieces we offer in New York, whether stones or signed jewels."

The sales saw strong results for rare and exquisite diamonds, led by A Magnificent Platinum and Diamond Pendant-Necklace, Tiffany & Co. from a private collection that achieved $3,666,500. In the wake of Sotheby's record-shattering result for 'The Graff Pink' this November at Sotheby's Geneva, yesterday's sales saw more strong prices for exceptional pink diamonds. A Magnificent Rare Light Pink Diamond Ring featuring a diamond linked to the famed Golconda mines of India far surpassed its high estimate to sell for $2,226,500. Strong online participation in both sales was led by A Magnificent Platinum and Diamond Necklace, whose $1,082,500 result is now the highest price paid online at a live Sotheby's auction.