The Power Of Jewelry In The Chinese Market

Buying Trends Indicate Wealthy Chinese Looking For Long-Term Value, Asset Classes That Outpace Inflation

China is a huge and growing market for Sotheby's and other auction houses

JCK looks back at the recent Sotheby’s jewelry auction that took place in Hong Kong, reflecting that the runaway success of luxury goods classes like jewelry/diamonds at that auction shows that Chinese buyers — who were the overwhelming majority in this instance — are continuing to invest in assets that will hold sustainable value. Seeing how these same buyers were more interested in diamonds than Chinese jadeite — which does not have as sophisticated resale markets — it seems pretty obvious that wealthy Mainland Chinese are supplanting the historical role of Hong Kong Chinese as mass buyers of luxury asset classes. This carries over in all classes, recently, from fine wines and watches to automobiles and contemporary Chinese artwork.

Watches and Jewelry Dazzle at HK Sotheby’s Sale

New Collector Base Starts to Emerge

The Star of the Show -- Patek Philippe Watch Sold for HK$2.8 million (ⓒ Sotheby's)

As the Sotheby’s sale in Hong Kong that I’ve been watching so intently winds down, I was struck today by the strong showing at the watch and jewelry sale, where many of the top bidders were from mainland China. From the frenzied bidding we’ve seen throughout this Sotheby’s series, it looks as though a trend is emerging in which affluent mainland Chinese are — like many non-Chinese — hedging their bets with luxury and art purchases.