OUR AUCTION PROGRAM
A SERVICE THAT IS A STEP ABOVE THE INDUSTRY
In addition to listing our clients’ diamond property on our website, we also provide in-house auction services.
Typically we conduct auctions not less than twice and up to four times annually depending upon the quantity of diamonds and/or jewelry incorporating diamonds, which are presented by clients for auction.
Our auction(s) are conducted at our showroom facilities where we occupy 7,500 square feet of commercial space in the famous Technicolor Building in downtown Toronto. On occasion our auction(s) are presented in concert with several other diamond dealers who occupy space at our showroom facilities.
The property offered at auction represents items of loose cut and polished diamonds and/or jewelry incorporating same, which are owned exclusively by our clients. We do not include any of our own inventory as we have a policy that we shall not compete for the sale of property at auction with those of our own clients who wish to remarket their property.
To enter one or more of our auctions, our clients must first execute a written consignment agreement, a draft copy of which is available upon request. Under the terms of the said agreement the client must determine an estimated price range from a minimum to a maximum amount that they would be prepared to accept at auction. In addition, the client must determine a reserve bid, being the lowest price that the client would accept from a successful bidder at auction.
The auction(s) in question are conducted as silent auctions whereby those in attendance can place written bids for item(s) of property displayed. Once the auction is concluded, bids are opened by staff of Excalibur Royale. In the event a bid or competing bids are equal to or greater than the reserve bid, the highest bid shall be deemed as the winning bid and staff shall advise the successful bidder forthwith that they have won the bid and settlement arrangements (payment) are concluded.
In the event a bid or competing bids are obtained for an item(s) of property at auction which is less than the reserve bid, we shall contact our client as soon as reasonably possible to obtain their acceptance or rejection of the highest bid (if any). If the client agrees to accept the highest bid, which is less than the reserve bid, the successful bidder is informed that they have won the bid and settlement (payment) is arranged.
The rationale in allowing client(s) the opportunity to consider a bid that is less than the reserve bid is to ensure the bid(s) that are relatively close to the reserve bid are not dismissed without first providing the selling client the opportunity to consider the viability of the bid.
Of course, a client who has delivered their property for sale at our Excalibur Royale auction has the right not to accept any bid(s), which is less than the reserve bid at their sole and unfettered discretion.
In order to offset and defray many of the costs to Excalibur Royale in conducting an auction(s) on behalf of its clients, Excalibur Royale charges a one-time fee ranging from five percent (5%) to ten percent (10%) of the reserve bid as determined by the client in consultation with their account representative.
In addition, Excalibur Royale charges a buyer’s premium (not a client/seller’s premium) of 10% of the amount of the bid accepted by our client/seller which is due and payable by the buyer in addition to the price determined as the successful bid.
The costs associated with conducting an auction are considerable. Without restricting the generality of the foregoing, auction costs include:
Advertising in the local media (newspapers) and online;
Arranging for delivery and in-transit insurance on the property of the client to be entered at auction;
Creation and maintenance of an online site displaying our clients’ property available at auction;
Discussions and finalization of the terms and conditions contained in our standard consignment agreement including a determination of estimated price ranges (minimum and maximum) and reserve bids;
Storage (vaulting) and insurance respecting our clients property prior, during and subsequent to the auction event;
Security (not less than two armed security guards);
Staffing (not less than ten (10) staff members) for the purpose of displaying clients’ property prior to and during the auction event;
Catering services (food and champagne for those in attendance);
Arranging settlement (payment) by the buyer and payment to the client/seller.
To prepare an item of property for auction requires not less than a three (3) month pre-auction preparatory period.
The auction services provided by Excalibur Royale are available to its clients.
If you are a client (only) and are interested in viewing a copy of our draft consignment agreement and/or you require clarification regarding any material aspect of our auction process, please contact your account representative at your convenience.