it's a world-class museum art gallery and jewelry store all rolled into one where you can spend millions on an original van Gogh or make millions selling a 37 carat diamond ring join me as we go behind closed doors of Sotheby's auction house just about everyone has heard of Sotheby's but you know exactly how they collect and sell their precious goods we obtained exclusive access to see how they cater to some of the world's most discerning collectors it's not like you're selling food clothing and shelter you're selling more than that you're selling lifestyle you're selling glamour you're selling power power you're selling something that people imagine themselves to be Sotheby's is basically an elite middleman they find people with rare and expensive collections or items they need to sell then auction them off to the highest bidder they make their money on Commission charging both the buyer and the seller the oldest and most famous auction house in the world Sotheby's began in London in 1744 with a book auction now this publicly traded company is represented in 46 countries spanning five continents last year their sales reached 1.6 billion dollars heading it all is Sotheby's chairman Bill Ruprecht I met with him a few hours before one of many auctions they hold here in New York each week tonight you're going to have a lot of people sitting there who will spend millions without even thinking like oh my we might buy a pack of gum well I think they'll be thinking there is nothing to focus your mind like millions of dollars being associated with a week or not I don't don't miss think what it means to spend a couple of million dollars in a couple of seconds it's a powerful thing that really does get your heart moving over the years Sotheby's has options some of the world's most famous and expensive collections including the estate of the Duke and Duchess of Windsor personal items from Jacqueline Kennedy Onassis and even the bones of a Tyrannosaurus Rex they've made an art of auctioning art they shattered records with van Gogh's irises and a Renoir that sold for 78 million dollars but what happens on the auction floor is only a small part of Sotheby's operation their Manhattan offices encompass ten stories occupying 400,000 square feet they have 43 different departments specializing in everything from art to antiquities manuscripts to memorabilia their inventory is a revolving door last year they sold more than 110,000 items they continually search the world for new pieces to acquire we pretty much operate on what we call the 3ds basically death debt and divorce it I have to say we get a lot of phone calls from people because they're simply in dire straits and they need money acquiring the rights to sell a private collection or a multi-million dollar estate is a competitive business to maintain their edge Sotheby's employs a team of specialists to evaluate authenticate and appraise anything tucked away in an apartment on Manhattan's Upper East Side is a treasure trove of antiques designer John Christensen is moving and wants to sell his extensive collection of furnishings so Sotheby's has dispatched Muffy Cunningham and Peter Hathaway two of its furniture experts to take a look what we're gonna have to do I'm afraid is make your life hell for a few days they go from one end of the apartment to the other evaluating everything it I would estimated about seven to nine or eight to twelve thousand auctions the estimate should be really aggressive it's a very rare form it can get messy to get to the bottom of this eighteenth-century chair the recently added black webbing has to go sorry to make such a mess wonder if anybody huh but the process doesn't end there behind closed doors back at Sotheby's any item that's acquired is reexamined by more specialists whether it's a piece of furniture or a painting everything gets appraised and authenticated we do the research from the beginning when a picture comes in here for this by Miro or Monet or anybody we begin from scratch we make no assumptions anyone can contact Sotheby's but not every item is worthy of their auction block it may be priceless to you but nsv to them nsv means no sale value and we have become quite articulate over the years about the different ways you can say no sorry it's just not you know it's not doesn't have any value but the news isn't always bad one lucky person found a rare first printing of the Declaration of Independence hidden in the back of a picture frame it was purchased at a flea market for $4 it's sold for more than 8 million the stakes are high and the competition is fierce the auction world was shocked when some of these and it's the biggest rival Christie's were accused by the Justice Department of price-fixing by conspiring to charge sellers inflated commissions Sotheby's former chairman a alfred Taubman and former CEO diana brooks were both found guilty for many of the staff and many of our clients as there was really a breach of trust there's no question it was a really disturbing and difficult time for everybody associated with the business and we're really glad it's lots of behind us despite the scandal bad publicity and millions of dollars in fines South Ibiza is still able to land some of the biggest and best collections when a multi-million dollar jewelry collection from the estate of a New York socialite came up for sale so the base had to prove they could out market the other auction houses I can't tell you how many sleepless nights of staying up and worrying and thinking how are we gonna outsmart them how are we gonna provide a proposal and a marketing plan is gonna add to our competitors the winning strategy showcased the collection with a 16 City World Tour culminating with a black-tie reception in New York City when we come back millions of dollars in diamonds rubies and emeralds go on the block ten thousand and I find out what it takes to sell sell sell those doors will continue in a moment here on Amy behind closed doors with John London continues here on Amy this jewelry is worth millions of dollars and the collection has been shown around the world prospective buyers have had a chance to see it touch it and try it on tonight they'll have a chance to buy it at an exclusive seventy's auction in New York City ten fellas the Janus 11 collection is a hundred and fifty four pieces of jewelry that belonged to one woman and you'll find that there are pieces of every color every shape many designers Janice Levin was a wealthy New Yorker and a connoisseur of fine jewelry Lisa Hubbard traveled with the collection and gave me a personal preview the shapes are all different it was hard not to be dazzled by this extraordinary jewelry man yes you may let me help this platinum and diamond necklace designed by Harry Winston took my breath away so that no matter how you turn its glitters and it's all Sparkle plenty and it is it's over 150 carats of diamonds it's just amazing how many carats is this 30 7.25 the ring was estimated to go for between one and one and a half million dollars but for me the most impressive item was this emerald and diamond necklace the 12 emeralds were from the collection of the Maharaja of Indore pre-sale estimate more than a million dollars this is a piece that could start driving something up because somebody wants the most special piece of a collection even right exactly right Lisa knows all about the prices she'll be the auctioneer for the levan collection whether it's jewelry or art much of the success of an auction rest on the auctioneer is ability to sell now what makes a good auctioneer the ability to kind of establish instant rapport do you have to be outgoing you have to inspire confidence you have to set the pace you have to keep them happy you know it's it's a performance for the option here is it's a bit of a juggling act they have to keep an eye on a roomful of bidders know the items and their starting prices and keep the bids straight it's high speed and high pressure before auctioneers face a real audience they train for six months with mock auctions well John I gather you're ready to take your first lesson in auction I got a rare opportunity to find out just how tough it is Hugh hilda's Lee a trainer and ex production here was my coach you are in complete control of the room you create the enthusiasm you drive them along it's a position of ultimate power you like I'd be selling three items starting with an antique clock ladies and gentlemen we're starting with lot 3 which is an 18th century clock if you'll take a look at it wonderfully whimsical decorative and our bidding today starts at $50,000 do I see $50,000 50 on the phones we have $50,000 it really didn't seem that difficult at first do I hear 130 130 then I'll go with $120,000 you own lot number three the next round promised to be more challenging I was sure Hugh had something planned I just didn't know what it would be do I hear an opening bid of $12,000 that is the assessed value it could be worth much much more no matter what I said no one would raise a paddle we're just testing you we were hanging you out to dry to see how you do what do you do when you're out there if nobody puts you go on to the next larger possibility the most difficult thing was keeping track of the price increments as the bids increased 9,000 where you go 9,500 back down the back roads go pretty okay 10,000 here in the front row 1,500 2,000 25 deal 12,000 not 2,000 you assured me that with enough practice you find a rhythm and it all becomes second nature all right I say it's old but tonight's auction is no game the stakes are high and millions of dollars hang in the balance behind closed doors a fortune and jewelry waits to be sold the collection is estimated to be worth between 6 and 9 million dollars so everyone's every move is carefully washed clothes circuit cameras are everywhere they're monitored around the clock from this control room backstage there is a nervous energy as months of preparation come down to this moment out front the house is packed with bidders waiting for their chance to spend millions while hundreds of guests register and pick up their paddles behind the scenes the jewelry models make last-minute adjustments to protect the integrity of the auction and the privacy of Sotheby's elite clientele we agreed not to show their faces not all of the bidders will be on the auction floor three phone banks allow clients to call in and place bids from anywhere in the world like partner auctioneer Lisa Hubbard takes her place center stage at 7 p.m. sharp the auction begins these private sky boxes are reserved for some of these high rollers who get a bird's-eye view of the action the first thing that hits you is the amount of money being bid and how quickly it all happens most items are sold in 40 to 60 seconds some bidders are looking for a bargain others are intent on winning at any cost for them the game plan is simple stick your hand up in the air and keep it there tell you puts a lot of people off one by one the items sell and the prices soar then I move ringside next to the phone bidders with a little help from set bright of Sotheby's I'll be bidding for a client in Hong Kong it's my chance to get into the game but with someone else's money I can't tell you who my client is but he's in the market for this Van Cleef & Arpels necklace Oh I'm also on a budget the client has set a top bid of $15,000 they say 975 15 8500 11 11 11 12 13 15 I guess we shouldn't call more in time for me it was over in just 14 seconds the necklace ended up selling for $22,000 but into the evening the prices have skyrocketed and the audience is dwindled now only the serious shoppers are left that diamond and emerald necklace I tried on sells for just under 1 million dollars fair warning but that isn't the most costly item in the collection there's still a simple little pair of 22 carat diamond earrings in all 11 estates sold for more than nine point two million dollars comfortably hitting the high end of the pre-sale estimates that's one more successful option to their credit but the staff here must continue to search the world for rare and valuable items to collect himself behind closed doors at Sotheby's auction house I'd like to extend my personal thanks to all those who helped us gain unprecedented access to make this show possible please join us next time and once again we go behind closed doors for a knee I'm Joan Lunden
