The Watch Experts

Massimo Barracca had to wonder whether the blackdialed Patek Philippe Ref. 2526 would live up to his expectations. In the Christie’s auction catalog it was absolutely beautiful, but he also worried about outwitting other highpowered bidders. Would his trek to New York be worthwhile?

His alarm rang at 4 A.M. It was an ungodly hour, especially after a night of welcoming patrons to his popular Miami Beach restaurant, Café Milano. He cursed; momentarily perturbed that his previously cancelled flight to New York had been rescheduled for 6 A.M. Doubts also filtered through his mind about a horological treasure that had long eluded him.

The allure of this special timepiece ultimately persuaded him to hurry. Bewitched by its lustrous black lacquered dial, a unique detail that potentially made this Patek Philippe timepiece with diamond indices a $300,000 rarity, he donned a blue cashmere blazer, jeans, and a blue cap with fur trim. Grabbing a satchel filled with Pateks, he looked very Italian, and that was to be expected. Known internationally as “Mr. Patek Philippe,” this respected watch dealer and collector was preparing for another adventurous, Marco Polo-styled quest to land a great treasure.

“In 25 years I’ve never seen an automatic Patek Philippe Ref. 2526 with a black dial, and that makes it very exciting, very appealing,” raves Massimo Barracca, 47, one of the vintage market’s “founding fathers” who first started buying pedigreed pieces in the early 1980’s. “I have a similar automatic with the normal (white) dial, but I’d really like to move up to this stunning piece,” confessed Barracca once he overcame the flight delays caused by a snowstorm and arrived at Christie’s for the December, 2003 auction. “Now I just want to check the watch, because condition is everything. Only 50 of these watches were made (in the 1960’s), and I love its looks. But there’s always a surprise at an auction. It’s like action at a casino. There’s a moment, you have to seize, and who knows, maybe the Patek Philippe museum will bid up the price.”

Aggressively competing with collectors to stock their museum with such rarities as perpetual calendar chronographs and Calatravas with triple date apertures, the brandmeisters at Patek Philippe have sent prices soaring. Now investment quality blue chips with exquisitely crafted dials in pristine condition (the dial’s condition is totally critical today,” insists Barracca) are appreciating 25% to 50% annually.

Truth be told, Patek’s bullishness has helped him to build a flourishing business (besides his SenzaTempo watch and furniture gallery in Miami Beach, he sells timepieces through his www.watchcommander.com Website). But, Barracca will face a daunting task at Christie’s if the Patek Philippe museum pursues Lot 213: the black-dialed Ref. 2526 with the 36-mm platinum case.

“This is definitely the top watch at this auction, but when the museum wants something, that’s it,” rues Barracca, the author of four coffee table-sized watch books, whose own collection is valued at over $10 million. “They will (phone) bid on this watch for sure, and only if I’m lucky can I beat them. It’s of course very satisfying to win this mano-a-mano battle. And I’ve done that once in awhile. But they don’t have this special plus, plus, plus watch in their museum, so it could be very difficult for me to compete.”

Expecting the black-dialed wonder to sell for $250,000, Barracca feels it’s imperative to apply a test that figures in all of his premium priced purchases (anything over $5,000). Entering Christie’s well-lit preview gallery, which is lined with every lot to be auctioned that afternoon, this heavily-accented, Milan native exclaims, “no matter what the watch, it must speak to you. Expert collectors, newcomers, they all must hold pieces in their hands, see them, feel them (a subtle, yet cogent criticism of Internet buying), study them, and check their condition. Such preparation is everything.”

Taking out a loupe with a high-powered light, Barracca soon turns into a Sherlock Holmes, meticulously scrutinizing the details of a stainless steel Jaeger-LeCoultre chronograph. Holding this 37-mm piece close to his eye, he exclaims, “this oversized watch is rare because of its dimensions, plus it has a black dial, and the condition of the case is fantastic. You need a good loupe to determine if there’s extra wear on the case. This one hasn’t been polished. That’s important, absolutely. The engraved numbers are very fresh.”

Continuing to study the Jaeger, Barracca seems awed by its stunning, original dial. “Dials are almost everything in complicated watches, about 70% of a watch’s value,” he stresses. “A black dial in a chrono is always the rarest, and very popular today, maybe even three times the value of a white dial. Why? The dial is the face of the watch, the sexy part, the allure.”

After making several notations in his Christie’s catalog, Barracca looks at Lot 20, a 14-kt gold asymmetrical electric Hamilton wristwatch (circa 1952). “This modern-looking shape is very popular today, and the solid gold case makes it quite rare,” explains Barracca, who regularly advises Christie’s and Sotheby’s on market trends. “The band is original, so there’s something more. Its $1,200 to $1,500 estimate is really good.” The Hamilton obviously has a unique shape, and as Barracca canvasses the gallery, he’s searching for other distinctive “particularities.”

Looking at a Patek Philippe with Breguet numerals, and a watch with iridium, luminous hands, he says, “These types of specific particularities, or combinations, especially in dials, are very influential in determining prices. A watch can jump 50%, even 150%, in value just because of some unusual feature or design.” Discovering these rare combinations demands much more detective work than in the early 1980’s when he first began exploring “virgin territory” for antique watches. “Then New York and Italian jewelers scoffed at his interest in vintage pieces. They often called him a fool, and questioned his sanity. But in those halcyon days when he left the security of his father’s prosperous restaurant business in Milan, he could buy 18-kt gold Rolex bubble backs for $200 to $300, or a rare pink-gold Patek Philippe chronograph with square push pieces for $5,000 (some of these chronographs are now valued between $50,000 and $200,000).

Now a new world, one that may well be “over the top,” faces this charismatic and inveterate auction-goer. Watch prices are reaching once unimaginable heights, and amid this frenzied activity, Barracca’s clients have grown far more selective, and investment conscious. They no longer tell him, “find me some pretty watches.” Today all their talk is about “trends,” “market forces,” and the variables that have transformed certain timepieces into “hot commodities.” That changing landscape has dramatically complicated Barracca’s international searches for prized timepieces. Now, he’s compelled to study all of the trends, and to somehow forecast where the market is headed, he can’t simply be swayed by his long-held belief in his taste.

Strongly influenced by Barracca’s watch valuation formula, Sotheby’s Daryn Schnipper, the senior vice-president and director of international watches and clocks, first lauds Barracca’s “eye,” or vision, then adds, “He has this great level of expertise. That’s why I talk to him regularly. He always told me, ‘judge how a watch looks, what are the special design features, how pleasing is it to the eye?’” Collectors still appreciate stunning, uniquely designed timepieces, and Barracca’s “eye” for detail is certainly showcased in his SenzaTempo gallery, where he’s surrounded by antique model battleships, art deco posters and an array of fine modernistic furniture.

But to reap the market’s new whirlwind, those artistic, very Milanese sensibilities must be coupled with hard-nosed business sense. Realizing years ago that a brand name is crucial to price valuations, he hitched his star to Patek Philippe, and its aggressive buying of timepieces at auctions (to give its’ contemporary watches added investment allure, and to stock the company museum in Geneva, Switzerland). Patek Philippe’s spirited market forays immeasurably boosted the value of his own hold- ings, and now Barracca believes another “big-named player is ready to step up to the plate.”

“Patek Philippe used to be the only company that supported auction houses, but now Vacheron Constantin is interested in pieces for their museum (Rolex has also become a player at auctions), and that’s making prices go way up,” says Barracca. “A Vacheron once selling for $15,000 to $20,000 recently did $90,000 plus commission. After being quiet for a long time, Vacheron is now in a very bullish period. The museum [Ed. Note: and their upcoming 250-year anniversary] is definitely making the brand the subject of speculation, motivating people to bid high.”

Continuing to look for “bargains” that will impress his worldwide clients, Barracca examines a few more Vacheron Constantins, and an 18-kt, square-shaped Patek Philippe from 1949. Admiring its’ unusual shape, baton indices, and silver brushed dial, he gives it high marks in his catalog after applying the “feel” test. “Newcomers and even experienced collectors must hold a watch in their hands, rub the parts with their fingers,” demands Barracca, first holding the Patek, and then exchanging it for a white gold automatic. “The edge of this case isn’t smooth. That means the watch has never been polished. I like that. Plus this watch feels solid, extremely substantial, and it’s a rare piece, with very few scratches.”

Radiant, mint condition watch faces, along with a solidity that goes to the heart of meticulously crafted heirlooms, are not the only criteria factoring into Barracca’s decisions. He also advises collectors to closely study a watch’s hallmarks, such as the gold Head of Medusas which along with confirming “Swiss made” authenticity, are another sign of condition. Peering through his loupe, Barracca holds a pink-gold Patek Philippe with a pink dial (”this combination is very rare”), and demands, “look at that Medusa Head. You can see it! That means the case hasn’t been polished very much. It’s rough but it hasn’t faded. The case is in absolutely fine condition.”

Then edging close to his “labor of love,” he stares at the circa 1960 black-dialed Patek Philippe Ref. 2526, the long-desired treasure that launched his trip to New York in the first place. While inspecting its minutest details, he asks a Christie’s employee, “Do you have any certification papers for this watch?” An attendant soon returns with a few papers, but Barracca is not impressed. “I want to see an extract from the archive stating that this watch was born with this black dial. It is a Patek Philippe dial, that’s 100% sure, but there’s the possibility that it isn’t the original dial.”

Told that there weren’t any more documents, Barracca looks deeply disappointed. Still eyeing the timepiece, he says, “The dial is incredible. Never touched, it has its original gloss. This piece could sell for $300,000. But I have my doubts if it originally had a black dial. I need to think about this over lunch.”

If Barracca had stayed in Miami Beach, and been content with the catalog’s glowing description, he probably would’ve bid up to $250,000 for the watch over the telephone. Now, as he takes a bite of a prosciutto and cheese sandwich, the great anticipation of owning this unusual timepiece has turned sour. Looking at his pink-gold, split second Patek rattrapante, he realizes that the auction will soon begin, and says, “The black dial is fantastic. But there are just too many questions. I need a written record from the manufacture (complicating matters, at times these documents just don’t exist) stating that it’s the original face.”

Once the auction begins, Barracca sits in the back of the hall to get a full view of the major players. He’s impressed by the early action, particularly the “strong prices,” and seems genuinely interested in acquiring a 1944 pink-gold, split second Patek. “This watch with a very unusual two-tone dial is very rare,” he marvels. “It’s the only one I’ve seen in the last 25 years.” But that particular timepiece and a few Vacheron Constantins that he’d admired earlier are quickly sold without him once waving his paddle. Admittedly “very cautious,” he waits until Lot 32, a pinkgold, triple calendar Vacheron, before he makes a very conservative $4,300 bid.

The bidding climbs to $5,000, but Barracca refuses to make another offer. “Once the bidding went past my $4,300, that was it, you have to stick to your limits,” he says once the watch is sold. “At an auction it’s very easy to get caught up in the testosterone, the excitement. But everyone must have a budget, and not lose sight of it. Otherwise it can be very dangerous.” A few moments later, when an 18-kt Patek with a sweep seconds is offered, Barracca watches the bids climb from $4,500, to $5,000, and on to $5,500. Remaining poker-faced, he carefully eyes who’s bidding in the audience, and the amount of phone bids being taken. Once the bidding hits $6,000, he finally “seizes the moment.” When the auctioneer halts the proceedings to wait for a phone bid, Barracca nods at another dealer signaling his willingness to forge a watch buying partnership. Together, at the very last moment, they acquire the piece for $6,500.

“We got that watch for nothing because we were patient,” revels Barracca.” Clearly skeptical about buying expensive items on the Internet, Barracca worries that many condition reports provided by auction houses are inadequate, or not specific enough. And, if you do make an Internet purchase, you should make sure that it offers a full warranty and a buy-back guarantee.

As Barracca talks about the Internet’s failings, he eyes two of his competitors bidding against each other. One is Milanese dealer Davide Parmigiani, said to be “the biggest player in Italy,” and Christie’s former watch specialist Michael Friedman, who’s reportedly representing rockn- roll legend/avid collector Eric Clapton. The bidding for Lot 51, a moon phase perpetual calendar Patek Philippe, soon grows intense. Barracca “loves” this piece, but instead of competing, he lets Parmigiani acquire it for $83,650.

Remaining the cautious observer for the next 45 minutes, he’s finally tempted to bid on that “very specific” Patek Philippe with Breguet numerals. But once Friedman (who has a cell phone wedged to his ear) aggressively pushed the price to $26,000, he again bows out. Looking bemused, he says, “That’s three watches in a row that Friedman has bought (paying $20,000 for a 1952 water-resistant Patek, and $26,000 for a stainless steel Patek). I don’t know if it’s for Clapton or not, but it sure seems like someone went on a holiday binge.”

Looking into his green carrying case for several minutes (it’s crammed with $2.6 million worth of vintage timepieces), Barracca ignores the sale of the next 7 watches. Remarking that Lot 130, a pink-gold Patek with a silvered matte dial has “a wonderful original bracelet,” he asks a dealer sitting nearby, “Do I have to bid against you?” The two men laugh, and in a few moments, Barracca seals the ($7,768) purchase with a discreet nod at the auctioneer. “It’s a very unusual piece,” he crows, “the bracelet alone is worth $4,000.”

Admitting that “there are all sorts of politics and intrigues” at auctions, he again urges inexperienced collectors to “study the prices and the condition reports, but don’t buy anything, at least not in the beginning. A newcomer can easily get overwhelmed.” Parmigiani’s free spending could certainly unnerve a novice. In quick succession he buys two five-figure watches (one is a stunning 18-kt gold, onyx and enamel Cartier table clock). Hardly satisfied, he then acquires a perpetual calendar Patek Philippe chronograph for $240,000, a watch Barracca laughingly dismisses as “a major gamble,” because the lugs and the case have been completely polished, According to Barracca, this quarter million dollar chronograph is one “very ugly watch.”

It’s now the moment of truth.

After three hours of waiting, considering his options, and resisting many tempting timepieces, Barracca must decide if he really wants to pass on the black-dialed Patek Philippe Ref. 2526. Never second-guessing himself, even after the bidding quickly climbs to $180,000, Barracca just sits on his paddle, forgetting that he “absolutely adored” this rarity just a few hours ago. A phone bid takes the price to $190,000, but no one in the gallery makes a move. Looking crestfallen, the auctioneer keeps yelling “190, 190, 190,” and finally says, “The watch is unsold.”

“It just didn’t have the pedigree,” announces Barracca, convinced that a member of the audience placed the piece at Christie’s. Refusing to name him, he says, “He knows my taste, and was sure I’d buy it. He just couldn’t show any certification, so no wonder he doesn’t look too happy.” Barracca is elated. Besides acquiring a few bargain-priced gems, and having his doubts about the black-dialed Patek validated by the lack of interest, he’s looking forward to a late afternoon engagement.

Leaving Christie’s, he hurries past Davide Parmigiani, and Osvaldo Patrizzi, the chairman of Antiquorum, who’s standing outside the gallery. After exchanging a few pleasantries with them, he says, “If I’m shown the paperwork and certification, then I’ll bid the next time. It’s a beautiful watch.”

Note: This article enitled “Seizing the Moment” was written by Ed Kiersh and originally appeared in Watch Time (2004 Issue 2).