Emily Waterfall, the head of Bonhams’s jewelry department in Los Angeles, knew she was dealing with something special in November 2020, when she found herself inside a private storage facility surrounded by thousands of pieces of jewelry owned by Byron and Jill Crawford, a local couple who had devoted 40 years to collecting. “The first piece I opened was the Picasso Grand Faune,” Ms. Waterfall said. Like his fellow artists Alexander Calder, Salvador Dalí and Man Ray, Pablo Picasso dabbled in jewelry. To make the Grand Faune pendant, Picasso worked with the goldsmith François Hugo, who immortalized the impish-looking face of the half human, half goat creature in 23-karat gold.…