I would concur with the local auctioneer you took it to. These are VERY common and given it's current state leads to the value. It's hallmarked for sterling silver which when dipped will look brand new. It's kind of cool to decode the hallmarks on it. It tells the watch's story. The crown (used to wind it) is known as an "onion crown" given that it looks like an onion
You can see some of the purple toning it has naturally taken on. Very common for silver to tarnish like that over many years sometimes showing beautiful shades of purple and iridescent blue. The enameling is very cool too.
I think it can be easily serviced with a set of hands, glass crystal, and movement overhaul as these were very common pocket watches with an abundance of parts available. It'll cost you far more to do that than it's worth, but if it has special meaning to you, it would be well worth it. I did that with my dad's cheap watch that he wore while in the military during the Vietnam era.
And if you have a grandchild, it might be nice to pass on to at the age when you first got it. Or maybe just to have for yourself. Sometimes its very cool to restore something to its former glory that otherwise would make it to the trash bin.