Should I Invest In A Luxury Watch?
2020-12-22

Should I Invest In A Luxury Watch?

 

These days many people end up creating personal attachments to their watches. Moreover, this happens more than any other type of product. One of the reasons for this is because we usually end up using these timepieces every day. They are both useful, fashionable and depending on the watch’s sentimental value they can be an emotional item to own. It is these very important elements that make wearing timepieces such a pleasure. However, investing a sizeable amount of cash in a watch can also create a sense of personal attachment.

 

This is because many people these days are now looking at purchasing luxury watches not just for sentimental or fashionable reasons but also as a means to invest their hard-earned money. This then raises the difficult question: Are watches worth investing in? Are they exempt from times of economic uncertainty? The short answer; it’s complicated. So, we decided to quickly dive into the world of luxury watches and analyze the benefits as well as difficulties that come with investing in the watch market.

 

Investing In High Value Watches

 

For a very long time, owning a luxury watch has been seen by many, as being no different to owning a vintage car or furniture. This has resulted in rapid growth within the watch industry by investors who are attempting to trade luxury watches, mostly in high-profile art and luxury auctions.

 

The biggest and most notable example is the auction of the watch that was once owned by the famous actor, Paul Newman. It was a Rolex Daytona that ended up selling for an incredible 17 million dollars in 2017. The auction also featured a wide selection of other luxury watches that also sold for very large prices. Now, while this may sound appetizing to any investor reading this, you must first realize that not every watch sold at auction will automatically appreciate thereafter. In fact, in most cases, only a few of those that are sold in auction ended up seeing a rise in value down the line. This is because most of the retail prices tend to vary. Plus, they are based on the hype generated by certain specific watch models.

 

In other words, there is not any rational explanation as to how these prices are determined, so it just depends on the day and how desperate those buying want it. Moreover, that same hype that pushes buyers to commit such obscene amounts of money is mostly generated around watches that were once owned by celebrities or achieved important milestones eg. first watch on the moon. So, while these stories may not have any value to the investor, they are all necessary to generate the type of buzz needed to increase the timepiece’s value. However, it’s a fact that such cases are rare and for obvious reasons can’t be manufactured.

 

Investing In A Watch That Retains Value

 

If you are considering investing in a watch that you can wear, then we would suggest buying a timepiece that comes at a much more affordable price. And one that can at the very least, retain its purchasing value. After all, like we mentioned before, there are very few watch models that actually see a significant rise in price over time and this is usually because of their scarcity or vintage value. To be specific, these vintage watches are the ones that have become major icons within their brands and are seen as “game-changers”. For instance, trying to purchase a Rolex Daytona, Submariner or even Sea-Dweller, will be difficult. As, there are hundreds of collectors desperate to get their hands on such classic timepieces. Another prime example is the Audemars Piguet Royal Oak or the vintage Omega Speedmaster Professional.

 

The benefit of investing in such vintage timepieces while difficult to acquire, is that they will normally either hold their value or see a slight jump in value over time. Needless to say, they offer up a safe investment, maybe not profitable, but safe at the very least. Another alternative option we would suggest is to invest in OEM watches instead. These watches involve providing all the necessary specifications and details of the watch that you want and handing over the details to a manufacturer to create the watch for you. Many companies use this method to craft unique or replica timepieces and sell them at affordable prices to the public. This should spare you spending so much money and time trying to purchase a vintage watch, as you can simply have one designed and customised to suit your own preferences! This in turn creates massive sentimental value and gives you confidence knowing that you made a solid and affordable purchasing investment.

 

Investing In The Potential Classics

 

This involves investing in watches that are potential classics and offer up a potential value increase as time goes by. However, it is essentially a gamble, as you have to predict which watches are most likely to be considered classics as time wears on. It’s tricky but it is something that can make for a rather fun and possibly successful experience. That is, if it is followed by thorough market research. This means familiarizing yourself with every watch brand, their models, as well as their unique craftsmanship and specifications.

 

In most cases, if you choose wisely, you will end up making a safe investment that should at least retain it’s value over time, and in the worst case scenario, you may only end up making a small loss. Some watches that fit this description include; the OMEGA Seamaster, the Panerai Luminor and the IWC Portugieser Chronograph, among many others. Investing in these watches is similar to going on an adventure. You may not be completely sure how the journey will end, be it successful or otherwise, but as long as you are well informed, you should still end up at your destination in relatively good shape.

 

Conclusion

 

In short, you must enter the watch market with realistic expectations. It is no different to investing in stocks. Albeit the watch market is a little less unstable, in comparison. To make a smart investment, you have to make sure you are well-familiar with all the watch brands, models, stories etc. Once you find the right timepiece, you should then be able to enjoy it, while you patiently wait for its value to increase over time.

<< Manufacturing

>> Diving Into The Grey Watch Market