Luxury Watch Investment: Is It Better Than Stocks, Real Estate and Gold?
Investment4 Minutes Read

Luxury Watch Investment: Is It Better Than Stocks, Real Estate and Gold?

August 8, 2022 Share

A luxury watch on the wrist can have much more value than its style and attractive look. Luxury watch investment has a great ROI if done wisely. Statistics prove that it is the best form of investment nowadays, surpassing real estate, stocks, and gold investments.

YES! When considered wisely, luxury watch investment can be a worthwhile lifetime decision. Few goods provide as much potential for financial gain, enjoyment, and investment as a high-end watch.

Don’t you think it would be great if you could spend money on something you genuinely desire, enjoy it for a long time, and build wealth while doing so, then sell it for a profit? In light of this, we’re discussing whether “investment watches” exist and, if so, which models you would want to take into consideration.

Why Invest In Luxury Watches?

You can use wristwatches for more than just keeping track of the time. They hold the heritage, memories, experiences, and history of the wearers. One of Patek Philippe‘s catchphrases is: “you never actually own a luxury watch. You merely look after it for the next generation.” In that context, luxury watches serve as symbols of their owners. Once they are gone, they continue to tell their stories.

Did you know that the average cost of a second-hand Rolex increased from a little under $5,000 to over $13,000? The value of the brand’s watches has increased by the same amount since the beginning of the epidemic as it did during the five years prior, suggesting that this trend is only expected to intensify. If you’re thinking about investing in a Rolex, it’s recommended to go for the Daytona, with an average pre-owned price of over $30,000, which has appreciated the most with time, or the stainless-steel Submariner Ref. 16610.

How To Start Your Luxury Watch Investment Journey?

Making an intelligent decision involves several important considerations, including choosing the proper brand and model, finding a watch in excellent condition, and purchasing pre-owned pieces. Pay attention to these three suggestions, and your investment will certainly pay off. 

Which Brands Are Worth the Investment?

There are a lot of brands, with Rolex being the king, to ensure a worthy luxury watches investment. It’s widely known that extremely costly, unique watches from Patek Philippe fetch high prices at auctions, but with Rolex, you may spend less and still get more. As a general rule, stay with stainless steel sports watches, such as the Submariner, GMT-Master, Explorer, etc., which are the most well-liked models in the lineup and start at about £3,500. There are several Rolex options available at Watchfinder.

How To Make the Best Out of Your Luxury Watch Investment?

Boxes and papers aren’t always necessary if you’re buying a watch to keep, but if you’re buying it as an investment, they can provide you with a competitive advantage in the resale market. Collectors prefer complete items, so a watch that still has all the accessories it had when it was new is likely to fetch top dollar in the future. Although there will be a small price at purchase, it will pay out in the long run.

A watch’s condition is crucial as well; ideally, you’d want one that has been well-maintained, seen little repair, and had any servicing performed by a skilled watchmaker. 

Gold And Silver Are Excellent Investments… For Making Watches

Now, you might be asking yourself (especially women) why not invest in gold or silver instead? Although gold and silver are excellent assets to utilise as a hedge against inflation, they do not provide the highest return on investment.

The global market for luxury watches has produced an ROI that is four times that of gold and twelve times that of silver over the last five years. Another indication that precious metals are worth more when used to produce even more costly watches is the rising trajectory of luxury watches over time contrasted to the fairly flat ROI that you see with silver and gold.

Top 3 Luxury Watches Investments You Can Make in 2022

Rolex Submariner ref. 116610LV

The Rolex Submariner was introduced in 1953 for professional divers, and both its value and design have improved over time. For example, the Rolex Submariner ref. 116610LV, commonly referred to as the “Rolex Hulk,” is regarded as one of the most valuable—and thus rarest—watches the watch company has to offer. On Sotheby’s website, the watch is listed for more than US$12,000.

Image courtesy of The Watch Club

Patek Philippe Nautilus 5711

American consumers began to recognise the financial potential of Swiss watches in 2022, and Patek Philippe was at the top of many lists thanks to the legendary Nautilus 5711/1A watch. However, Patek Philippe announced on their website this year that they were no longer making the storied timepiece. Even though it was a sombre goodbye, the watch’s resale value increased. The timepiece brought US$6.5 million at auction in December 2021. According to Sotheby’s, this watch will set you back more than US$60,000.

Image courtesy of Wind Vintage

Audemars Piguet Royal Oak

A vintage Audemars Piguet Royal Oak watch fetched more than US$1 million at an auction in May 2022. Additionally, Audemars Piguet, a watch company, saw an increase in revenue of almost 30% to US$1.6 billion last year. The brand and Patek were on equal footing economically as a result of that rise. Clearly, Audemars Piguet is a watch company to keep an eye on since it can end up being very valuable to you in the future.

Image courtesy of Horbiter

Some Tips To Make Sure That Your Luxury Watch Investment is a Good One:

  • Watches that will soon be eliminated should be avoided. This frequently results in a surge in interest in a specific watch and, as a result, a rise in the selling price of that watch. For instance, the Rolex “Hulk” saw a high in sales, pricing, and attractiveness following the announcement that it would be discontinued.
  • Some watches, such as limited edition or rare collector’s models, are quite popular with purchasers, while others may be a total bust on the used market. Take your time and make a thoughtful decision in these circumstances.

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Author: perihan