Watches as an investment

Many people derive immense pleasure from acquiring stylish, functional watches from renowned watch brands. These special timepieces are collected, cherished, and cared for—a truly enjoyable hobby. However, watches are increasingly being purchased not just for pleasure, but as an investment. Collectors increasingly view watches as an investment and closely monitor price trends. This article explores the topic of watches as an investment, explains what to consider when making sensible investments in luxury watches, and presents some high-quality wristwatches that appreciate in value.

Are watches suitable as an investment?

Due to the high volatility of the stock market and the historically low interest rates paid by banks, the demand for alternative investments is growing. This is why luxury watches are becoming the focus of affluent investors. Indeed, a watch can be a worthwhile investment. Various models that have attracted attention through rapid appreciation in value have impressively demonstrated this in the past. However, one should be aware that there is no guarantee that a watch will experience an increase in value. As with so many investments, the same applies to watches: investors must be able to live with a certain amount of risk. If that is the case, buying a watch is an excellent way to combine your personal passion and love of (vintage) watches with a promising financial investment.

Watches as an investment - what should you pay attention to?

Investors want one thing above all else: a healthy return. Of course, no one can predict with absolute certainty how market prices will develop. Nevertheless, there are some criteria that can increase the likelihood of emerging as a "winner" from an investment. Below, we'll explore these criteria and look at what to look for when purchasing a watch as an investment.

Manufactory

In the watch market, much revolves around the manufacturer and its reputation. While purchasing models from relatively unknown and new watch brands carries a fairly high risk, you're more likely to be on the safe side with a model from a well-known brand. Collectibles from renowned brands such as Patek Philippe, Rolex, Vacheron Constantin, or Audemars Piguet are considered relatively safe investments, with which you can generally go wrong.

Edition

Watches produced in very limited editions usually have more potential to appreciate in value than those released in large quantities. The fewer watches of a popular model there are, the more demand exceeds supply, which in turn increases the watch's value and allows it to be sold for a higher price.

material

The extent to which a watch's value increases depending on its material is worth a closer look. The material can be crucial, but as a single factor, it is only partially meaningful. Of course, it is advantageous if a watch is made of high-quality materials, such as gold or platinum. However, the mere fact that a model is made of gold does not guarantee the buyer an increase in value.

Condition

Collectibles can sell for a high price, especially if they are in excellent condition. This applies to watches as much as to most other tangible assets. Therefore, anyone who buys an expensive watch from Patek Philippe, Rolex, Vacheron Constantin, or Audemars Piguet should, if possible, treat it with the utmost care and wear it as little as possible. This is the only way to ensure that the watch doesn't lose value due to signs of wear.

Authentication

The watch market is notoriously not free from fraudsters seeking to sell counterfeit luxury watches. Therefore, authentication—that is, proof of a watch's authenticity—plays a crucial role. In practice, watches without a manufacturer's certificate usually only fetch up to 50% of their actual price. When purchasing a watch, it therefore makes good sense to immediately rule out models without a manufacturer's certificate and warranty. These are, after all, not suitable as an investment.

Resale value

To ensure a worthwhile investment, it's essential to take a look at the price trends of the models you're considering over the past few months and years. Combined with a comparison of the price trends of similar luxury watches, this provides a well-founded assessment of their resale value.

Top watches with increased value

As announced, we are now turning our attention to watch brands and models that are sought-after as investments. Due to the difficulty of reliably predicting appreciation potential, we obviously do not want to make specific investment recommendations. However, we do want to draw attention to companies and models that enjoy high demand and a strong reputation in the world of watches.

Rolex

Whether it's a Rolex Daytona , a Rolex Submariner, or another Rolex collector's item, watches from this renowned manufacturer command extremely high prices on the market. For example, the aforementioned luxury watches, the Rolex Daytona and the Rolex Submariner, are traded well above their list price, making them ideal for anyone looking to purchase a watch as an investment. Demand is particularly high for Rolex steel watches, which still promise tremendous returns.

Audemars Piguet

An Audemars Piguet watch is pure luxury! The Swiss manufacturer produces only approximately 26,000 watches annually, meaning supply significantly undercuts demand – making it an excellent investment. Watches from the Audemars Piguet Royal Oak Offshore collection, in particular, regularly fetch top prices at auctions, suggesting that this is a profitable investment.

Patek Philippe

When it comes to watches as an investment, the Patek Philippe brand is a must. The best-selling model is the legendary Patek Philippe Nautilus , whose prices are literally skyrocketing. But the Patek Philippe Nautilus isn't the only model from the company that's a good investment. In fact, many Patek Philippe wristwatches and pocket watches can be considered attractive investments.

omega

Investing in an Omega Speedmaster or a similarly popular Omega model is most likely a good idea. Especially with the Omega Speedmaster, market observers sometimes get the feeling that the price is about to rise exponentially. While – as mentioned several times – there's no guarantee that prices will rise, there's much to suggest that Omega luxury watches generally not only maintain their value but actually increase over time.

A. Lange & Söhne

A. Lange & Söhne is a relatively small German watch manufacturer that supplies the market with approximately 5,500 watches annually. Because demand for these exclusive watches is high, their value often increases the moment they are purchased directly from the manufacturer at the list price. In other words, an A. Lange & Söhne watch in good condition can often sell for well above the manufacturer's asking price.

Tag Heuer

Anyone who owns a vintage Tag Heuer watch has probably hit the jackpot. Well-preserved vintage models from the Swiss watch manufacturer are rare and command prices that every investor would dream of. Tag Heuer is another good example of a luxury watch manufacturer that offers numerous models that are suitable as investments.

IWC

IWC watches impress with their classic designs and superior functionality. It's no wonder, then, that investors can expect attractive returns. The chances of making money by purchasing and later reselling an IWC watch are excellent, given the prices these watches fetch on the secondary market.

Used watches as an investment

The fact is: For a watch to be a valuable investment, it doesn't necessarily have to be brand new. Even used watches from renowned brands – such as Rolex, Patek Philippe, Vacheron Constantin, or Audemars Piguet – can serve as profitable assets that increase in value over the years. The most important factor here is the condition of the used watch. A used watch in excellent condition is naturally worth much more than one with more obvious signs of wear and tear that may be a few years old. Therefore, if you want to use used watches as an investment, you should definitely have the condition of the watch assessed by an expert with specialist knowledge. This is the only way to draw sound conclusions about how the watch's value might develop.

Conclusion: Watches as an investment

Whether from Patek Philippe, Rolex, Vacheron Constantin, IWC, or Audemars Piguet, watch models from brands celebrated around the world represent attractive investment options. Those who follow a few tips, pay attention to certain criteria when purchasing timepieces, and don't invest without expert knowledge have a good chance of rising prices for a wristwatch from one of the "big" brands, making it a worthwhile investment.