Watches as an investment – ​​What you should consider

Watches accompany us constantly in our everyday lives. For some, a watch is associated with personal memories, perhaps even because they received it from a very special person. For others, it's a prestige object, a symbol of achievement, worn with pride.

Sometimes watches are simply a matter of taste. But the watch business goes much further: Today, watches offer a different kind of investment. A very exclusive market has developed, especially in recent years, around certain unique pieces and models. In times of low interest rates and inflation, many are looking for a new way to safely invest their hard-earned money and, if possible, even increase it.

But are watches a good and sensible investment?

The answer is: “It depends on various factors.”

If you want to get into investing and trading watches and become successful, there are a few things you should keep in mind. The watch trading market has indeed grown significantly in recent years. Especially at auctions held by prestigious houses, more and more unique watches are being found among the exhibits. There are a growing number of investors who want to get involved in this sector. As a result, prices are naturally rising, as is the potential resale value of your watch.

However, you can't simply sell any watch profitably. The hype is always only about very specific and select pieces. These can be either very high-quality watches or watches from well-known, deceased watchmakers. Often, they are also unique collector's items from luxury brands. Vintage models in particular, which have become collector's items over time due to their limited availability, have seen their prices rise. Of course, this always also includes the collector's value.

Sometimes, however, even the simplest watches sell for a high price because they have a particular history or were worn by a famous person: "This watch belonged to a former president" or "This one was worn by Whitney Houston herself." Of course, such a sale always requires an emotional connection to the watch to drive up the price.

The most well-known example of this is the 2017 auction in which Paul Newman's personal Daytona was sold for an incredible $17.75 million . However, it is often difficult to predict which watches will increase in price in the future and is usually only speculation. Therefore, it is particularly recommended for beginners to focus on the physical value of the watches, because this remains constant. This includes not only the value of the precious metals they contain, but also the expensive craftsmanship and the renowned manufacturer of the watch. Because this value remains constant, watches are comparatively less vulnerable to crises and hectic economic changes. This crisis-proofness also applies to collector watches, as their availability will never increase. So-called panic sales are rare with vintage models. There are also certain classics among them. They receive their classification for their excellent watchmaking craftsmanship and their status as icons.

First, there's the most well-known – the Rolex. For some specific models, the waiting list is long. When it comes to vintage sports watches from this brand, it's clear that all of these watches have retained their value very well, and some have even increased in value. Therefore, these watches are a pretty good long-term investment. The " Audemars Piquet Royal Oak " and the " Omega Speedmaster Professional " are also well-known examples.

However, finding out which new watches will become future icons requires a lot of research. This requires familiarizing yourself with the brand, its models, designs, and technology. Famous watches from well-known brands are generally relatively safe and stable investments. In the worst case, you won't lose anything, and in the best case, you'll increase your investment.

But while this type of investment is very exciting, you need a lot of patience. The value of watches doesn't simply increase overnight. Sometimes it takes many years. Even if you're convinced of the success of a particular watch, it often takes a long time for the wait to pay off and the investment to be worthwhile.

The most important thing is to buy a watch that you like so much that you can wear it yourself. This way, you won't be wasting your money, as it's already an asset. This way, you have an investment that's also wearable.