Watches are a constant part of our everyday lives. For some, the watch is associated with personal memories. Perhaps even because it was given to him by a very special person. For others, it is an object of prestige, an example of achievement that is worn with pride.
Sometimes watches are simply a matter of taste. But the watch business goes much further: nowadays, watches offer themselves as an investment of a different kind. A very exclusive market has formed around some unique pieces and models, especially in recent years. In times of low interest rates and inflation rates, many people are looking for a new way to invest their earned money safely and, if possible, even to increase it.
But are watches a good and sensible investment?
The answer is: “It depends on different factors.”
If you want to get into investing and trading in watches and become successful with it, there are a few things you should look out for.
In fact, the market around watch trading has grown a lot in recent years. Especially at auctions of prestigious houses, more and more unique watches can be found among the exhibits. There are more and more investors who want to get involved in this sector. In the course of this, of course, prices are also rising; thus also the potential sale value of your watch.
But you can’t just sell any watch for a profit. Because the hype is only ever about very specific and selected examples. These can be either very high quality watches or watches by famous deceased watchmakers. Often they are also unique collector’s models from luxury brands. Vintage models in particular, which have also become collectors’ models over time due to their low availability, have risen in price. Of course, this is also always the collector’s value.
Sometimes, however, the simplest watches are sold at a high price because they are associated with a particular story or were worn by a famous person: “This watch belonged to a former president” or “This one was worn by Whitney Houston herself”. For such a sale, of course, an emotional connection with the watch is always assumed in order to drive the price up.
Probably the most famous example of this is the 2017 auction where Paul Newman’s personal Daytona sold for an incredible $17.75 million. But which watches will rise in price in the future is often difficult to predict and mostly just speculation. Therefore, it is recommended, especially for beginners, to focus on the physical value of the watches, because this remains. Apart from the value of the precious metals contained in the watch, this also includes the expensive workmanship or the well-known manufacturer of the watch. Since this value remains constant, watches are comparatively less susceptible in times of crisis and to hectic economic changes. This crisis safety also applies in the case of collector’s watches, as their availability will never increase. In the case of vintage models, so-called panic sales are rather rare. Among them, there are also certain classics. They receive their classification for their excellent watchmaking craftsmanship and their status as icons.
On the one hand, there is of course the probably best known – the Rolex. For some models in particular, the waiting list is long. When it comes to vintage sports watches from this brand, it can be seen that all of these watches have held up very well in value and some have even increased in value. Thus, these watches are a pretty good long-term investment. The “Audemars Piquet royal oak” and the “Omega Speedmaster Professional” are also well-known representatives.
Finding out which new watches will be the icons of the future, however, requires a lot of research. To do this, you have to familiarise 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 will not make a loss and in the best case, you will increase your investment.
However, even though this type of investment is very exciting, you need a lot of patience. The value of watches does not increase overnight. Sometimes it takes many years. If you are convinced of the success of a particular watch, it often takes a long time before the wait pays off and the investment is worthwhile.
The most recommended thing to do is to buy a watch that you like so much that you can wear it yourself. This way you have not thrown your money out of the window in any respect, as it is an asset anyway. Thus, you own an investment that is also wearable.
This post is also available in: German