Luxury watches for most of us represent an indulgence. We buy luxury timepieces for many reasons – quality, craftsmanship, fancy complications, status, sometimes even for something as simple as how good it looks on our wrist. Regardless of its current or future value, we make a significant investment of our money, time, and interest when we buy an expensive watch. But does our purchase represent a smart monetary decision in terms of future resale value? That depends on a few things. Read on to find out what our watch gurus felt are some of the hallmarks of a good investment watch.
Look for Limited-Edition, Collector’s Watches
An expensive watch can be an investment, but it depends very much on the company, model, and the materials it’s made of. Just like luxury purses or cars, not all items are created equal. Most watches will decrease in value as the years go by, so it’s not a great place to sink your money. You buy it, it gets old, tarnishes, or stops working.
Have you ever seen a worse investment? But select models – usually the ones that are limited edition, in very limited supply, or rare vintage ones – can increase in value, as they are coveted and difficult to find. That makes them collector’s items, and very valuable.
Investment Watches Should Have Unique Attributes
Watches are much like any collector item. They can be investments, but investors need to look for certain unique attributes. For instance, some watches are part of a collection where the watchmakers make them a particular way or sign them. These can be great investments. Others made in a particular year can become good investments, especially if they end up being the last ones made for a certain line. Normal watches will not be much of an investment.
Gert Mikkal
Gert Mikkal is an M.D and works as a radiologist. He’s also the founder of DadProgress.com, a website for new dads.
A Speculative Investment
If you’re wondering if an expensive watch is considered an investment, try to judge the likelihood of getting more for it than the price at the moment. I feel luxury watches are a highly speculative investment because you’d have to get lucky with the pick.
Almost all luxury brands regularly introduce new breathtaking models, so the competition for attention is brutal. And people with serious money usually aren’t keen on buying used stuff unless it’s something unique.
Another thing to consider is that luxury watches were relatively cheap in the 1970s and 1980s because of the so-called quartz crisis. Many sellers are earning very well only because the initial prices were low. Nobody knows if this will continue now when some models are sold for around $100,000, and interest is declining because of the smartwatches.
You could get around $13,000 for a 1960s Rolex Submariner because this legendary watch was featured in many Bond movies and became a classic. Not bad, considering that the initial price for a stainless steel model was around $1,200 (adjusted to inflation). And then there are countless models sold for considerably less than the initial price tag.
While I consider luxury watches a speculative investment, I do enjoy expensive models just for the sake of art and craftsmanship.
Become a Collector Before Investing
Investing in luxury watches can often be worthwhile because the luxury watch market has been quite robust over the years, which means that as long as you have performed extensive research, then you can move forward with relative confidence. For instance, timepieces like the Rolex Submariner or Omega Seamaster 300 continue to rise in value, purely because they have been expertly made, are incredibly well-designed, and are offered by a legendary brand.
However, not every watch model will hold or increase its value over time. And as such, it can be easy to make an expensive mistake, if you aren’t careful. It is for this reason that one should first start as a collector, and then take your time to develop your knowledge in this industry, without being overly concerned with investment value. Once you become an expert, you will then know exactly where to put your money to avoid any avoidable losses and make significant gains in the process.
Ann Martin
Ann Martin, Director of Operations of CreditDonkey.
Can Be Investment Based on Its Rarity And History
It’s certainly unconventional, but expensive watches can, in some cases, be worthwhile investments. They have a lot in common with other collectible items in the sense that the price is determined not just by the quality of the piece but also its rarity and history. This can make it hard to really score big, since you will rarely get the chance to buy one at a good price if it’s known to be valuable to collectors.
You’re much more likely to make good money in this market by buying a new watch and taking care of it over the years, or inheriting one. While it’s not the only brand that holds its value well, Rolex really is the most important brand name to know about.
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