Investing in luxury watches can be a great way to ensure your money is safe and secure, but it can also be intimidating for those just getting started. This article will take you through the basics of investing in luxury watches and discuss the essential considerations you should keep in mind when making your purchase. Read on to find out more!
What to consider when buying an investment watch?
When it comes to investing in a watch, there are a few key factors to consider to ensure you make a wise investment.
- First, doing your research and knowing what you are looking for in a watch is essential. There are many different brands, styles, and types of watches on the market, so it is important to narrow down your options before making a purchase.
- Next, consider the price of the watch. While you may be tempted to buy the most expensive watch you can find, it is essential to remember that an investment watch should be something you can wear and enjoy daily. Therefore, finding a balance between quality and price when selecting an investment watch is essential.
- Keep in mind that an investment watch will not necessarily appreciate in value over time. While some watches may increase in value over time, this is only sometimes the case. Therefore, choosing an investment watch, you will enjoy wearing and using daily is vital.
- Please pay attention to the features and functions of the watch itself. A well-made investment watch should have all the bells and whistles you need without being too complicated or delicate.
- The condition of the watch: A watch in mint condition will be worth more than a heavily worn one. If you’re buying a vintage watch, have it checked out by a professional before making your purchase.
By considering these key factors, you can be sure to find an investment watch that meets your needs and budget.
New vs. vintage: which one should you choose?
Which is a better investment, a new watch or a used one? This is a tricky question because it depends significantly on the watch. Like when you buy a new car, the value of many watches drops as soon as you walk out of the store. It could take years or even decades to go from “used” to “vintage.” Because of this, it’s best to buy many modern watches that have already been used and let the loss of value fall on someone else. If you buy the watch at this lower price, it will take you less time to get your money back.
What about vintage watches, which look like used watches on paper? There isn’t always a clear line between “used” and “vintage,” but generally, a vintage watch is more than 25 years old. Since they’re no longer made, you can only buy one already used.
Vintage watches are usually rarer and more unique than new or used ones, making them fantastic investments. When a watch is taken off the market, it becomes harder to find as watches break, get lost, or get old. Over time, there are fewer good examples of that model, and if collectors want that model, its price can go up by a lot.
But the vintage market and how certain popular pieces change all the time. The value and popularity of watches like Rolex Bubble Back and Paul Newman Daytonas steadily rise, peak, and then fall. Using the Paul Newman Daytona reference 6239 as an example, the value reached its highest point in May 2020, when it hit $100,000, and then fell back to the $60,000 range.
But even though prices change, Rolex Bubble Back and Paul Newman Daytons still sell for much more than their original prices, under $300.
Modern watches
Even though used and vintage watches are great investments, they aren’t the only ones out there. Modern watches like the Patek Philippe Nautilus, the Audemars Piguet Royal Oak, and almost any modern Rolex are so hard to find at retail that as soon as you buy them new, their value goes up.
The number of people who want these watches is much higher than those who have them.
On the secondary market, some of these watches can be worth two or three times what they cost in stores. Depending on what you want and how much money you have, these investments may or may not be risky.
Brands with the highest resale value
In terms of capital, branding might be crucial. A select few well-known companies have consistently outpaced their competitors in terms of value retention and expansion over time.
If you need an example, think of Rolex. Most Rolex watches have witnessed significant rises in resale value over the years, but it is possible to find one that has declined in value over time if it is in mint condition.
Patek Philippe, Audemars Piguet, and specific Omega models and lines have always held their resale value well. Most watches are made by independent companies with good standards, such as F.P. Journe and Philippe Dufour, have increased in value over time.
Conclusion
The golden rule of investing is to buy cheap and sell high, but it isn’t easy to know when those times exist.
However, if you keep up with market data and trends, you’ll have a better idea of when to sell. Check how the timepiece’s value fluctuates in relation to your personal reference. If the price of your watch is going up, this is a perfect moment to sell. If you wait for the market to reach its highest point before selling, you risk missing out on potential gains and being left holding the bag.
Selling the watch as soon as its value rises over your initial investment is the only way to guarantee a profit.
If you want to know more about the watch industry and read in-depth posts and guides about watch investment, you can check TheEliteArt.com, where this guide was written based on their knowledge.
