Investing in watches can be rewarding as it allows you to improve your finances while enjoying a luxury watch. In this guide, you will learn how to invest in watches.
Table of contents:
- Why start investing in watches
- How to invest in watches
- Watch investment risks
- Watches that keep their value
Why start investing in watches
The biggest reason to invest in luxury watches is to keep up with inflation. Some watches even outperform inflation thus making you a return on your investment.
Investing in watches is an equivalent of investing in other collectibles as art and wine. And as with any investment, the price is determined by the supply and demand. This means that if the demand for a specific type of watch drops so will the price, and vice versa.
Typically with collectibles, a limited number of items are produced. And when people want to buy the collectible, later on, a lot of these items has been lost or damaged. So the supply of a given watch will typically drop over a given number of years.
So if the popularity of the investment watch you choose to invest in also rise, you should be able to look forward to a good return on investment.
How to invest in watches
Investing in watches comes with a few common pitfalls, which are easy to avoid if you know what to avoid. Read on and learn what type of watches you should be looking for when learning how to invest in watches.
Should you invest in a new or used watch
Buying a new watch comes with the certainty that the watch is authentic and without damages. But as soon as a new watch leaves the store, it often falls in value, as it is now used. This is not always the case, as there are exceptions to the rule.
On the other hand, secondhand watches tend to be a better investment, as they do not fall in value when bought. But by buying a watch secondhand, you can run into the pitfall of buying a fake one. As with nearly all things that have a high cost, the watch market is also flooded with fakes that you need to avoid at all cost.
How to avoid buying a fake watch
The worst thing that can happen when investing in watches is ending up with a fake one. The easiest way to avoid this is by buying a brand new watch from a certified watch dealer.
However, often times watch dealers can also help you determine if a watch is authentic or not. So if you want to buy a vintage watch secondhand, you should always get it checked by a certified watch dealer.
Watch investment risks
Investing in watches is like investing in any other collectibles. Generally speaking, the price of collectibles are determined but what people are willing to pay for it.
When investing in watches, the outcome of investment depends on the brand you invest in. Imagine that Rolex suddenly became an unpopular brand. This would definitely lower the prices.
However, as with any investments that are based on supply and demand, generally speaking, you could expect the price to steadily increase as watches become rarer.
And as with any other investment, you have to have an idea of where the value comes from.
Watches that keep their value
Even though nothing is guaranteed in investing. Some watches that keep their value or have increased in value over decades are big brands like Rolex and Patek Philippe. But just because these brands produce watches that have a tendency to increase in value doesn’t mean that this applies to all of their watches.
Investment watches brands that tend to rise in value include but are not limited to:
Investing in Rolex watches is probably one of the first things that come to mind when thinking about watch investing. And for a good reason. Since being established in 1905 it has grown to become one of the worlds leading watchmakers. Rolex became known for making watches that beat a lot of records over the years by making rock solid watches.
Omega watches are typically a lot cheaper than a lot of other watches. However, some of their watches still have a tendency to rise in value. Omega is probably most known for their Speedmaster and Seamaster watches.
Patek Philippe is the last family-owned Genevan luxury watch manufacturer. Investing in Patek Philippe watches requires a bit more money than investing in some of the other watches. But they will provide a more unique watch than a lot of other watchmakers.
TAG Heuer is a Swiss watchmaker with over 150 years of experience in the watch industry. You should definitely consider some of the watches from this Swiss watchmaker.
Breitling is another Swiss watchmaker in high demand. The watchmaker primarily produces watches with a pilot and aviation-inspired design.
Investing in watches is a great alternative to just keeping cash, as investment watches tend to outperform inflation.
Despite the fact that you get the joy of wearing an exclusive luxury watch from time to time, you probably won’t get astronomically high investment return by investing in watches. At least not without conducting A LOT of research into the ins and outs of the watch industry.
If you want to get higher investment returns, we highly recommend that you look into other investment types.