Watch enthusiasts all over the world can fall in love with a particular model for a myriad of reasons. For example, it could be a technical innovation, an attractive design or an interesting story, or even a copy with which the buyer has a personal relationship. However, the appeal of a watch does not necessarily stop at these criteria. Like any luxury product, some watches also have excellent investment potential. Making money buying and selling watches sounds relatively fun in theory, but much riskier in practice: you could lose a lot of money if you go into it without prior knowledge.
A good knowledge of the market is essential if you want to invest in watches. People who are familiar with brands, models, and their history usually have a good idea of which watches can be good investments in the short and long term. It’s not easy to speculate which models will rise in value, but good knowledge can save you from fatal mistakes. Let’s take a closer look at the new and vintage watch market.
Investing in watches is a relatively easy way to grow your capital. Keep in mind, however, that in most cases the value of the watch will not increase instantly once you leave the store. Currently, we recommend that you opt for a stainless steel Rolex sports watch like the Rolex Daytona or Rolex Submariner , a stainless steel Patek Philippe Nautilus or an Audemars Piguet Royal Oak “Jumbo” Stainless steel. Your investment will most certainly pay off, simply because current demand exceeds supply. However, this is the problem with these models, which are very popular but only a handful of people manage to get hold of.
Also look for the limited editions. You will, however, need a good knowledge of the industry and the demand for certain models in order to know if a limited edition can indeed be resold at a higher price. However, limited edition watches have an obvious problem: their mintage being limited and demand high, it can be difficult if not impossible to get your hands on a copy. If you are one of the lucky few who manage to get such a limited edition, you have the option of selling it right away or keeping it to see if its value evolves. You might see a bigger profit if you wait, but there is no guarantee that you will and most importantly you should resist the temptation to resell the watch immediately for a quick profit.
Invest in vintage watches
The alternative is to invest in used and vintage watches, which is both much more entertaining and much more difficult. The same brands are in great demand in the vintage market. As the price of certain used or vintage Rolex, Audemars Piguet Royal Oak and Patek Philippe Nautilus models exceeds those of the most recent models, this investment may end up being rather expensive. All you have to do is hope that the demand for this model will increase and that it will increase in value!
Icons in the industry are other vintage watches that have recently seen their value increase. The Omega Speedmaster Olympic Professional is a very good example of this: for more than 50 years, many Speedmaster Professional models have been launched and have added to the heritage of the Speedmaster. The growing interest in different models has led to significant price increases across the range. To be able to realize added value, however, you will need extensive knowledge of the Speedmaster universe, including the design of the various models and the stories behind each one. The design aspect can be tricky: since many Speedmasters are vintage watches, they do not always come with the original parts – which can significantly reduce the value of the item. You need to become an expert on the subject and know all the specs of the model in order to know if this investment will pay off.
Do not limit yourself to the most obvious and in demand models: there are tons of other timepieces that will rise in value, for example limited editions, collaborations with an artist or sportsman or just unique watches in their kind. You will still need to polish your knowledge and have a significant budget. With many people looking to invest in precisely this type of watch, the competition can be stiff. These watches are usually auctioned off, which can be a good option for enthusiasts willing to invest a fair amount of money.
The last – and probably the funniest – way to invest in watches is to try to guess which watches could become classics. To be successful in this type of investing, you not only need to have a good knowledge of watches, but also be aware of historical trends. You will have to be very diligent, but it is the most fun and the least financially restrictive way. Your chances of losing money are obviously much higher, but the amount involved is probably much lower. After all, who knows? In the best case scenario, you could very well acquire a new icon that will rise in price over the years – and in the worst case, you will still have an interesting collection of watches that traces your own history.
