Pouring tens of thousands of dollars on an accessory may not seem like the right thing to do. However, we bring to you a detailed guide on investing in luxury watches that will help you understand why doing so might very well be the right thing to do.
A watch is probably not the first thing that comes to your mind when you think of investments. Even if they do, you might be thinking of them as a quick flip investment and not as a long-term one. However, luxury watches are incredibly valuable and offer an excellent return on investment in the long run.
Here are some key features to look out for when buying an investment watch:
- The Watch Brand
- Buying a New Watch V.S. a Used One
- The Numbers
- Where to Buy the Watch from
The Brand – Go for Trusted Renowned Watch Brands
When it comes to investment watches, the name sells. Not only does the brand name determine the watch quality but also its demand and resale value in the future. In fact, some of the highest selling watches at auctions come from some of the top renowned luxury watch producers such as Patek Philippe and Rolex.
We suggest you look out for the latest releases from these high-end brands. You might also want to look out for some of the older pieces that become available for sale at auctions. Some of the pieces by these companies are incredibly rare and worth an investment.
Buying a New Watch VS Used Ones
Many investors face the new vs used dilemma when purchasing an investment watch and rightfully so too. If you are new to the watch industry, you might be considering investing in a brand-new watch. However, you shouldn’t let the title ‘used’ or ‘second-hand’ watch influence your investment decisions.
In fact, some of the used pieces are incredibly valuable, especially if they have a history or a story to tell. For example, if a watch once belonged to a celebrity, it is bound to fetch a higher price such as the Paul Newman Rolex.
We aren’t suggesting that you only go for such one-of-a-kind watches. In fact, a watch of the same make and model as that of Paul Newman’s Rolex is also a worthy investment watch because Rolex no longer produces that model.
The Numbers
There are a couple of numerical figures you need to look at before making an investment.
- Total number of pieces in production
- Current market value and demand
Total Number of Pieces in Production
Limited edition watches are quite popular especially among watch collectors and elites with the bucks to spare. They are not as common and are bound to appraise in value over time, especially once all the pieces are sold out from shops. The Tiffany and Patek Philippe collaboration is a latest example of a limited edition collection. The first watch sold for almost 120 times its original retail price, fetching a staggering USD 6.5 million at an auction. The two companies will only release 170 watches so we imagine the rest of the 169 pieces will sell out very quickly.
Current Market Value and Demand
If you are considering buying a used watch, we suggest you look at its current market value first. Not all vintage watches are high in demand and demand is essential when making an investment. The higher the demand, the higher the price will be. Thus, do not forget to look at actual figures in the market before you buy a watch.
Even if you are buying a new watch, you should look at the total number of pieces the company intends to produce, the kind of buzz the watch is generating in the market and try to find out its expected appraisal rates. Some watches may not be a good long-term investment but may make for an excellent quick-flip purchase.
Where to Buy the Watch From
Lastly, but most importantly in our guide on investing in luxury watches contact only trusted dealers to avoid being scammed, especially if you are making your first investment. There are several dealers on the internet who will try to get you to make a quick purchase.
Often, the actual product is not as shown in the pictures. In fact, you may even find out that the parts inside the watch are not of the model you purchased. Make sure, you do ample market research before you contact a dealer to make a purchase.
A Guide on Investing in Luxury Watches – Recommendations
Not to beat our own drum, but Theodore’s is a trusted luxury watch dealership that has been in the market for over 30 years. We specialise in unique and rare luxury watches and have a wide range of investment-worthy collectable items that will interest investors.
If you are looking for a trusted second-hand watch dealership in London, visit our store in Knightsbridge. Contact us to book an appointment.
