How To Get Started With Investing In Watches?

For some luxury watch collectors, buying a watch can be because of interest, while for others, it might be because of status or cultural value. Nevertheless, one thing is sure: they 'watch' it as an investment. 

If you're a beginner, you'll always have questions about how to start, which watch is the best, and what benefits you will get in return.

We hear you! 

Keep scrolling through this article, as it will guide you on exactly how to start your journey and invest in watches. 

Are Luxury Watches A Good Investment? 

The short answer is YES. Luxury watches are a good investment. Look at the proven statistics in this section and know why you must invest in them.

1. Depends On The Model And Brand Of The Watch 

When we say luxury watches are a good investment, we mean you should choose the right brand and the suitable model. 

For instance, Patek Philippe is one of the most profitable watches to start investing in. The Patek Philippe 57111A’s ROI increased by 788% from 2017 to 2022 and is very likely to still grow in the future. Thus, it is an investment worth investing in!

However, some Hublot and Piaget watches do not see a high ROI over time. But this has nothing to do with the quality of their watches; they are just not the best watches on the market for investment. You can find much better options to choose from.  

2. Fast-Growing Pre-Owned Watch Market 

According to Statista estimates, the watch market has been increasing since 2014 and shows a steep increase, reaching over 4.15 billion U.S. dollars by 2028.

The pre-owned watch market is predicted to cross $29 to $32 billion in sales by 2025. 

According to Vision Research Reports, the global pre-owned luxury watch market size was estimated 2023 to be around USD 24.41 billion. It is predicted that it will cross USD 59.23 billion by 2033. 

3. Helps You Diversify Your Investment Portfolio 

Watches are tangible assets with a high liquidity ratio; investing in them can help you spread your investment across different classes. Unlike other businesses, watches are exempt from the capital gains tax, which makes them a tax-free investment in a few countries.

For all these reasons, investing in a luxury watch can be worth your time and money. Though it’s essential to pick the right one — for that, let's jump right into the next section 

How Do I Know If A Watch Is A Good Investment? 

Some people buy watches because they are passionate about craftsmanship, but luxury watches are a gold mine if you just know how to evaluate which one to buy.  

So, here are 6 factors to consider when evaluating a luxury watch for investment 

1. Popularity Of The Brand 

Is it really about the brand's popularity over quality and craftsmanship? Well, the answer is both. The ROI you will get from a luxury watch over the year is directly proportional to the demand for the watch. 

Now, there are many factors that affect the demand for the watch; brand name is one of them. Let’s dive deep into 3 brands that are most renowned in the watch industry.

Rolex

Founded in 1905, the Swiss watch manufacturer is known for its wrist candies like the Rolex Submariner, GMT Master, and Rolex Daytona, which are predicted to appreciate with time. 

Patek Philippe

Buying and selling costs of Patek Philippe are higher than those of Rolex. In the list of The 10 most expensive watches sold at an auction in 21st century (So far), 8 of 10 watches are from Patek Philippe, and the rest are from Rolex. 

Audemars Piguet

Founded in 1875, AP has been owned by the same family since then. Unlike Rolex, Omega, or Breitling, AP’s watches are carefully made in limited quantities and, therefore, increases its rarity. Clearly, their motto is quality over quantity, which makes them great investments.  

2. Price Movements

Understanding the market trends of the watch industry regarding how price increases and decreases is crucial. ​​To understand which watches are likely to appreciate with time, you must understand the thumb rule of demand and supply. 

The fewer pieces there are of a particular watch, the higher its demand and the higher the price it will get. For example, Patek Phillipe has made less than 1 million watches since 1839, but that doesn’t mean they are not profitable. In fact, it is the top watch brand, as it plays the scarcity model. On the other hand, Rolex makes approximately 1 million watches annually.  

Hence, we suggest you look for a track record of at least six months before buying a particular watch. Their past record will help you analyze and predict how it will perform in the future.   

3. Watch Craftsmanship

Luxury watches are not just profit-making machines but a sight to behold. The valuable watches take months to make, and they have very strict manufacturing rules inherited from the owner’s ancestors. 

For instance, Patek Philippe’s craftsmen take 9 months to make their most basic model watch. Imagine the time they would devote to their top-ranking watches. 

Another watch brand, Jaeger LeCoultre, has its entire team working on a single watch, from enameling, engraving, and setting gems to preparing dials. 

When you think about buying a watch, look for how it’s made and what’s the story behind it. After knowing the behind-the-scenes story, you will value it more. 

4. Design of a luxury watch

Does design even matter? The short answer is yes, but not how you would think it would matter. 

The watch you invest in doesn’t have to be the most pretty; instead, we suggest you go for a classic watch, as it will always be in demand. Daytona and Submariner models have stood the test of time if you are eyeing a Rolex. 

For Patek Philippe, Nautilus and Aquanaut are the best-sought models, with Aquanaut being the more affordable. 

On the other hand, the easiest way to create a distinctive collection is to buy watches that don't look like most watches. The Cloche de Cartier’s shape is forward-looking, even though it was designed in the 1920s. 

Almost all Cartier's watches are successful experiments with shapes such as bathtubs, trapezoids, and even tanks. 

 

5. Collaboration With Celebrity 

If a watch’s brand has a celebrity as its brand ambassador, it boosts its demand, making it easier to sell and fetch higher profit. 

TAG Heuer ads with Brad Pitt in them definitely lured collectors. Also, as Princess Diana’s wrists wore dainty Cartier, many women couldn't stop staring at them. 

 

6. Story Behind The Watch

Some watches have very interesting stories, which add value to them and make them a part of history - remembered by everyone.   

For instance, in 1926, Rolex manufactured the first-ever watch with a water-resistance case, which is very smartly named ‘Oyster.’ To test its water resistance capacity, Hans Wilsdorf asked Mercedes Glietze to do the honors and wear it when she was crossing the English Channel. 

Another superhero watch, Omega Speedmaster Professional, saved the lives of Apollo 13 astronauts. They used it to time their return to the Earth from the moon— a second here and there, and they would have been left in space forever. 

Compelling stories like these make watches to be even more profitable timepieces. 

How to get started with investing in watches?

1. Research And Make A List Of Luxury Brands And Models

Start by doing your homework on what luxury brands and models are most preferred in the market. You can find luxury watch brands in different industries, such as fashion, automotive, and horology. 

For extra guidance, consult watch consultants, online resources, and boutiques. Check the style, size, material, features, and especially the brand. This step aims to select a watch you prefer wearing and suit you.  

2. Find Trustworthy Resellers 

With so many replica brand sellers in the market, ensure your seller is authorized and gives you an authentic watch. Many resellers directly buy from the brand, so choosing them would be a great option. 

You can also look for auction houses or platforms that sell these watches. Also, you can check online groups for people who are willing to sell their watches. Make sure to get the authenticity certificate to prove its genuineness. 

3. Monitor The Market For The Right Watches

Once you've set your budget, keep in touch with authorised dealers and other luxury watch brands about their collections and what's going on in the industry. They will keep you updated with related watch pricing. 

Also, follow up with the industry trends and make sure to visit and watch exhibitions. You'll get an excellent steal deal from these places. 

4. Make A Purchase Online Or In-Store

Consider the investment potential when purchasing the watch online or in-store. While most watches lose value over time, certain models from renowned brands can become "investable assets." 

The prices of watches rarely remain the same as they fluctuate. Therefore, researching market trends and specific brands/models' performance can help you make better decisions whether you're buying online or in-store. 

5. Monitor The Price For Development

Make sure your budget meets your watch goals. Check entry-level and mid-range options and how much they usually sell for. Entry-level Swiss watches for investment may range from $1,000 to $3,000, while mid-range options can be $5,000 to $10,000. 

As long as you're paying for the brand, make sure to get the quality as well. Calculate the insurance, repair, and other costs that you want with it before investing. 

6. Sell Your Watch At The Right Time 

Keep an eye on the industry rate and sell when you can make more money than you invested in the watch. The fluctuation in money depends on market demand, trends, and the market condition at that time. 

By selecting the right time, you can achieve a higher price and maximize your return on investment.

Top Brands Of Luxury Watches With High Retail Value

If you’re a beginner, we suggest you stick to brand names with high retail value all these years. Here, we have listed some of the top runners in the global market of watches:

1. Rolex

2. Omega

3. Jaeger LeCoultre

4. Cartier

5. Richard Mille

6. Patek Philippe

7. Audemars Piguet

8. Tudor

9. Seiko 

 

5 Must-Have Luxury Watches In Your Collections

After enlightening you on choosing a suitable investment watch, we propose our top 5 picks that have stood the test of time. From the most reputed names in the market to budget-friendly options, we have something for everyone. 

1.  Rolex Daytona

If you’re looking for a Chronograph, look no further than the Rolex Daytona. Either the precious metal models, platinum or gold, or the stainless steel models. It gets its name from Daytona International Speedway, where racing drivers enjoyed its beauty and functionality. 

2. Patek Philippe Nautilus

Known for their minimalist design, Patek Philippe’s Nautilus watches are among the most desired watches in the world. Classes never go out of style, and that’s why these watches always appreciate in value.