1. Luxury Watches are one of the best assets to financially invest in during uncertain/difficult times.
Like collectable cars, luxury watches often retain their value – and some, depending on the model you buy, will even increase in value. Even, it seems, in difficult financial times:
“We live in uncertain economic times, but watch prices at Baselworld show no signs of making a cut-price concession to the unstable yen or rouble, or even the competition from the Apple Watch. Indeed, the opposite seems to be true: the higher the asking price, the greater the appeal, for cheapness may suggest a reduction in quality.”
So unlike blowing your money on a wardrobe that will date fast (and lose its value just as quickly), buying a luxury watch can be a wise investment. Just make sure you keep your watch in excellent condition, and keep hold of its box and any paperwork.
Many Swiss watch brands apply price increases almost annually. Rolex, for example, increased all their prices from a range 2%-13%.
The more important factor is the activity happening in the secondary market. These incremental percentage increases are nothing in comparison to increases occurring in the secondary market. For example, the price for a Rolex Green Daytona Beach 116509 in January 2021 was approx. £25k. Fast-forward to today (7th February 2022), prices are hitting £70-80k. That’s a 200% ROI. There’s many models out there returning much higher ROIs.
Between Feb. 12 and March 23 2020, the Dow lost 37% of its value. By the the middle of March, panic was rising. As the US went into lockdown mode, over 20 million jobs were lost, businesses closed and the virus continued its spread. Investors watched as their retirement savings lost 30% in two weeks, and speculation about how bad it could get created even more fear among investors.
By contrast, the secondary watch market did not see a decline in value. In fact, the value of many popular watches increased due to the stability and security the watches offered as a financial asset.
2. Luxury watches are extremely liquid assets
Being in such a large and prosperous industry, there are many ways and routes to selling your luxury watch quickly and easily. As of February 2022, dealers are even offering close to market value for some models with the expectation that they will increase in the short-term. If you bought a Steel Rolex Submariner Date in 2015 for RRP, you’d be able to sell it today, very quickly, for at least £10k.
If you would prefer to sell privately and safely to an authorised dealer/secondary market dealer, you won’t get as much as you might by selling privately, but the risks of selling privately are removed and you can usually turn your watch into cash within 24 hours. If you would like to sell your watch at an extremely competitive trade price, navigate to our sell page to get in touch.
3. Watches are easily stored, insured and transported
In comparison to other (common) financial tangible investments (Art, Cars, Properties), watches are small, easy and inexpensive to store. Furthermore, insurance is easily set up and affordable, and can be applied when shipping them anywhere in the world which, by the way, is very easily done.
The image above portrays the amount of wealth that can be easily stored and transported - it’s an investment portfolio of £300k+ in a tray!
4. Luxury Watches have low maintenance costs
Imagine this scenario: You’ve just invested in a property. Generally speaking, you should expect to spend between 1%-4% annually on maintenance costs. And this is just run-of-the-mill upkeep and general wear and tear (not including major home repairs). On the flip side, when investing carefully in luxury watches, maintenance costs are typically a full service every 7-10 years, costing on average £600-800. Ideally, with little signs of wear and tear, only internal maintenance of the movement is required, preserving the original external aesthetic.
5. Luxury Watches as an asset can leave a legacy
Wristwatches don’t just help us record and keep track of time. They also contain the history, memories, stories and legacy of those who wear them. To paraphrase one of Patek Philippe’s iconic mantra: 'You never actually own a luxury watch. You merely look after it for the next generation.' That’s because high-quality watches are built to last and are designed to be passed down from generation to generation. They are symbols of the people who own them. They also tell their story of them once they're gone.
