Investment Potential of Watches
Explore the investment potential of watches. A solid watch nowadays serves both as a functional accessory and a status symbol. Brand reputation is key – watches from respected brands like Rolex and Patek Philippe typically hold their value better than those from less well-known brands. However, the majority of luxury Swiss watch brands are usually good investments. There are collectors, enthusiasts, and people who only buy watches to flip them and make a buck.
Experts agree that watches traditionally hold their value better than most other investments even in an economic slump, and they estimate that the right watch purchased today can appreciate in value as much as 10-30% in ensuing years.
Top Watch Brands to Invest In
- Rolex
- Patek Philippe
- Omega
- Seiko
- Longines
Vintage watches are a prime example of antiques: they are regularly sold in English and Dutch-styled auction houses for high prices. If you want to start investing in watches, be aware that flipping watches could very well become a sustainable source of income on its own.
Factors Influencing Watch Value
Predicting specific watches that will increase in value is challenging. However, brand reputation, limited production, condition, and historical significance influence value appreciation over time.
- Rolex Chronograph Daytona reference 116509 has surged 37% in value.
- Omega’s “Moonwatch” Speedmaster has climbed as enthusiasts seek historic pieces.
- Rolex Submariner retains value extremely well, often selling above original prices in just a few years.
Factors like gold cases and exotic straps also reflect higher value. Rarity, brand recognition, and demand drive luxury watch investments. Elusive, limited editions from top brands are most worthwhile. Identifying the watch age requires the serial number inside the case. It’s important to research particular models, as not all are likely to appreciate.
Maintaining Watch Value
Luxury watch brands best hold value over decades, ranging 5-15% yearly appreciation on collectible models. Proper protection from wear and tear also maintains worth. The brand’s reputation plays a huge role in determining future value. Watches from Patek Philippe, Audemars Piguet, and other premium brands will almost always go up in value.
A budget allocation tip is investing around 1% of income can guide your watch budget. For example, with a $100,000 salary, $1000 can be allocated towards a quality watch.