When people think about investments, their minds turn to stocks, bonds, and real estate. Not a lot of people look at watches as keenly as people who understand the value that watches have within them.
You may have seen an old luxury watch being auctioned for prices worth someone’s annual wages and wondered, “How in the world?”
Well, there is something to it, and in this article, we’re going to answer the question in your mind; are watches a good investment?
Watches are known for their functionality- to tell the time. Anything extra is luxury and class, and there’s nothing wrong with that. If anything, the type of watch you have on your hand tells a lot about you.
Are you a fashionable guy keen to impress everyone in every room he walks in?
Or are you Average Joe- as long as the thing on your wrist tells the time accurately, you’re okay? Therefore, when it comes to looking at watches as investments, you first have to assess how you see watches in the first place.
The trend of investing in watches is rather recent, with movies since time immemorial showing the protagonist in a prestigious watch like the Rolex on James Bond’s wrist. Before the marketing and the technological advancements that Rolex undertook that made their watch super pricey, one can say Rolex was just like any other brand.
That means that finding the right watch to invest largely depends on how large the brand is. That’s not the only thing to consider though.
If you’re a watch enthusiast, you’re likely familiar with some fantastic yet underrated brands in the market.
The question then is, which one should you go for? The reason why people invest in watches is that they want a high resale value. That is possible with limited watches; those no longer in production.
When you invest in such a watch, then you’re likely to rip a handsome profit. That is the angle that watch-investors generally come from choosing to invest in watches.
When looking for watches to invest in, two brands remain ahead of the pack: Rolex and Omega. However, of the two, Rolex still takes the top most valuable investment. There are various reasons for the fact that Rolex stands where it does. For one, you have to look at how the watch is made.
They are handmade and are made of 904L stainless steel- they are the only ones in the market who do that. There is also the aspect that it takes them a whole year to release a new collection, with the pieces coming out is limited.
There is also the fact that Rolex has held its end of the bargain when it comes to making timeless pieces. You can wear them for a lifetime and pass them on, they acting as an heirloom.
You, therefore, have to look for a watch from a known manufacturer that not only produced limited pieces but those that are still working decades later. When you’re looking at Omega or any other brand like Patek Philipp, that’s what you want.
How much is it worth investing in?
Typically, the watches that have the best resale value are those that range between $4,000 and $9,000 though there are exceptions of those that go triple the amount stated. It largely depends on the brand and how rare the watch itself is. Once you purchase the watch, you want to stay with it for quite a while; decades of you can.
The more vintage piece is, the better. With that regard, you should opt for mechanical watches as opposed to quartz. There are exceptions where quartz having increases the value, but mechanical watches are a safe bet.
It also helps to have a watch similar to an iconic one.
If you have the Rolex Speedmaster Professional or the Moonwatch, the first watch worn by an astronaut walking on the moon, then you’re bound to get an insane amount of cash during the resale.
It is thus advisable that you gravitate toward some iconic watches as well so that you can get a bountiful harvest when the time is right.
That said, we have to mention that just as with some investment, watches are quite risky. That is why it’s not ideal to purchase a super advised watch with the hopes that it will cost a couple of more grand in the years to come.
Just as with stocks and others, you have to put in adequate research. Look into the things that make that particular watch special. Is it the craftsmanship?
What about the materials used? Who is the watch targeted to? These and other questions are crucial before making your first purchase of a watch you want to resell.
Demand and supply
Here is another investment basic that will guide you to the right kind of watch to get. Look for watches that are in high demand; there’s something to it.
With your research, you’re able to know if the hype around the watch is warranted or if it’s a marketing gimmick and thus steer clear from them. Otherwise, look at brands like Patek Philippe and Rolex because they continue to show that they are in demand even after being in the market for generations.
There are other brands, but you want to work with those that are in demand consistently. It means that you’ll always have someone who wants to purchase the piece of jewelry once they are no longer in production.
Keep an eye on companies that are continually ranking high on lists to do with investments on their products or innovation. Even so, when looking at these high-end companies, you want to get models within the brand that is in demand, not just any you like. Get into the details.
What gems are in use? What about precious metals? Is there an innovative piece of technology the company has used that has made headlines in the world of all things watches?
These things will guide you to the right watch where later you’ll meet the demand for it in the market, hopefully through an auction. Another way to make quick cash is to go for limited edition watches.
Everyone will want to get their hands on them, but they won’t have the money at the time to make the purchase. For the most part, these kinds of watches are sold out even before they hit the store. If you do, go right ahead.
Getting limited edition products are hard all around, and people are willing to pay more to get their hands on them. That applies too in the world of watches.
Interest and research go hand in hand
As mentioned, you do need to do your due diligence so that you land on the right watch. Now, imagine if you had no interest in watches, and you’re stuck looking through books and articles about them.
It would not only be dull, but you might end up forming some wrong conclusions. It’s empirical that you do have an interest in watches. That way, spending hours reading about a company and the process they used to make the watch will not be dull.
When you add interest, you’re going to go beyond to know more about watches and what you’re about to purchase as an investment. There’s also the peace you have when making the purchase that you did make the right decision with the information you had at hand.
When you’re able to talk about the specifications of the watch as though you’re going through the weather forecast, then you’re genuinely interested.
Get something you like
At the end of it all, you want to get a watch that you love. That is so that in the event you’re unable to sell off the watch; you remain with something you like. It should also be something that you would be proud to pass on to your young ones or wear it well into your old age.
Getting something you like is essential, and something you can wear as well. You don’t want to be bitter, stuck with a watch that you thought would bring you spare change.
Making the right call
We can safely say that watches are a good investment, but that largely depends on the kind of watch you’re getting. It could be a hit or miss, but with research and patience on your side, you should be able to make back the money you purchase the watch for and some more.
Remember also not to limit yourself to new editions in the market. There is much to be gotten from the pre-owned market. You do need to ensure that they are trusted and safe before you engage with them.
You don’t want to get something that has parts changed, no longer retaining the original value. Here we can say that when the deal is too good, walk away.
Only deal with licensed professionals if you want to get value for your money. That said, remember to invest smartly. Don’t put all your eggs in one basket, especially because investing in watches is primarily long term.