Is It Profitable To Invest In Luxury Watches?
It is very possible that some of our readers like watches. It is even possible that some of them have made an effort at some point to buy or give a special watch, either for the sheer pleasure of carrying one of these small works of art or as a commemoration of a special occasion (wedding, birth of children , etc.).
However, you may never have considered that it is also possible to invest in luxury watches . Next we will see if investing in Beverly hills luxury watches is – or not – an investment adapted for all types of investors. We will also see how to invest in luxury watches for people who want to invest in this type of alternative investment and have the necessary knowledge to do so. Finally we will propose an alternative for people who want to invest in Beverly hills luxury watches in a different way.
Invest in luxury watches: an investment adapted for all types of investors?
In general, when we talk about “investing in luxury watches online“, reference is made to the physical purchase of the watch and its subsequent resale with the passage of time in the hope of obtaining an (important) surplus value. In that case, the answer is quite clear: no, investing in luxury watches is not an investment adapted for all types of investors . The reason is that although a good watch generally maintains its value over time much better than other assets (such as cars), the cases in which a model increases its value over time are relatively scarce .
However, to return to the example of cars, the chances of that happening are higher than those of buying a car waiting for it to become a classic model (which by the way, can be an excellent investment for the lucky owners who they have maintained them over time). So, you have to have a good knowledge of the watchmaking sector to be able to determine if a particular watch is going to be part of those few watches / models that are going to revalue with time.
Therefore, we consider that to be able to invest in luxury watches in a profitable way (and not simply to do it for its sentimental value), it is necessary to have a solid knowledge of the watch industry . Otherwise it is highly probable that the watch we buy lasts a long time but does not appreciate and, therefore, is not a profitable investment in the long term.
Key elements to invest in luxury watches
As we have already said, from our point of view only the true connoisseurs of the world of watchmaking should invest in luxury watches if it is to obtain a surplus value over time and not simply have a good watch with a high sentimental value. That said, we explain below the main elements that could make the purchase of a watch a good profitable investment.
1. Luxury watches brands
There are brands that maintain their value better than others. Generally the brands most appreciated by collectors are those with a long history and that have not undergone major changes since its inception. Examples are obvious Patek Philippe or Rolex but there are many others that are extremely appreciated by collectors and less known to the general public. Another possibility is new brands that are making a hole quickly in this market based on creating excellent models (particularly with movements made by the brands themselves) that possibly become classics in a short period of time. An example could be the German Nomos, another could be Bell & Ross, although the truth is that on this second opinions are very divided and their prices in the secondary market do not seem to support it.
An interesting element here is the trend of catalog prices of the brand, which can cause that although we have not been successful (from the point of view of the investment) with the model, the own increase of the new models “drag” the price of second hand of a model even if it is not particularly scarce or sought after. Thus, even if we sell it for less than the new model costs, we can make a small profit if the watch is well maintained and the catalog prices have gone up by an annual 5-7% (another example of the magic of compound interests ).
Certain models have had a terrible success, which has led them to perpetuate themselves in time (the Rolex Submariner or Explorer, the Patek Philippe Nautilus (or some Calatrava), certain versions of the Omega Speedmaster, etc.) while other contemporaries have fallen in forgetfulness
In general, old editions of these iconic models that have been maintained over time are extremely appreciated by collectors . Although there are certain elements that can make a model become an icon (James Bond and the Rolex Submariner, the Omega Speedmaster that walked the Moon, etc.), the truth is that what usually marks the continuity of a model is its appreciation by the public and by collectors , which generally depends on its aesthetics and characteristics. Examples of models that have been perpetuated are those already mentioned (and others of their brothers of the same brands), steel Rolex, Patek Philippe Calatrava or Nautilus, IWC Portuguese, Zenit El Primero, Breitling Navitimer …
The truth is that it is not easy to get it right, partly because brands do not usually disclose their sales figures by models (which would be an excellent way to know which ones have a higher demand). Perhaps the best thing in this sense is to ask oneself first if the watch is attractive to us and contrast it with known and third parties (not necessarily understood in the world of watches, although these can give excellent information from a technical point of view). Then we should check if it meets the other requirements.