Property, collectible cars, cryptocurrency, commodities… there are many investment opportunities that, if you get them right, can provide a return on your investments. Let’s face it, with interest rates being so low, even longer term saving options aren’t going to give you the dividends you could get from alternatives. For those that are looking to turn a profit there are a number of ways that you can indulge your passions, while your purchases increase in value. Investing in watches is one such way but, is this the right time to start your watch collection and what should you expect? We offer some tips on what to look out for and what to avoid.
The Art of Investing in Watches
When it comes to investing in watches, you can’t go wrong with a classic Rolex or the right Patek Phillipe model. In fact, some newly purchased Rolex models will almost double in value on the pre-owned market immediately after being purchased. Before you get excited, we aren’t suggesting that you should go out and buy a brand new Rolex and expect it to earn you money instantly.
Instead, you might look to invest in a classic pre-owned model in the right condition. Every Rolex will make you money if bought well and kept for 12-2 months
The Short Term Investor vs The Bigger Picture
There are two types of watch investors. There are the “flippers” who will buy the right watch at the right time with a view to sell it on and make a quick profit and then there are the collectors, the enthusiasts that are passionate about luxury watches and are looking to add to their collection with a longer term view. This bigger picture, playing the longer game, is a wise, and often fruitful way, for investing in watches of the luxury kind.
Demand and Popularity is Key
Many people enjoy success making money buying and selling vintage cars, vintage furniture and luxury watches. They use high profile auctions to attract the right buyers and interests but there is often no rational explanation for the amount paid for a watch or whether it sells or not. It’s usually linked to a hype surrounding a specific model. This could be who is wearing it, where it was featured and the demand for such a model.
Knowing the market, keeping an ear to the ground and learning what is hot and not, is a skill that will reward you with greater returns however, this can be time consuming and take time. Discussing your requirements with an expert that understands the market will not only save you time, but also help you to reap greater rewards.
Brands that Retain or Increase Their Value
Not every watch or brand will increase in value over time. There are those they will outperform the rest though – primarily the Rolex and Patek Phillipe. Other luxury watch brands such as Omega and classic models worn by well-known characters such as James Bond, also become a sought after piece, increasing its value.
Where Can You Buy Vintage Watches?
That’s easy – you can buy them from us. We are watch connoisseurs and know our luxury watches. We are always on the lookout for those special pieces, successfully sourcing them for our clients using our watch concierge service. If we don’t have it in stock, we will endeavour to source it for you. You just tell us what you are looking for and we will do the rest
Looking After Your Investment
Even sat in a box in a protected environment, luxury watches still need regular care and attention. For insurance purposes, it is vital that you get your watch serviced at recommended intervals in line with the manufacturers guides. Some Rolexes now only need service once every 10 years whereas others will require servicing more often. A service is important to ensure that all parts are in working order. We also offer a repair service and as part of our servicing, we can address any issues – a scratch, wear and tear, parts not working… We have certified watch technicians that take care of all of this for you.
Consider the Risks
Be wise with your investment and don’t commit to anything without first carrying out your research.
- Watch out for fraudulent or stolen watches
- Be careful of watches that are cobbled together from other parts (Frankenwatches)
- Buy from a reputable business
- Ensure your purchase comes with the original box and docs
- Find out as much as you can about the history of the watch
- Get it valued and insured
Taking carefully calculated risks is much safer than buying a watch of a mate or the guy down the pub. If it seems too good to be true, it usually is so take your time and ask for expert advice before parting with your money.
The Most Expensive Watches Sold at Auction
We will leave you with this thought. At the Only Watch auction, at Christie’s in 2019 a Patek Philippe Grandmaster Chime 6300A-010 sold for a record $31.19m.
Other major auction sales include a 1943 Patek Philippe Stainless Steel 1518 which sold for $11.14m in 2016 and Paul Newman’s “Exotic” Rolex Daytona which sold in 2017 for $17.75m.
The most expensive watch in the world currently is the Graff Diamonds “Hallucination”. A price tag of $55 million!
Want to find out more about our watch services? Click here or get in touch with us here at The Goldmarket – 01934 628361.