Why Splurge on a Luxury Watch? The Investment Case

14 décembre 2023
Why Splurge on a Luxury Watch? The Investment Case

Investing in a luxury watch is a wise decision that combines passion and profitability. Much like collecting vintage cars, appreciating art works, or tasting fine wines, investing in a luxury watch offers a unique experience. However, unlike some pleasure investments, investing in luxury watches promises stable long-term returns.

The Benefits of Investing in Luxury Watches

Watches, a Safe Haven

Luxury watches are internationally recognized as safe-haven assets. Their value grows steadily, and they are appreciated for their aesthetic appeal as well as their potential for financial appreciation. Moreover, unlike other tangible assets, luxury watches are relatively easy to store and maintain, making them even more attractive as an investment.

Watches: A Dynamic Market

Since the early 2000s, there has been significant growth in the sales of new and pre-owned luxury watches worldwide. This growth is driven by the constant increase in purchasing power in emerging countries (China, India, the Middle East, etc.). Therefore, investing in a luxury watch means investing in a globally high-performing market with an easily verifiable price for each brand and model.

The Joy of Purchasing and Social Status

In addition to potential profitability, buying luxury watches is often associated with the pleasure of acquiring a coveted object. Owning a prestigious watch can be perceived as a social indicator of success and refinement. Watch enthusiasts appreciate the design, complex mechanics, and craftsmanship of these unique pieces. Wearing a luxury watch expresses their personal style and appreciation for the art of watchmaking. It can also be a way to stand out in certain social and professional settings.

Rarity and Desirability

The value of a watch on the market depends on factors such as the brand's desirability, the watch's aesthetics, the materials used, and the complexity of the movement. However, the rarity of the model and brand remains the key element. It's important to remember that the most coveted watches are often the hardest to obtain."

How to Invest Wisely in a Luxury Watch and at What Price?

Budget for Investing in a Luxury Watch

The prices of luxury watches vary significantly based on the brand, the model's history, and the watch's features. Some watches, made with precious materials, having exceptional complications, or produced in limited editions, can reach considerable sums. However, it is also possible to start a smart investment with a reasonable budget by choosing modern models from renowned brands such as Rolex, Omega, or Cartier.

For new models, prices start at around 5000 euros for these brands. In the pre-owned market, you can find some interesting models starting from 2000 or 3000 euros. For more information, you can read our article on how to invest in a luxury watch with 5000 euros. If you have a larger budget, consider reading our article on investing in a luxury watch with 10000 euros.

Making an Informed Choice

When investing in luxury watches, it's essential to make informed choices. It's recommended to understand the market before making any acquisition. For novice investors, it is advisable to consult professionals like Kronos 360, who offer fair pricing guarantees, quality after-sales service, and guarantees of authenticity and traceability.

Criteria to Consider When Starting to Invest in Luxury Watches

  • Modern, Vintage, or Collector's Watch? Vintage watches are over 50 years old and may require costly maintenance, while collector's watches are over 20 years old and are often highly sought after. Modern watches are newer and have the advantage of being in better mechanical condition. They are more accessible in the market, and their maintenance is generally less expensive.

  • Popularity of the Watch: Investment watches should be popular among connoisseurs and investors, with attributes like prestigious brand, rarity, quality, and technology.

  • Rarity: Rare watches tend to be traded at higher prices, especially those produced in limited editions or by brands that produce few models. For instance, Patek Philippe produces a limited number of watches per year (around 60,000 according to some sources), contributing to the rarity of its models and thereby increasing their value.

  • Watch History: Watches with a remarkable history, such as those worn by famous personalities, can see their value skyrocket in the market.

  • Certificate of Authenticity: An authentication document and the original condition of the watch are essential to guarantee its value.

  • Condition: Watches are objects that deteriorate over time. Watches in excellent aesthetic condition tend to have a higher value, while scratches can significantly reduce their price. Furthermore, if the model is rare, this is even more interesting: good models that maintain a good state of preservation see their prices increase.

  • Proper Storage: Investing in a quality watch box helps preserve the watch in good condition and increase its value.

Brands to Consider

The choice of watch brands and models to invest in will also depend on your personal preferences. However, some notable brands to consider are Rolex, Patek Philippe, Audemars Piguet, IWC, Omega, Cartier, Breitling, and Jaeger-LeCoultre. In particular, Rolex's sports models from the 1980s and 1990s, such as the Submariner, GMT Master, and Daytona references, are often preferred by investors. But there are many other brands and models that can satisfy both aesthetically and financially.

In Conclusion The market value of a watch depends on the desirability of the brand, the aesthetics of the watch, the materials used, and the complications of the movement. But the main element remains the rarity of the model and the brand. Never lose sight of this principle: the most valued watches are the hardest to obtain.