Are you considering investing in a new timepiece? Even if you simply want to elevate your wardrobe, it’s worth knowing many watches retain value long after purchase, with some even rising dramatically over time.
It’s only logical then to research the future value potential if you’re investing a large sum of money, especially as UK interest in watches grows.
That said, no one can reliably predict the future, so it’s important that you actually like and value the watch you’re investing in. Still, there are several factors that can help you judge the investment viability of a luxury timepiece, as some tend to pay off better than others.
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First up is a brand. As with cars, clothes, and other luxury items, not all watch brands command the same levels of desire and demand.
If the future value is a priority for you, this makes it worthwhile sourcing pieces from renowned high-end manufacturers such as Richard Mille, Audemars Piquet, and Patek Philippe – maker of the most expensive watch ever sold at auction.
Even within each brand, some models garner far more attention than others. Scarcity is a key factor in determining future value just like in almost every other market. So if you choose a model of which few exist, or few in top condition at least, then you could be on the money.
Common examples are limited edition models from smaller independent brands, as well as vintage models that initially struggled to sell.
3. New vs Used
The next debate is whether to buy a new or used model. Many new watches depreciate quickly and take longer to rebuild value, making used models a cheaper option whether you’re looking to resell or not. But some new watches are so hard to attain that their value can shoot up right away.
Vintage watches are slightly different in that they’re no longer in production, so buying new isn’t an option. They’re usually rarer, as a result, potentially making one a great investment.
Unless you’re a hardcore collector or only in it for the money, you’ll of course want to wear your new purchase occasionally. But doing so often and without caution could reduce the value of your investment – especially if you don’t keep up with maintenance.
Aim to avoid scratches and other damage, of course, and replace parts such as button batteries as needed if they’re part of your model.
Authenticity is important when it comes to luxury watches, so it’s crucial that you collect the right paperwork to verify that your chosen model isn’t counterfeit. This will make your life a lot easier if you do decide to resell too.
Choosing a reputable dealer should help you avoid getting duped.
6. Where to Buy Luxury Watches
It depends on the specific model. For example, the Daytona is made by Rolex and can be found in brick-and-mortar Rolex retailers as well as some high-end jewelers. But if you’re looking for a Patek Philippe Nautilus, you’ll have better luck finding it at an auction house like Sotheby’s or Christie’s.
You need to find a reputable dealer if want to buy a used model. You want someone who has a solid reputation in the community and who is very upfront about the state of the watch.
7. Pay Attention to the Risks
Investing in a luxury watch cannot guarantee you a profit. Nobody is able to predict what the future will be, the trend could go up or down. The trend for investing in luxury watches this year may change next year.
Luxury watches are an excellent way to add some bling to your life while also potentially increasing your net worth down the road. But as with any investment, there are certain risks involved.
By keeping the factors above in mind, you can make a more informed decision about which luxury watch is right for you – and help ensure that your timepiece is a wise investment.