Over the years, luxury watches have proven to be a very smart and profitable investment.
You need a significant amount of money to collect and invest in luxury watches, but having millions of pesos in the bank is not necessary to start investing.
Before parting with your hard-earned money for this type of investment, it’s crucial to know about the watch that you will be buying and eventually selling.
It also pays to know about the manufacturers, the luxury watch industry, and the current market conditions.
When you’re equipped with this knowledge, you’ll be able to know the difference between an expensive watch and a collectible watch that will grow even more expensive over the years.
8 investment grade value luxury watches
Curious to know which luxury watches you should be investing in today? Here are just some of them according to Esquire UK.
|Luxury Watch Model||Price|
|Breitling Watch Navitimer 1959 Re-Edition||438,000 PHP|
|Tudor Black Bay Chrono Steel & Gold||329,000 PHP|
|Jaeger LeCoultre Master Memovox||628,000 PHP|
|Omega Railmaster Co-Axial Master Chronometer||350,000 PHP|
|Omega Seamaster Diver 300M||267,000 PHP|
|Audemars Piguet Royal Oak Extra-Thin||3,300,000 PHP|
|Rolex Deepsea Sea-Dweller||641,000 PHP|
|Patek Philippe 5205||2,470,000 PHP|
Things to consider before purchasing an investment grade watch
History of the brand
Go with watches that have already established a good reputation.
Learn about what the brand stands for, and how it values craftsmanship or innovation.
Get to know which watches are designed for professionals, adventurers, or people with a taste for the finer things in life.
How rare and limited
The rarer a particular watch model is, the more valuable it is. Take for example Patek Philippe’s stainless steel watches from the ‘40s and the ‘50s.
They did not exactly make waves during that time, and not a lot of them were released. Because they are so few, there is a huge demand, which means they command a hefty price.
If you want to invest in newer or more contemporary pieces, make sure to go for the limited editions.
How famous it is
When a luxury watch is linked to a popular celebrity or has been worn by someone famous, the watch’s value also increases dramatically.
A 1929 wristwatch that was owned by Albert Einstein was sold for 596,000 USD in 2008 at a New York auction.
Singer and songwriter Eric Clapton, who is a watch collector himself, also had a beautiful Patek Philippe that was auctioned by Christies for a whopping 3.6 million USD.
How well it’s made
Craftsmanship is very important and pretty much dictates the value of a timepiece.
Attention to detail is what sets it apart from the rest of the watches that you can buy in the market.
Instead of purchasing quartz watches that run on replaceable batteries, buy a luxury watch that is mechanically operated. They are often entirely made by hand and assembled by master craftsmen.
Even if luxury watches are quite high maintenance, they can last for many, many years with proper care and usage.
Luxury watch investment is not for everyone, though
Know your market
To profit from your luxury watch investments, you must truly understand the market.
Know which pieces are fast-moving, on limited release, or on high demand, and which ones are not selling.
Familiarize yourself with asking prices and how much a particular timepiece is selling for.
When you know your market, you will not be under- or overpricing.
Online forums, or even eBay, are a good starting point if you want to get an idea of how much a luxury watch is worth.
Get your capital
How much money can you put into your luxury watch investment? And more importantly, how will you raise the capital?
To earn money, you must spend money. It’s best to invest with capital that came from your own pocket (savings, passive income, etc.) and not from a loan you took out from somewhere or from someone.
The great thing about investing in luxury watches is that it’s possible to get your ROI in just a short time even with a small capital if you have the right timepiece.
When people fall on hard times, the first ones they sell off are luxury items, like jewelry and watches.
You can buy their collectible luxury watches at a fraction of the cost.
Most high end brands like Patek, Rolex, Jaeger, Hublot, Audemars, Ulysse, and Panerai can be negotiated at 30% of their retail price.
If they’re quite new (not more than 2 years old) and still under warranty, you can purchase them at 50% of their retail price.
Negotiate as close as you can to these figures, but also consider the current state of the watch (blemishes, marks, stains on bracelets, etc.) when making an offer.
Sell the right way
You need to be patient when it’s time to sell. There are low ballers everywhere, so try not to take the first offer that comes through.
There will be times when you will get no offers on your listing, so make sure that it’s priced right.
Advertise in the right places so that it’s visible to potential buyers. Someone out there is looking for that exact watch – you just need to wait a while.
Take care of your watches
Before you purchase a collectible or vintage watch, verify its authenticity. Make sure that it’s in good condition and all the original parts are intact.
If possible, get the certificate, warranty card, and other original documentation.
You can wear them to promote or advertise, but take care not to sweat on it or accidently hit or scratch the watch surface.
If timepieces are your passion, then getting into luxury watch investments are a great option.
There is no exact formula, though. The watch market is always changing, so you might as well enjoy the searching, buying, and selling process!
Polish your skills and get advice from an experienced collector. And don’t forget that if something sounds too good to be true, that watch is probably a fake!
So what do you think? Are luxury watches a good place to invest your money on? Share your thoughts in the comments below.