Any watch with a shelf value of more than $500 should, rightly, raise a couple of questions before the paper or plastic is busted out, as should any large sum of money on an item not crucial to basic survival.
Sure, luxury and Swiss-made watches are great gifts, tokens of milestones and practical accessories - but as an appreciating asset, you’d be correct in assuming the folk over on Wall Street aren’t giving it a second thought. That was until recently, with a number of studies touting the benefits of watches as sound personal investments.
According to Knight Frank’s 2014 Luxury Investment Index, watches are expected to appreciate 68 percent over 10 years, coming in just short of luxury vintage cars. At auctions over the world, some watches have fetched over 200 percent more than they were first bought for. With this in mind, does it make fiscal sense for you to approach buying your timepiece in this way?
So, are watches a waste of money, or are watches an investment? Here are some things to consider when asking both of those questions.
According to Worthy, the six top brands to hold, and many times exceed, their value over time are Rolex, Patek Philippe, Breitling, TAG Heuer, Omega and Jaeger-Le Coultre. So, if you’re able to pick up one of these babies, the bet is safe that you won’t lose out, and may even make a profit. Watches as a commodity have grown 5% in the last 12 months, 35% in the last 5 years and 67% in the last 10 years for these watches - a very compelling argument in the for camp.
The watches condition
Buying a luxury watch with the view to selling it in 15 years is all well and good, as long as the watch is in a saleable condition. Without regularly servicing, maintaining and cleaning your timepiece, you can’t expect anyone else to pick up the slack later on, purchasing something that may or may not be working as it should. For the things to keep in mind here, check out our article on how to care for a luxury watch.
How much you paid for it
The price you buy your watch for can greatly impact the profits, if any, you make on selling it. To this end, consider every single percentage of a saving (even if it’s 10% made on the upfront cost) as a direct saving for later on. Some of the best ways to do this are going through eBay, utilising store discounts, buying it second-hand, comparing the market, or shopping wholesale with a family-owned retailer.
Of course, if you’re that keen on making a profit from investing in watches, consider investing in an actual watch fund - you can find information about these online. And remember, watches aren’t only for adding a nice cushion to your bank account - they’re practical, a fashion statement, a way to showcase your personality and the heirlooms of your future.
ABOUT WATCH DIRECT:
Watch Direct is Australia’s number one watch website for brand new, high-quality designer watches. They’re exactly the same as those you would find in the shops, simply with a better price tag. A range of styles, brands and designs offer a perfect potential watch for every buyer - including Armani, Citizen, Tissot, Breitling and many more. Hurry, time is ticking!