Investing in luxury watches can be a rewarding financial venture and an opportunity to enjoy beautiful craftsmanship. However, to maximise returns, a strategic approach is necessary. The first step is researching established brands like Rolex, Patek Philippe, and Audemars Piguet, which have a reputation for holding or increasing in value over time. Building a watchlist based on factors such as rarity, brand, and condition is an essential part of the process.

While luxury watches can prove profitable, it’s important to be mindful of risks like market fluctuations and liquidity challenges. However, with the right strategy and informed decisions, investing in luxury watches can be a lucrative and enjoyable endeavor.

Pros of Investing in Luxury Watches

Investing in luxury watches offers several advantages:

  1. Symbol of Achievement and Status
    • Milestones and Style: Luxury watches celebrate significant events and reflect style and success. They often become symbols of personal achievement and can hold historical significance.
    • Legacy: Many high-end watches are passed down as family heirlooms, combining emotional value with lasting financial worth.
  2. Financial and Economic Stability
    • Portable Assets: Unlike real estate or other investments, luxury watches are portable and can be securely stored or carried.
    • Appreciation Potential: Watches from respected brands often appreciate over time, offering a solid investment.
    • Resilience in Crises: During economic downturns, luxury watches tend to be more stable. For example, during the 2022 pandemic, the watch market only saw an 8% drop, while the S&P 500 fell by 19%.
  3. Investment and Diversification
    • Proven Appreciation: Watches from top brands like Rolex and Patek Philippe have demonstrated consistent value growth, with certain models appreciating by an average of 14% annually since the 1990s.
    • Diversification: Watches offer a unique asset class for diversifying a portfolio, acting as a hedge against inflation.

Factors Determining the Value of a Watch

When investing in luxury watches, several key factors influence their potential value:

  1. Brand Recognition: Watches from renowned brands such as Rolex and Omega tend to retain value due to their reputation for craftsmanship and quality.
  2. Condition and Maintenance: A well-maintained watch in excellent condition is more valuable than one showing wear and tear. Regular servicing helps preserve both the watch’s appearance and functionality.
  3. Rarity and Exclusivity: Limited-edition models or those with unique features generally command higher prices.
  4. Additional Factors: Elements like patina (natural aging), completeness (including original boxes and papers), celebrity associations, materials (precious metals), and complicated mechanisms (e.g., chronographs or moon phases) all affect a watch’s market value.

Discontinued Models and The Potential Impacts of These in 2025

A substantial number of models were discontinued in 2024, which is always an important consideration when looking at the broader market and potential future investment timepieces. Example models that were discontinued include:

  • Rolex Daytona ‘Le Mans’
  • Rolex Yacht Master II (Entire Collection Apart From the Original)
  • Patek Philippe Nautilus - 5980/1R / 5712R / 5712G Moon Phase

This can significantly impact the values of pre-owned watches from these collections or these specific models because they will now become finite assets within the market. While this doesn’t necessarily make them an instant choice for investment pieces, it’s certainly something to keep in mind when looking for an investment timepiece in 2025.

Steps to Start Investing in Luxury Watches

To begin investing in luxury watches, consider the following steps:

  1. Set a Budget: Luxury watches can range from €10k to €15k for entry-level models to much higher for premium pieces. Establish a clear budget based on your financial goals.
  2. Personal Preference: Choose watches that align with your personal style and taste, as you’ll want to enjoy wearing them too.
  3. Do Your Research:
    • Learn About Brands and Models: Understand the characteristics of iconic brands and their models, including what makes certain watches more valuable.
    • Create a Watchlist: Based on your research, compile a list of watches that meet your criteria for value and desirability.
  4. Monitor the Market: Stay up-to-date with trends and market movements to know when is the right time to buy or sell.
    • Make the Purchase: Decide between buying online or in-store, keeping in mind the importance of authenticity and the price difference.
    • Plan for Resale: Think long-term and establish an exit strategy for selling your watch when the time is right.

New vs. Pre-Owned Watches for Investment

Deciding between new and pre-owned watches depends on your investment goals. Each option has distinct advantages:

  • New Watches:
    • Condition and Warranty: New watches come with a manufacturer’s warranty and are in pristine condition.
    • Depreciation: New watches lose value the moment they’re bought, which may be a downside for quick returns.
  • Pre-Owned Watches:
    • Value Appreciation: Pre-owned watches, especially rare or discontinued models, have the potential to appreciate in value.
    • Cost Savings: Pre-owned watches typically cost less than new ones, offering a more affordable entry into luxury timepieces.
    • Condition and Authenticity: It’s vital to ensure the watch’s condition is good and that it comes with original documentation.

Top Brands for Pre-Owned Investment

For pre-owned luxury watches, several brands consistently perform well:

  • Rolex: Known for value retention, iconic models like the Datejust, Submariner, and Daytona are highly desirable.
  • Omega: The Speedmaster and Seamaster are favorite choices among collectors.
  • Patek Philippe: Their watches are renowned for their quality and investment potential.
  • Jaeger-LeCoultre: Known for exceptional craftsmanship, their models also hold their value over time.

Best Investment-Grade Watches

Certain watches are especially well-suited for investment, whether they are new or pre-owned:

  • New Models:
    • Rolex Daytona Cosmograph: At $14,800, it’s popular among collectors.
    • Patek Philippe Nautilus: Priced at $31,940, it’s highly coveted for its elegant design.
    • Audemars Piguet Royal Oak: Valued at $63,900, this model is a standout in the luxury watch world.
  • Pre-Owned Models:
    • Rolex Datejust (Reference 1601): Priced between $3,500 and $6,000, it’s an accessible option for Rolex collectors.
    • Omega Speedmaster Moonwatch Professional: A historic piece, priced around $6,600, with a strong collector following.

Top Watch Brands for Investment

Some watch brands are more likely to provide consistent returns on investment:

  • Rolex: Models like the Submariner, Daytona, and GMT-Master II have proven longevity and appreciation.
  • Patek Philippe: The Nautilus and Aquanaut are especially valuable among investors.
  • Audemars Piguet: The Royal Oak is particularly sought after due to its craftsmanship and high resale value.
  • Omega: Watches like the Speedmaster and Seamaster are revered by collectors and continue to hold their value.

How to Store Investment Watches

Proper storage is crucial for maintaining the value of your luxury watches. Here are a few storage tips:

  • Watch Boxes and Winders: These help protect watches from dust and scratches and ensure automatic watches keep accurate time.
  • Environmental Conditions: Keep watches in a cool, dry place, away from moisture and sunlight.
  • Security: For high-value pieces, use a safe or safety deposit box.
  • Regular Maintenance: Ensure watches are serviced by a professional to maintain their functionality.

Conclusion

Investing in luxury watches offers both emotional rewards and the potential for financial gain. By considering factors like brand reputation, condition, rarity, and market demand, investors can make well-informed decisions. Whether purchasing new or pre-owned, a careful approach can lead to significant returns and the enjoyment of owning timeless pieces of craftsmanship.

Our team have expert insights into the market and we are more than happy to discuss your investment requirements and what you are looking for when looking for an investment timepiece.