Investment or expense?
Generally speaking, watches are not an investment, but rather a personal preference and luxury. However,to be considered an investment I would say it depends on three factors:
1. Whether the collectors' market considers it iconic or special for some reason, and it is highly desired for its design, craftsmanship, and/or individual and brand history.
2. The quantity of watches produced. With lower supply, the price will necessarily rise in the secondary market, as long as the premise of point 1 is met.
3. Whether the timing is right. During the pandemic, there was excess money (in the US, families received economic support so, and as a result, demand for luxury items increased significantly. High-end watches had very high returns in the secondary market, also because manufacturers could not produce the same quantities due to limited availability of engineers and labor force due to the pandemic effect.
Today, the secondary market has stabilized. In Mexico, the fx dollar peso exchange is trading at 16.90 per dollar, making it a good time to invest in a watch that meets the first two conditions. But, most importantly, one has to make sure the watch we choose is really the watch we want!
Obsessed with watches…
Indeed, like picking a stock or other speculation, one must properly anticipate how a rather unpredictable market will move. Being a tangible item, I'd equate it more with an automobile. It's all well and good to consider resale value, but do get something that will properly serve you and make you happy first and foremost. You have much more control of that factor than any other.
IDK about other families, but no we did not
IDK about other families, but no we did not
Same here. Maybe unemployed to families? 😕
Same here. Maybe unemployed to families? 😕
Maybe?
Both my wife & I were lucky enough to still be working thru the whole thing (essential worker for her, fully remote capable for me) and I know we got 2 stimulus checks, but not $2500 a week (which is $62,500 yearly, or 1.6x the median US income in 2022)
Maybe?
Both my wife & I were lucky enough to still be working thru the whole thing (essential worker for her, fully remote capable for me) and I know we got 2 stimulus checks, but not $2500 a week (which is $62,500 yearly, or 1.6x the median US income in 2022)
So 2,500 a month maybe? I took out the figure in my post. Thks
Watches remain lousy investments, even the best of them when compared to a longer window of time. As many of us have posted and provided charts, even the best watches lose to a basic index fund.
Sure some might gain value, most will not. Still does not change the fact they will lose money comparatively and parking cash there thinking it will turn into something is like lighting it on fire.
Watches remain lousy investments, even the best of them when compared to a longer window of time. As many of us have posted and provided charts, even the best watches lose to a basic index fund.
Sure some might gain value, most will not. Still does not change the fact they will lose money comparatively and parking cash there thinking it will turn into something is like lighting it on fire.
Yes….only lottery watches are the exception (i.e. the Patek Philippe Nautilus Tiffany)
I would never buy a watch as an investment. That said, it's one of the only hobbies where I can buy something, use it for a while, and (generally) get a good chunk of my money back. Good deal, if you ask me.
I would never buy a watch as an investment. That said, it's one of the only hobbies where I can buy something, use it for a while, and (generally) get a good chunk of my money back. Good deal, if you ask me.
Agree..I’m not a seller actually. Want to keep my watches for generations to come…
why is the bezel not aligned?
why is the bezel not aligned?
Good question 🤣
Its a depreciating asset that also requires maintenance, however, you can retain a lot of the value if you buy right. This does not apply to many chrap watches ive bought.
After a few cheapies though I've made myself get more serious about the rest of my finances for watches because i cant justify the spend for big boy watches unless the rest of my life and leisure is covered.
Then the upside is you enjoy yourself a d can likely get a lot of your cash out if you buy right and people stay interested in timepieces.
The IRS considers it an investment and will tax it accordingly. Be aware this class of investment is not allowed to deduct capital loss if you are a collector
Cool #iwc 👌
They're an expense to me. I don't purchase with the intent of ever selling. Even if they increase in value, it will make no tangible difference to me because the financial gain will not be realized in my lifetime. There would have to be some unforseen tragedy for me to sell them.
Additionally, my intent is to keep the original movements well serviced, which is an ongoing expense that is likely to continue to inflate over time.
So they're only going to cost me money.