Watches as an investment
A large part of the pitch to my wife about my watch collection is - hey look, they hold value and are at least a passable investment.
Obviously this is very brand and watch specific, limited editions, specific brands etc will do better than cheaper, generic.
But it seems that even at the high end of sought after watches, the market is cooling.
I also heard that some of these brands buy their own stock (especially at auctions) to keep the price high. Not a bad strategy to maintain scarcity.
Also in an inflationary environment, holding assets (houses, watches etc) is not a bad hedge IF they have some value.
What are your thoughts on the watch market as an investment, especially given the recent downturn in the Bloomberg index.
Every move you make, every step you take, I’ll be watching you…
Never get high on your own supply. There are better things to invest in than watches.
I think the watch investment market is a very small, niche market that typically will see winners with exceptional complications, small in number from the highest end of the industry. The exception to this as ever is Rolex where you'll always retain some kind of value against retail.
The last few years were nothing more than a fad & there are thousands upon thousands of people out there with watches they probably paid too much for as a result. The cooling in prices was inevitable & is now exacerbated by higher rates of inflation than we've seen since the 90s.
If you want to make investment returns from a watch you better ensure you buy the absolute highest quality timepieces you can. Don't do so in a once in a blue moon bull market.
A Rolex only holds value when you sell it. You have yo part with it get your investment back.
It's also a non income producing asset with ongoing maintenance costs that aren't cheap.
Will leave this here. While some can technically be investments; IE it may retain value, or in some cases grow, but as a whole they remain poor investments.
https://www.watchcrunch.com/AllTheWatches/posts/friendly-reminder-watches-are-not-a-sound-investment-strategy-211099
Seems to me that buying watches as an investment shouldn’t be the driving reason to do so. Rolex has had a large number of its customers buying them for this reason alone. It has made it problematic for Rolex, I think. It has meant those people who want to just purchase a Submariner to wear it have been edged out in favour of the collectors, who either flip the watch or put it away in their safe. Seems that things are changing and with many models now selling below retail the ADs are struggling to shift certain models. This will hopefully make Rolex easier to purchase for those that just want to buy a watch they like and wear it as it was designed to be.
Unless it's a rare FP Journe or MB&F it's a risk.... however it's still a great excuse!😂
I don’t invest in watches. There are better investments.
Seems to me that buying watches as an investment shouldn’t be the driving reason to do so. Rolex has had a large number of its customers buying them for this reason alone. It has made it problematic for Rolex, I think. It has meant those people who want to just purchase a Submariner to wear it have been edged out in favour of the collectors, who either flip the watch or put it away in their safe. Seems that things are changing and with many models now selling below retail the ADs are struggling to shift certain models. This will hopefully make Rolex easier to purchase for those that just want to buy a watch they like and wear it as it was designed to be.
Ah, yes. When crypto kings start dumping their Rolex en masse after their 2-3 year run.
Ah, yes. When crypto kings start dumping their Rolex en masse after their 2-3 year run.
Well they probably won’t be making any money on them-well not as much as they would have a couple of years ago…
Well they probably won’t be making any money on them-well not as much as they would have a couple of years ago…
True dat. Which makes the mean part of me laugh especially since they are a part of the Youtube brigade touting the value of a Rolex as an investment piece before going up to a Patek/AP.
If there's one thing I'm grateful for Vacheron Constantine is the fact they didn't give in to crypto money. Or if they did it wasn't talked about too much.
You'll likely make more money in crypto.
Yeah Vacheron aren’t in that group-they go under the radar, a bit. Interestingly though their sales have been increasing because of the lack of availability of the other three brands you’ve named. I think it may become harder to buy them as a consequence
I’ll stick with ETFs
Same as cars , cheap cars depreciate generally while Ferrari, Porsche and possibly Koniseg , McClaren appreciate. Some Patek like 5911 Nautilus will hold and appreciate, Some Rolex and Vacheron, not all will . Same as cars , depending on model year , allocation etc . In short watches are generally Veblen inferior goods until their not ! No one has a crystal ball and depends also how long you’re holding and how long ago you paid what for it . My advice is jump in a time machine back just 20 years and buy every Bitcoin you can lay your hands on and change your name to Michael Saylor 😂
Never get high on your own supply. There are better things to invest in than watches.
I wish I could do a Wim Hof or a Sadguru and get high on my own supply 🙂
I sincerely hope the prices crash a lot more.
Definitely not.
That’s not to say you won’t make money out of the odd watch but if you’re smart enough to make money on a few watches you’re smart enough to make more money elsewhere.
I purchased my Sub 20years ago, it was for the purpose off use for work. Unbeknownst to me The value of the watch has been slowly creeping up. I was only alerted to the value of the watch from a colleague two years ago. I did not see the purpose of purchasing a watch and not using it as it is a tool. I am very pleased that the value has been falling, so I will never have any regret for wearing it and using it for work and accidentally damaging it. At the end of the day, it is an instrument and tool for work! Not a chunk of medal to be locked up in the safe at home for the fear of damaging it.
I think people watch to much Antique Road Show. You can make money in the watch game but you have to stay on top of it.
The present owners of a Rolex ad here in Toronto have been building a large showroom on Bloor Street, Toronto’s luxury shopping district. I am curious to see the inventory and volume of business they will experience. Past history suggests difficulty for customers walking in looking for a Rolex and another successful venture for the owners who are also the landlords.
Watches, like cars, are not a sound financial investment if you’re looking to make money in the long run. I’d I were concerned about value, I’d be mad my Tissot SeaStar 2K lost $250 as soon as I bought it, but I’m not cause that’s not why I bought it
Watches, like cars, are not a sound financial investment if you’re looking to make money in the long run. I’d I were concerned about value, I’d be mad my Tissot SeaStar 2K lost $250 as soon as I bought it, but I’m not cause that’s not why I bought it
Does depend on the car / watch, but I agree
The present owners of a Rolex ad here in Toronto have been building a large showroom on Bloor Street, Toronto’s luxury shopping district. I am curious to see the inventory and volume of business they will experience. Past history suggests difficulty for customers walking in looking for a Rolex and another successful venture for the owners who are also the landlords.
Interesting
Me too - although I have a few on the collection that I hope at least hold their value!! (AP - I’m looking at you! ;-)!
Interesting
I wonder if the same manager who joked that I would not live long enough to receive a steel Daytona will move to the new massive boutique. I was not offended because I lost interest in Rolex during the late 80s, haha and seem to recall when she was just starting out as a sales pro.
I don't have the kind of cash to buy a watch that MIGHT be a good investment as the 'sure bet' investments (if they exist) seem to start at 50k and go much further up from there (see AP, VC, PP). The only other 'sure bet' would be getting certain Rolexes at retail and flipping them. Even that might stop being worth it if the rumored Rolex supply increases materialize.
Rare vintage models will likely always hold value as they are obviously no longer in production, but the chance of appreciation likely depends on the flavor of the month and originality of the piece as well as the amount of wear on the piece, meaning you'll never be able to enjoy the watch for what it is.
Truthfully as much as many of us may use the 'it's an investment' argument to justify our purchases, it's really probably more of an 'it will probably always be worth something' situation.
My philosophy - Be honest with yourself and treat it what it is - an expensive hobby.
1: Expect to lose some money.
2: Be smart with your buying and aim to retain value.
3: Treat any gains as a bonus.
If you want to invest, buy assets not speculative commodities
I’ll stick with ETFs
The smartest approach is often the most simple
I think the watch investment market is a very small, niche market that typically will see winners with exceptional complications, small in number from the highest end of the industry. The exception to this as ever is Rolex where you'll always retain some kind of value against retail.
The last few years were nothing more than a fad & there are thousands upon thousands of people out there with watches they probably paid too much for as a result. The cooling in prices was inevitable & is now exacerbated by higher rates of inflation than we've seen since the 90s.
If you want to make investment returns from a watch you better ensure you buy the absolute highest quality timepieces you can. Don't do so in a once in a blue moon bull market.
Looking forward to the inevitable sell off, these timepieces. I genuinely can’t believe how short sighted people have been. Everyone being at home sitting on the internet bored for 2 years should have been a tiny bit of a clue!
Looking forward to the inevitable sell off, these timepieces. I genuinely can’t believe how short sighted people have been. Everyone being at home sitting on the internet bored for 2 years should have been a tiny bit of a clue!
I can't lecture anyone on restraint but I can try to express the importance of getting value for what you most desire. If something is overpriced, no matter how much I may want the item, I simply will not pay over the odds just to get it.
The individuals that were paying £20,000+ for a Tiffany dial Oyster Perpetual 36mm I cannot find a crumb of sympathy for.