You are more and more attracted by the idea of investing in a luxury watch. However, you have a number of questions:
- Where to buy the watch?
- Should I invest in a Rolex, a Patek Philippe or another brand?
- How to choose the ideal model?
- How do I know if the watch is genuine?
The most important thing when buying a watch is to choose a model that you really like and whose value is likely to increase or at least be maintained over time. Therefore, consider your preferences in relation to your budget and learn about the most iconic brands and models.
Here are some tips to help you make a successful investment in a watch.
How to invest in watches?
There are two ways to invest in a watch: going to the new market or the used market. Buying a watch in the new market, i.e. from a brand's official boutique or from an authorized dealer, is a 100% guarantee of authenticity. In addition, you benefit from a guarantee according to the conditions established by the manufacturer.
As for the price of a new watch, it varies between 1,000 and 50,000 € depending on the brand, range and model.
However, it is not always easy to invest in a watch on the new market. One can face limitations such as: unaffordable price, rarity of some models... But also, the vast majority of new watches tend to lose part of their value on the resale market. Very few brands see some of their models increase in value as soon as they are purchased by the customer.
It is for all these reasons that informed collectors now prefer tobuy and sell watches on the second-hand market. This segment gathers private individuals and professionals (resellers of new used luxury watches, auction houses, online sales platforms...).
If you want to invest in a watch with the aim of making a profit, it is in this circuit that you can make good deals provided that you avoid scams and counterfeits. You can find new, unworn models that are sold for 20 to 30% less than the list price. You can also buy "second hand" watches at interesting prices.
In this category, you will be offered timepieces that have already been worn and are no longer available in the catalogs of the various brands, or very old collector's watches, also known as vintage watches. However, some rare and highly sought-after models are offered at a price three times (or more) higher than the official selling price on the second-hand market.
So should you buy a second-hand luxury watch or a new model? It all depends on your budget and your objective (short or long term profitability).
Is investing in a watch profitable?
Over the past two decades, the watch market has boomed. It all started when the big luxury watch brands increased the price of their new watches. This increase in price has led many watch lovers to look at second hand or vintage models.
The second-hand market is developing quite rapidly, offering real opportunities. On the one hand, we have a wider public who can invest in prestigious watches at more affordable prices. On the other hand, the owners of old or vintage watches who resell their property with a more or less interesting capital gain.
Moreover, some highly sought-after models sell for 5 to 10 times more and enthusiasts are ready to put their hands in their pockets to enrich their collection. All this encourages price increases, consolidates the market and arouses the interest of investors. The question is: is the luxury watch a safe haven like gold?
Investing in a rolex watch or other can be profitable provided that the right choice is made according to your objectives. Indeed, a purchase of a luxury watch like that at random to hope to make a margin in case of resale. The selling price will depend on many parameters: brand, model, year of the model, condition of the model, rarity, etc. Some models will appreciate, others will stagnate or depreciate.
Which watch brand should I invest in?
In terms of investment in watches, not all luxury watch brands are equal. Some companies like Rolex, Patek Philippe Audemars Piguet, Omega ... have a very high popularity rating as they reflect the prestige and high quality.
Most of the watches belonging to these watch manufacturers have a relatively stable value on the resale market and hardly lose their value in the long term. On the contrary, the value of some models may even increase over time. These are clearly the brands you should consider if you want to invest in a watch with the intention of reselling it.
Here are some of the most sought-after brands and their iconic models that are gaining the most value over time:
- Cartier: the Tank and the Santos
- Jaeger-Lecoultre: the Reverso, the Geophysic and the Mémovox
- Omega : the Speedmaster and the Seamaster
- Rolex : the Daytona, the GMT-Master and the Submariner
- Audemars Piguet: the Royal Oak
- Patek Philippe : the Nautilus
- Tag Heuer : the Monaco
- IWC: the Pilot and the Portuguese
- Breitling: the Navitimer and the Chronomat
- Zenith : El Primero
- Panerai: Radiomir and the Luminor
- BlancPain: the Fifty Fathoms
- Tudor : BlackBay
When should I resell a watch?
It depends on you. If you decide to invest in a Rolex now? How long do you plan to keep it before reselling it? Are you making a short-term investment (less than 1 year), a medium-term investment (between 1 and 10 years) or a long-term investment, beyond 10 years?
In any case, you can sell your watch at any time as long as you feel the need. Some investors sell their watch because it seems to have reached its optimum value or because they need the money for reinvestment or other needs.
If you want to get the most out of your investment in a watch as soon as possible, you can buy the most coveted collector's items. These include iconic models like the Daytona, Day-Date or Submariner from Rolex, the Aquanaut or Nautilus from Patek Philippe, the Royal Oak Jumbo from Audemars Piguet. These are sure values and everything leads us to believe that their popularity will continue to increase.
If you prefer to invest in a watch for the medium or long term, you can take the time to analyze the market, the brands and the trends. Focus on buying a watch that can potentially increase in value in the years to come: opt for limited edition watches, Precollectors luxury watches or models from recent brands such as Philippe Dufour, François-Paul Journe, Kari Voutilainen, Unimatic, Ming, Laventure and Aquastar...
Tips for investing in a watch
If you want to succeed in your investment in watches, here are some tips that you must follow.
Buying a watch is above all a pleasure investment. Opt for the model that you really like and that reflects your personality. You want a pilot's watch, a diver's watch, an aviator's watch or just a nice watch... Treat yourself. In addition, you should really consider your budget before investing in a watch. Avoid going into debt and don't ruin yourself. There is bound to be a luxury watch that fits your wallet.
As mentioned above, focus on well-known brands and the most popular references or those that are likely to become so, such as "limited editions" and precollectors.
If you want to buy a recent second hand watch, prefer the models in full-set, that is to say those which have their original papers (invoice, certificate of authenticity, box...).
You want to invest in a second-hand Rolex or another brand? Choose well-known dealers, auctions or reputable online sales platforms that give you guarantees.
Avoid buying a watch from a private individual who does not provide any proof of authenticity or does not allow you to send the watch to an expert for verification.
In addition to the authenticity, the rarity of the model and the reputation of the brand, keep in mind that the state of conservation of the timepiece will be a determining factor when reselling it. If you want to make a good profit, make sure that the watch remains in good condition, protect it from shocks and bad weather and maintain it regularly. Remember, however, that some investors prefer watches in their original condition, especially if it is a very old collector's watch.
How do I know if the watch I buy is authentic?
It would be a big mistake to invest in a Rolex (or other brand) watch that is not authentic. You won't get any benefit from it. There are so many fake watches out there today, so you need to be careful and check the authenticity of the one you intend to buy.
Ask for the original papers, especially the certificate of authenticity. Do not buy online without meeting the seller and inspecting the watch. If the watch is old, check the parts because some components may have been replaced by fakes.
Check the serial number and model number to authenticate the watch. Some imitations are so good that you won't know what hit you. The best thing to do is to ask the seller to go together to a watchmaker to open the watch. If he is serious, he won't mind. We recommend you to read our article which details the 5 tips to know if a watch is real or fake.
You also have the option of ordering a Watch Certificate™ for your watch. Our experts will take care of verifying its authenticity thanks to their world-renowned know-how.
We are at your disposal for any questions, contact us now.
