With the rise of investment in tangible assets, watches have become a new favorite for investors. However, the watch market is complex, so how can investors identify good watches to invest in? This article will analyze the current watch investment market, explain what factors make a watch profitable, and provide guidance on choosing lucrative luxury watches to add to your portfolio.
Focus on iconic vintage models from top brands
When investing in watches, the most important factors are brand reputation and collectibility. Leading luxury brands like Patek Philippe, Rolex, and Audemars Piguet have released many iconic vintage models that appreciate greatly in value. For example, the Rolex Daytona Reference 6263 and the Patek Philippe Nautilus Reference 3700 are both highly sought after by collectors and investors. These vintage models have proven their value over decades, and are likely to continue increasing in price. Investors should focus their research on identifying vintage references from top brands that are historically significant and in high demand.
Opt for stainless steel sport watches over precious metals
While solid gold watches may seem appealing, stainless steel models from top brands tend to perform better as investments. Luxury sport watches like the Rolex Submariner, Patek Philippe Nautilus, and Audemars Piguet Royal Oak have seen meteoric price rises in recent years. These stainless steel watches are more affordable and wearable for daily use. Precious metal watches have higher intrinsic value, but lack the same collectibility and brand prestige. For investment purposes, durable and versatile stainless steel sport watches are likely safer bets.
Select pieces in excellent, original condition
For collectible watches, condition is paramount. Small scratches, dents, or signs of heavy use can dramatically impact value. When evaluating watches, investors should look for near mint examples with sharp case details, unblemished dials, and little to no stretch in the bracelet. All parts should be original factory components. While refurbishment can improve appearance, collectors heavily favor watches in all original condition. Paying a premium for outstanding examples in unworn or gently used condition is worth the extra cost in the long run.
Verify authenticity and service history
Unfortunately, counterfeiting is rampant in the luxury watch market. Investors must be vigilant about only purchasing timepieces from trusted sellers, and confirming authenticity through an expert appraisal, paperwork, or certification from the manufacturer. Service and repair history also provide insight into how well the watch has been maintained. Pieces that come with original purchase receipts, warranty cards, and recent service records instill confidence in serious buyers.
Focusing on vintage sport watches in stainless steel from acclaimed brands like Rolex and Patek Philippe offers investors the best opportunity when investing in watches. Opting for iconic references in excellent original condition and verifying authenticity are also key to acquiring pieces that will appreciate over time.