Luxury watches have always been a popular investment choice among watch enthusiasts and collectors. In 2023, with global economic uncertainty and inflation, luxury watches stand out as an alternative investment with good appreciation potential. When selected carefully, luxury watches like Rolex, Patek Philippe, Omega etc. can generate substantial returns over long term. This article discusses the viability and methods for investing in luxury watches in 2023.
Luxury Watch Prices Have Risen Sharply in Recent Years
The prices of popular luxury watch models like Rolex, Audemars Piguet, Patek Philippe etc. have registered sharp increases in recent years. For instance, the price of stainless steel Rolex Submariner has tripled in the grey market over the last 5 years. This rising trend is expected to continue in 2023 as well, making luxury watches a lucrative investment option.
Limited Supply and Strong Demand Driving Price Growth
One of the key reasons behind luxury watch price growth is limited supply by brands combined with ever increasing demand globally. Waitlists for getting popular Rolex, AP and PP models runs into years, creating a supply demand imbalance. This leads to high premiums and rising prices in secondary markets.
Watches Offer Good Risk Diversification for Investors
The prices of watches have low correlation to stock markets and real estate. This offers investors an opportunity for portfolio diversification and hedging against volatility in other assets. With global uncertainties in 2023, allocation to alternative assets like watches makes sense.
Focus on Popular Steel Sport Models for Higher Returns
While investing in luxury watches, the best approach is to focus on popular steel sports models from marquee brands like Rolex, Omega, AP etc. These tend to have higher liquidity and price appreciation over time. Models like Rolex Submariner, Omega Speedmaster Professional, AP Royal Oak 15202 are top recommendations.
In summary, 2023 presents an attractive opportunity for investors to allocate a small portion of their portfolio into luxury watches. Care needs to be exercised in selecting specific models keeping an eye on popularity, brand value and potential price growth over a 5-10 year horizon. Used wisely, watches can deliver high risk-adjusted returns and portfolio diversification.