When someone spends a lot of money, they typically like to think of their purchase as an investment. Items like cars and electronics probably shouldn't be invested in. The minute a car is driven out of the showroom it depreciates and electronics become obsolete with the invention of the next big thing. But there are certain luxury items that retain their value over time. Mechanical watches have become one of those exceptions. Vintage timepieces can keep their value over time; some even appreciate!
Are Watches a Good Investment?
The stock market is volatile, precious metals continually fluctuate, but done right, investing in watches can be lucrative. Vintage watches have a tendency to hold their value over the years and can also hit it big! Recent auctions of premium second-hand watches have seen prices soaring. Vintage watches are all the rage, and you can see a significant return on your investment if you’re smart.
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For example, a 1949 Rolex Oyster Perpetual watch with a cloisonné enamel dial was purchased for $83,237 in 2005. In 2014, the exact same watch sold for $1,242,040 at auction. Of course, not all investment watches offer this type of return, so you need to know the right pieces to invest in.
Selecting the Right Watch
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The key to investing in timepieces is to educate yourself on the best brands and models that will hold their value. If a small return on investment is all you’re looking for, then there's one brand beyond all others that will help you meet your goal: Rolex. The premier name in the timepiece game, a Rolex will almost always retain its worth. Rolex and Patek Philippe retain more value than most brands, and can, at times, increase in price.
Do They Keep Their Value?
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If you stick to the brands and models mentioned above, your investment should retain most of its value or even grow. Many see significant returns over time. Investing in watches isn’t about taking risks, especially as you can always get an evaluation of your luxury watch whenever you need it. Make sure you stick with what works. The less known a watch brand is, the less likely any of their models will hold value.
The Main Reason to Buy a Luxury Watch
While many collectors see enormous monetary gains from their watches, it’s important to note buying a luxury watch isn’t really about the money. The best advice is to invest in a timepiece you love and want to wear. Your new watch is not a stock or a bar of gold – it’s a useful, classic piece of jewelry that should be worn, shown, and enjoyed. Any return on your investment watches should become a secondary goal.