Watches as investment ?

But what additional value can time bring to the watch ? Do all models possess the same potential ? Let us guide you through this article as we explore the answers to these questions and much more.

I can already hear you objecting, quite rightly, that most of these watches would have been out of reach for the vast majority of us from the day they were first purchased.
Nevertheless, the logic that makes the resale of these prestigious timepieces so profitable also guides the resale of more affordable ones.

As the over-representation of Patek Philippe watches in the ranking shows it, the rarity criterion combined with the prestige of the brand are major forces in determining the resale price.

Indeed, the oldest the model, the more probable it is that modifications or upgrades to its mechanism or design will have been made, with the consequence that the original piece will only be made available on the secondary market. Then, naturally, the rarity of the remaining well-preserved models will only increase.
In the same way, stopping the production of a watch can only help to make it more valuable, but there is no guarantee.

Finally, the condition of the watch is a variable not to be neglected, and if you intend above all to make your timepiece an investment object, it would be better to take great care of it or to keep it safe from any impact and deterioration. A second-hand watch in “as new” condition can indeed be sold with a 15% to 30% premium compared to a more altered one (2).
In the same way, you should make sure to keep the original box and papers as they allow you to easily prove that your timepiece is not counterfeited. Sellers who cannot provide them should expect an average 20% drop in the resale price of their watch (3).

While the brand confers an undeniable and particular aura to its timepieces, some models sometimes acquire a specific recognition and image through their marketing positioning, celebrities they are associated with or through particular events linked to their history.

It also appears that the differential with the initial retail price can increase significantly over time. Indeed, Eric Clapton’s Rolex Daytona Oyster Albino, first sold by the artist in 2003 for $505,000, was auctioned off again in 2015 for almost $1,400,000 (7), thus twice breaking the record for highest price ever paid for a second-hand Rolex watch !

Unsurprisingly, almost all articles written on the subject of investment watches systematically mention the same pair of brands : Rolex and Patek Philippe.
Recurring references to major brands such as Audemars Piguet, Omega and also F. P. Journe are also made. The latter, even though it is not as famous as some others, is mostly characterized by the extreme precision of its mechanisms and the rarity of its chronometers, of which less than a thousand are manufactured each year.

We will be careful not to attest to this. However, another element could support as well that markets would have a newly found enthusiasm for luxury watches.
Indeed, among the top 100 most profitable watches ever sold at auction, as much as 31 timepieces made it into the ranking between 2017 and 2019.

The latest Knight Frank index, established in Q2 2019, also illustrates the progression of investment watches in the ranking on recent time spans even though the reported yields remain modest. It would seem as well that watches do not make it anymore into the top 5 most profitable assets on the last 12 months.

But, beyond mere asset, the timepiece has an advantage that other investment classes such as wine or cars are deprived of : it is possible to fully enjoy it without depreciating its value, and its reliable mechanical operation can ensure its longevity for several generations while still gaining in value.