For some, it’s considered a soulless marketplace focused on financial gain, devoid of the emotion and passion that comes with owning a luxury item.
But for more savvy investors, it’s a business with dual benefits. Because not only are you making a seemingly strong investment, but you also get to grace your wrist with luxury until you decide to sell.
And like fine art, classic cars and oil paintings, the value of luxury watches continues to rise. Unlike their digital counterparts, it seems the older they become, the more they tend to fetch.
For example, let’s look at the iconic Swiss watchmaker Rolex.
In January 2022, they increased retail prices on new models by an average of 3.4%. And, as you’ve probably guessed, it means the value of a pre-owned Rolex has followed suit.
But surely the surge in luxury watch value must stop at some point, right? Well, as long as global demand for certain models is greater than the rate of production, it looks unlikely.
That said, no one knows for certain what the future holds for the luxury watch market. So before you make a purchase in the hope of making a profit, just remember, nothing is guaranteed.
Why invest in a pre-owned luxury watch?
You may already have your reasons to invest in a pre-owned luxury watch, but here are a few more to consider.
Ease of access
Unlike savings locked away in an ISA or a crypto account, investing in a luxury watch means you have fast access to your assets.
With more popularity and demand than ever before, you might find a luxury watch sells quicker than many other investment items.
And what’s more, a luxury watch is easily portable and requires no outlay on ongoing storage costs.
Mark a milestone
Apart from the financial gain associated with buying a luxury watch, some might invest in a sought-after piece to mark a milestone.
At GA Jewellers and Pawnbrokers, we’ve helped many watch enthusiasts find the perfect piece to celebrate a wedding anniversary, retirement, birthday and even the odd promotion.
Whatever the occasion, we’re happy to help you find the luxury watch you desire.
Leave a legacy
As the famous Patek Philippe saying goes: “You never actually own a luxury watch. You merely look after it for the next generation”.
That’s because luxury watches are built to last. So even if you don’t cash in on your investment during your lifetime, its value will continue to rise in the hands of whoever you leave it to.
Price rises in 2022
As you will have noticed, everything is getting more expensive – and luxury watches are no exception.
With higher labour and transportation costs for new luxury watches, retail prices continue to increase with no sign of slowing down any time soon.
Add to the equation the excessive waiting time for a brand-new watch – such as a Rolex – and suddenly the pre-owned market has become more active than ever.
On a side note, if you’re not sure whether to opt for a new or used Rolex, we share our thoughts right here.
Most valuable luxury watch brands
Some luxury watches are better investments than others. Scarcity is always a strong starting point, so if you’re looking for the perfect luxury watch investment, assess its rarity.
Should you find a potential investment opportunity, be sure to check all paperwork, authenticity and condition. Also look out for any engravings from previous owners that may reduce its value.
Be careful of counterfeits
The luxury watch market is one of the most counterfeited markets in the world. To the untrained eye, it’s near enough impossible to tell a real from an outright fake.
If you need a second opinion on an item, feel free to ask. And if the deal seems too good to be true, it probably is.
So, should you invest in a pre-owned luxury watch?
While no timepiece is absolutely guaranteed to be a profitable investment, recent marketplace trends would suggest it’s a wise option.
Of course, a luxury watch isn’t just about the financial gain, it’s also about the enjoyment you get from owning a vintage piece – a feeling some might say is priceless.