Investing in Timeless Pieces: A Guide to Watches as an Investment

Watches, almost the only jewelry that men can wear, are highly coveted by male customers. For some, watches are a haven, just like gold. Overview of this particular market appeals to both the esthete and the investor.

INVESTING IN WATCHES

According to the watchmaking federation, in 2018 watches accounted for a third of watch and jewelry sales, or 1.8 billion euros.

The watch market is down slightly compared to 2017 because of the “yellow vests” effect between November and December. However, it is the high-end market (over 5,000 euros) that is growing the most, with sales up 4%.

A collection for passion

Each shows its usefulness. Professor Emmett Brown from the film Back to the Future (1985) used them for his space-time journeys, while the synchronization of the watches of Parker Lewis, from the American TV series of the same name, guaranteed him the success of his missions.

But for watch collectors, the appeal of a watch is above all aesthetics and identity. The watch on a man’s wrist is an extension of his personality and it is also one of the rare men’s jewelry. Indeed, depending on the type of watches we wear or the brand we buy, we reveal a facet of our personality.

The watch, a haven

Luxury collector’s watches escape fashions. For some, they are considered a haven, just like gold coins. In this, they are similar to jewelry that appreciates over time and to works of art that are increasingly seen as investments. Some brands and models will even like each other regularly.

In May 2010, a Patek Philippe ref. 1527 manufactured in 1943 fetched 4.5 million euros at auction at Christie’s.

CHOOSE A THEMATIC FOR YOUR WATCH COLLECTION

The collection should not be confused with accumulation. When you start your collection, take the time to think about which models suit you; let yourself be guided by your tastes.

To avoid scattering and regretting your purchases, choose a theme (army, aviation, navy, diving, vintage), a brand, or a complication (function other than the display of hours, minutes, seconds; chronograph or alarm clock, for example).

Vintage watches

Vintage watches are old models from prestigious brands. They have the advantage of being cheaper than new ones.

Be careful with vintage. The condition of the watch is decisive. Make sure the watch is truly original, that is, neither the movement (the watch motor) nor the dial has been changed. Also, beware of increasingly common and high-quality counterfeits, it is sometimes useful to have your watch appraised.

A spotted dial adds a cachet to the watch. It will therefore be more valuable than with a redone dial.

BERING Men Analog Solar Collection Watch with Stainless Steel Strap & Sapphire Crystal

Popular brands like Rolex, Patek Philippe, Jaeger-Lecoultre, OMEGA, and Cartier dominate the luxury watch market. In 2014, Artcurial won a record auction for a watch sold in France (€ 336,600 for a Panerai Only). The famous auction house notably sold in 2016 a Rolex “Eagle Al Maktoum” Daytona for € 186,200, a Patek Philippe “Independent Seconds” from 1968 for around € 39,000, or even a Vacheron Constantin, circa 1938 at € 46,440.

WHAT PROFITABILITY TO EXPECT FROM A WATCHMAKING INVESTMENT?

Even though it is a passionate investment, buying watches has to be profitable. So here are some rules to follow:

• For the watch to be profitable from an investment point of view, it is necessary to focus on second-hand timepieces. Indeed, new watches are often very expensive and it will take 10 to 20 years to resell them for more than they were bought and thus pocket a capital gain, but only if you have chosen the right brands.
• It is best to invest in references and trusted brands, as they are the ones that will gain the most value.
• The minimum investment amount is 500 euros, but it is better to put in 2000 euros at the start.
• When buying, look at the authenticity of the watch and its wear: the more a watch is scratched, the more it will lose value.