Buying a watch is straightforward, but investing in the right watch can be tricky, so we are going to help you out with some simple tips. Keep in mind, though, to only invest if you have a passion for watches. Because without passion, you will quickly lose interest in the market developments which are however often essential for a successful watch purchase. So what should you know about investing in watches?
3 steps to successfully buying a watch
Interest, inform, investThese three steps will help you make a profitable watch purchase. Once you have discovered your passion for watches, be it the focus on a specific brand or maybe certain types of models, you can start looking for further information.
The more research conducted, the higher the chance that you will not be investing in a fake or a watch that will not provide a return. Books, forums, and websites all provide a wealth of information – and don’t hesitate to ask local jewelers and watchmakers for help. It is important to read up on the history behind rare and sought after models, how to spot a real from a fake and also past and current market developments. Luckily, the market developments and history of big watch brands are largely documented in horology forums. So with a little diligence, you can gain the required knowledge and will develop a good sense for the right investments.
Pay attention to brands and models
Watches that are known to retain their value well include Patek Philippe, Rolex and Audemars Piguet. However, it is not just about the name. Many factors go into making a watch a collector’s item. Read up on the history of the watch to find an interesting background story, look out for unique features, and always be on the scout for limited edition watches. The Rolex Cosmograph Daytona 6239 is a great example. This rare watch was tailor-made for medical professionals in 1966, featuring a blue pulsometer on the outer edge of the dial allowing doctors to measure patients' heartbeats. Only a handful of these models are known to exist, contributing to this watch's allure and price with one selling for $1,113,106 this year in Geneva.
Profit from limited editions
As explained, a watch produced in limited quantity will most likely maintain or even increase its value. Because of their smaller number of pieces, limited editions are commonly sold even before launch. This means that the used watch market is the only place to snap these up. With a little knowledge and good timing, lucrative profits can be made off of limited-edition releases soon after their release. Very limited editions such as the Omega Seamaster 300 James Bond "Spectre" Ltd. or the Omega Speedmaster Snoopy are perfect examples in this regard.
Attractive investment: Pre-owned watches
You should also consider investing in pre-owned watches, as you could make a higher return quicker. Once worn, watch prices often fall dramatically. So if you buy a watch at a good price and then invest in its restoration, you can stand to make a good return.
However, the value of a watch can be reduced by a variety of factors, so it is always best to ask a reliable dealer for advice. At Watchmaster for example, all pre-owned and vintage watches are tested and certified for authenticity. Buying timepieces from Watchmaster, you can always be certain to receive an authentic original watch.
Reduce your risk
You should always remember not to invest too much of your portfolio in watches. Make sure that you never invest more than 10% of your investment capital in watches. By setting such a personal limit, you will reduce your own risk and can enjoy profits longer. It is important to remember that a watch’s price tag does not determine its merit as an investment opportunity. Although brands such as Patek Philippe and Rolex will always retain most of their value, many high-end luxury watches lose a lot of their value once worn. Buy watches in a price range of up to € 10,000, as these can be quickly placed back on the market again.
Above all, buy with passion and always stay informed. The market for used luxury watches should be carefully studied, especially if higher investments are to be made. When parting with large sums of money you need to know what you are doing and dealing with.