Luxury Watch Investment Guide: Is it A Good Option?

A luxury watch investment can be something to look into if you’re looking for alternative investments. You’ll need to concentrate on particular models and brands that are well-known for their growth prospect.

This post will talk about the following:

• Is luxury watch a good investment?
• Luxury watch investment returns
• Luxury watch investment funds
• Which luxury watch is a good investment?
• Should I buy a luxury watch?
• Is now a good time to buy a luxury watch?
• How to invest in watches
• Pros and cons of buying a used Rolex 

Do remember that while it presents an opportunity, luxury watch investments can be quite risky amid high costs especially for maintenance, among other concerns.   

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).

This includes if you are looking for alternatives or a second opinion.

Some of the facts might change from the time of writing, and nothing written here is formal advice.

For updated guidance, please contact me.

Is luxury watch a good investment?

Luxury watch investment returns

Over the last decade, luxury watches have outperformed other passion investments like diamonds, vintage cars, and artwork, yielding compound annual returns of 9%, as per The Economic Times, citing a Knight Frank study.

The value of some luxury timepieces can increase considerably based on some reports. Say, acquiring a Patek Philippe watch could result in gains of more than 200%.

Pre-owned luxury watches are becoming more popular as alternative assets, which is expected to drive the luxury watch market’s substantial buildout.

Luxury watch investment funds

Individuals can purchase expensive watches with the chance for large returns through these funds, which are specialized investment vehicles.

They buy expensive watches with the combined funds of several investors, holding them for future growth.

Many luxury watch funds have a high minimum investment requirement, though.

Should I buy a luxury watch?

If you have a strong interest and are prepared to put in the time to keep them in good condition, a luxury watch investment might be a wise financial and personal choice.

A well-considered approach can make it a worthwhile investment, on top of other assets, of course. It’s always best to diversify.

Also, there are more affordable options in the market (lower entry point).

Is now a good time to buy a luxury watch?

The present market trends for high-end watches, the growing demand for pre-owned designs, and the historical value of some brands suggest that this could be a great time to purchase such asset.

However, keep in mind that the high costs and limited liquidity are huge deals that must be considered first before joining the fray.

How to invest in watches

• Recognize the market and investigate models and brands.
• Decide on an investment plan and diversify.
• Think about various designs and types of watches, including vintage, limited edition, and pre-owned.
• Verify purchases.
• Think about using investment funds.
• Invest in specialized insurance to safeguard your capital.

Which luxury watch is a good investment?

Below are some of the best luxury watches to think about investing in based on demand, brand prestige, and buildout potential. These are arranged in no particular order.

Top watches to invest in

1. Rolex Daytona. Vintage models of the Rolex Daytona are especially sought after. It has gained a lot of respect over the years due to its chronograph feature and racing origins. Given high buyer interest and limited supply, rare models can fetch up to more than $300,000 at auction. Resale values are solid too.
2. Patek Philippe Nautilus. This famous watch in great demand is known for having a high resale value. The brand limits production which boosts the watches’ appeal and rarity. The craftsmanship is also top notch. The most affordable price recorded for one of the designs for this watch was roughly $30K. It now fetches for double.
3. Audemars Piguet Royal Oak. Its quality and distinctive design have earned it recognition. The Jumbo model is especially popular with collectors. The modest production primarily contributes to the watch’s appreciation. Depending on the exact model, the price can start at $20K.
4. Omega Speedmaster. This watch, also dubbed the Moonwatch, has a rich history connected to space travel. Limited edition Omega watches tend to appreciate substantially; vintage models sell for over $100K.
5. Richard Mille RM UP-01 Ferrari. This incredibly thin watch, which costs almost $2 million, is among the priciest ever produced. Since there are only 150 pieces in the world, its scarcity guarantees high demand and price growth potential.
6. Rolex Submariner. A mainstay of the Rolex collection, the Submariner is a timeless dive watch that knits luxury and functionality. It is well-known for its designs and can resell for more than $100K based on the model.
7. Tudor Black Bay. This collection combines contemporary dependability with vintage style. Some Tudor models are starting to increase in value as the style becomes more popular. Prices normally start at about $3,500.
8. Cartier Santos. Among the first watches, the Santos blends style and practicality. Collectors may find vintage models to be especially valuable. The typical price sits between $6,000 and $12,000.
9. Panerai Luminor. Diving lovers prefer Panerai watches because of their luminescent dials and bold designs. Vintage and limited editions can gain substantial value. More complicated models can cost $10,000 or up, with prices starting at about $5,000.
10. Brietling Navitimer. The intricate dial and aviation functions of this pilot’s watch are popular. Because of their rarity, some limited editions have secured a lot of admiration.  New models are usually priced from around $4,500.

Pros and cons of buying a used Rolex 

Benefits of buying Rolex

• It is usually far less expensive than buying a brand-new one.
• There are often more models accessible on second-hand shops, like vintage or discontinued items that might not be available right now.
• Many pre-owned Rolex watches gain value over time, particularly rare or limited edition models.
• Used Rolex watches can frequently be purchased right away, unlike new models that might have lengthy wait times because of high demand.
• Your used Rolex may still have a high resale value if you choose the right model.

Disadvantages of Rolex watches

• The functionality and worth of used watches may be impacted by deterioration indicators.
• Fake watches are common in the used luxury watch market.
• Many pre-owned Rolex watches are not covered by warranties.
• Older timepieces might need maintenance or repairs, which could raise the total cost of your investment. Maintenance can be quite costly. 
• Luxury watch sales can be slower than those of liquid investments like stocks or bonds.

Pained by financial indecision? Want to invest with Adam?

Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.