Wrist watches as an investment option

Wristwatches and their value

If you take a look at the Swiss watch industry, you will see brands such as Rolex, Patek Philippe, Junghans and Omega. Watches that are good in price and have four or even five digits. Now, of course, the question is – are watches in this price category to be classified as an investment, similar to what is the case with real estate or not. Especially in times of low interest rates, many investors are looking for alternative investments compared to conventional investments such as real estate. For this reason, one or the other may wonder whether the classic wristwatch is a possible investment option. In the first place one should free oneself from the thought that the value of a watch is always related to the technical quality. Rather, the value of a watch is calculated on the basis of temporary demand. New watches that are produced on the basis of current trends are often not suitable for watch investments, but rather high-quality manufacturers such as Vacheron Constantin or Audemars Piguet should be considered, which are often produced in limited quantities and models have corresponding unique selling points. Above all, interested parties should focus on used models, as all new models include dealer margins of between 30 and 60 percent. But it is also important to choose an attractive brand – because brands that nobody knows and that are less in demand will not increase in value. As already mentioned, the most value-stable watch brands today are watch brands such as A. Lange & Söhne, IWC and Rolex or the manufacturers mentioned above.

Luxury watches as collector’s items

In general it is the same as with all collector’s items. Watches with small edition but strong demand are usually more interesting and the logic is simple. Everyone wants to have this one model of the wristwatch, but there are simply too few of them. This has a positive influence on the value of the watch. In order to get a feeling for price structures, the watch market and the value development of watch brands, it is important to spend time on watch exchanges, to inform yourself in auction houses and to use the knowledge of local and especially traditional watchmakers. By the way, the stories of traditional watchmakers are always very worth hearing.