Watches as an investment – ​​What you should consider

Watches accompany us all the time in our everyday lives. For some, the watch is associated with personal memories. Perhaps because they received it from a very special person. For others, it is a prestige object, an example of achievement that is worn with pride.

Sometimes watches are just a matter of taste. But the business of watches goes much further: nowadays watches are a different kind of investment. A very exclusive market has developed, especially in recent years, for some unique pieces and models. In times of low interest rates and inflation, many are looking for a new way to invest their hard-earned money safely and, if possible, even increase it.

But are watches a good and sensible investment?

The answer is: “It depends on various factors.”

If you want to get into investing and trading watches and be successful, there are a few things you should pay attention to. The market for trading watches has actually grown significantly in recent years. At auctions run by reputable houses in particular, more and more unique watches are being exhibited. There are more and more investors who want to get involved in this sector. As a result, prices are naturally rising, as is the potential sales value of your watch.

But you can't just sell any watch for a profit. The hype is always only about very specific and selected models. These can either be watches with very high quality workmanship or watches from well-known deceased watchmakers. They are often unique collector's models from luxury brands. Vintage models in particular, which have become collector's models over time due to their limited availability, have increased in price. Of course, this always also depends on the collector's value.

However, sometimes the simplest watches are sold at a high price because they have a particular history attached to them or because they were worn by a famous person: "This watch belonged to a former president" or "This one was worn by Whitney Houston herself". Of course, such a sale always requires an emotional connection with the watch to drive up the price.

The best known example of this is the 2017 auction, when Paul Newman's personal Daytona was sold for an incredible $17.75 million . But it is often difficult to predict which watches will increase in price in the future and is usually just speculation. Therefore, it is particularly advisable for beginners to focus on the physical value of the watches, because this remains constant. Aside from the value of the precious metals they contain, this also includes the expensive workmanship or the well-known manufacturer of the watch. Because this value remains constant, watches are comparatively less vulnerable to crises and hectic economic changes. This crisis-proofing also applies to collector's watches, as their availability will never increase. So-called panic sales are rare with vintage models. There are also certain classics among them. They receive their classification for their excellent watchmaking craftsmanship and their status as icons.

Firstly, there is the most well-known - the Rolex. For some models in particular, the waiting list is long. When it comes to vintage sports watches from this brand, it can be seen that all of these watches have retained their value very well and some have even increased in value. This makes these watches a pretty good long-term investment. The " Audemars Piquet royal oak " and the " Omega Speedmaster Professional " are also well-known examples.

However, finding out which new watches will be the future icons requires a lot of research. To do this, you have to familiarize yourself with the brand, its models, designs and technology. Famous watches from well-known brands are generally relatively safe and stable investments. In the worst case, you will not make a loss and in the best case, you will increase your investment.

But even though this type of investment is very exciting, you need a lot of patience. The value of watches does not simply increase overnight. Sometimes it takes many years. If you are convinced of the success of a particular watch, it often takes a long time before the wait pays off and the investment is worthwhile.

The most advisable thing is to buy a watch that you like so much that you can wear it yourself. This way you won't be wasting your money because it will be an asset anyway. This way you will have an investment that is also wearable.