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A good watch isn’t only practical and attractive, but it can also be a wise investment. Some people purchase a watch only to tell time. However, others seek to find a timepiece that’ll retain its value over time and not decrease in value.
Although most watches depreciate, certain luxury watches, such as Rolex, can retain their value over time. A select few luxury watch models can even appreciate as time goes on. Valuable watches are rarely available, unique in design, and produced by established and exclusive watchmakers.
There are a few factors to consider when searching for a watch that’ll hold its value. This article discusses these factors and examines the reasons some watches increase in value while some don’t. It also includes examples of luxury brands and lines likely to retain their value based on historical performance.
Why Do Some Watches Retain Their Value?
Some watches retain their value or increase in value due to their rarity, branding, genres, or aesthetics. Watches owned by celebrities typically have value, too. If you’re looking to own watches that continue to be valuable, look for brands with excellent heritage and tradition.
Let’s talk about the indicators that’ll determine whether or not a watch will retain its value.
Brands or Lines
Certain watchmakers have a reputation of excellence, and, therefore, their timepieces are more likely to appreciate. Experts agree that two of the top brands are undoubtedly Rolex and Patek Philippe, although several other brands are also known for exceptionally valuable watches.
Uniqueness or Rarity
Because of supply and demand, it makes sense that certain watches that are harder to obtain may hold their value or increase in value over time. Some watches that may hold their value include limited edition and anniversary watches produced to mark brand milestones or particular years.
A new or unusual watch style might capture the interest of collectors. In particular, a unique or unusual dial color for a specific brand will often retain its value better than a color that’s common to that brand or line.
Genres Or Classification
There are certain types of watches with a universal appeal, such as aviation, diver, or military watches, making them attractive to collectors and those looking to make an investment. Alarm watches and those with an intricate or sophisticated design are also popular.
An important question to ask is, “Who owned it?” Watches that were owned by celebrities may be more likely to hold their value. For example, Paul Newman’s Rolex Daytona famously sold for $17.5 million at a Phillips auction in 2017.
Change In Strategy
Brands that try something new in their watch designs may be a good choice when looking for an investment timepiece. Similarly, if a particular watch suddenly becomes more popular, this may be a good indicator that it’ll hold its value.
Smaller, More Compact Pieces
Currently, many millennials want to purchase smaller, more compact watches, as opposed to the large and chunky timepieces of the past, according to the Robb Report. Watchmakers are designing these smaller pieces to look like older, vintage watches, and they may retain their value in the future.
What Types of Watches Hold Their Value?
Certain luxury watches, such as Rolex and Tag Heuer, are more likely to retain their value than most ordinary watch brands. If you do your research and make a solid investment, your timepiece may even increase in value.
Experts say that an intelligent purchase today can even appreciate from up to 10–30%.
Now, we’ll talk about some of the following brands that are well-known as high-quality watches that are likely to hold or increase their value over time.
This Swiss watchmaker has a stellar reputation and is known as the top producer of luxury watches. They have an excellent heritage and recognition, and you can often see celebrities wearing them, increasing their appeal. Rolex was the first to produce a watch worn on Mt. Everest and the first to create a dive watch.
The Deepsea, Submariner, and Oyster Perpetual are the best models for their high resale value.
With a reputation for class and exclusivity and a similar heritage, recognition, and availability as Rolex, Patek Philippe is also one of the top watchmakers for value. Their materials, parts, and movements are all crafted in-house. These brands are known for their high resale value and unusual designs.
The Nautilus, Chronograph, and Aquanaut are some of their more exceptional watches.
Begun in 1860, Tag Heuer preserves vintage design while continually improving its function. The company is known for its excellent marketing strategy. The best models for investing include the Carerra and Monaco.
Founded in 1833, this brand incorporates beautiful designs and has commissioned movements for other watch brands. Their popular models run from classic to sports models. The best bets for holding their value include:
- Master Ultra-Thin
- Master Compressor
- Master Control
Another Swiss company, Omega, is less expensive than many other brands but has a good resale value because they now make their movements in-house. Popular models are the Seamaster Professional without a ceramic bezel, the Speedmaster, and the Constellation.
Older Breitling models in good condition tend to hold their value well. They are best for pilots, as they have an aviation slide rule. Celebrities are drawn to these watches, as they are timeless and classic.
Choose the Transocean, Navitimer, or the Chronomat for good value.
Should You Buy Luxury Watches?
You should buy luxury watches if you value quality watches. Luxury watches can enhance your style, make you look professional, and boost your confidence. Plus, they’re made to last. Of course, it’s best to buy a luxury watch only if your goal is to get one.
Luxury watches aren’t cheap, but on the bright side, they can be a good investment. However, you shouldn’t buy a luxury watch and expect it to appreciate.
Like any investment, you must research what is best to buy.
When you want to purchase a watch as an investment piece, you should know and research the factors that cause a watch’s value to increase. It’s also necessary to recognize which factors are currently trending in timepieces to determine which brand and model will be the right one for you.
Look at factors such as rarity, genre, brand, and celebrity, among others, to make the right choice. Tradition and heritage are essential qualities in an iconic watch to look for.
Be sure it’s a watch that matches your style and taste, as you’re the one who’ll be wearing it.
- Worthy: Luxury Watches That Hold Their Value
- Watch Guide: Top 5 Watch Brands That Will Hold Their Value
- Watch time: Which Watch Brands Are Most Likely to Increase in Value?
- Robb Report: How to Buy a Watch that Retains Its Investment Value
- The Loupe: 5 Reasons Why Some Watches Appreciate and Others Don’t