Are Luxury Watches a Good Investment?

In the last decade, the world has largely forgotten about analog technology. Most have moved onto digital smartwatches, virtual art, and cloud-based media. However, one type of traditional good continues to captivate: Luxury watches.

Despite the transition to digital technology, the market for high-end wristwatches prevails. So that begs the question: Are luxury watches a good investment?

Curating a Luxury Collection

Much like vintage cars, prized oil paintings, and rare vinyl records, luxury watches can fetch a pretty penny on the secondhand market. Well-made timepieces have an impeccable quality, are expertly made to run better than most, and are usually part of the legacy of a brand with decades or centuries of experience.

Many investors treat these accessories like fine art. They trade luxury watches, watch the value increase, and turn them over for profit. Some will build an elegant collection they keep for decades. Either way, these timepieces often retain their value and provide a handsome return.

What Watch Brands are Best for Investing?

As with any other investment, performing extensive research is a must. The luxury watch market is pretty saturated these days, so you must do your due diligence to ensure you're making a strategic investment.

Those who trade luxury watches regularly will tell you the same thing: Stick to the best-known brands. Some good examples include:

• Rolex
• Omega
• TAG Heuer
• Cartier
• IWC
• Panerai
• Patek Philippe
• Bvlgari
• Audemars Piguet

These brands all have decades or centuries of acclaim. They're well-known for delivering premier products, and most produce their watches in Switzerland. You'll find that these brands often release limited quantities of their wristwatches, creating high value from the jump.

Factors That Influence Watch Value

In most cases, the value of your luxury watch will decline immediately after purchase before slowly appreciating over time. How much worth a timepiece holds or gains depends on many factors.

Typically, limited-edition and vintage models appreciate the most. Scarcity naturally drives up value, especially if the watch is from a legacy brand. Other potential variables include the condition of the accessory, the quality and source of the parts used, and the available features.

Investing in Luxury Watches

Luxury timepieces can be an excellent investment. Premium models can hold onto their value decades after the initial release. Do your research and learn as much as you can about a watch before diving in headfirst. Feel confident in your purchases, and you can build a high-value collection.

Read a similar article about day-date Rolex watches here at this page.