At first glance, you may not be among the most obvious elements of investing your money in it, but luxury watches can come with great returns, and sometimes their value doubles.
Those looking for an alternative investment in stocks or gold put their money in luxury goods, including watches. Nevertheless, caution is required, as only some species are valued at great value, and those who are not familiar with the market may end up wasting their money.
Stephen Moser, the owner of the auction house Dr. Card, auctions in Mannheim, warns that many hours on the market will not be able to maintain their current value.
"One can only offer appreciation, but between 70 and 80% of watches, even high-quality watches from Switzerland and Glashot, are not suitable as capital investments," says writer Michael Bruckner, who has written extensively on watches and other luxury goods.
“The rest, which is from 20% to 30% of hours, are specific brands and models that have performed well in recent years,” he explains.
"These few brands and models are considered to be excellent," Moser added. On the stock exchange, this term refers to preferred stocks with high returns. However, this does not necessarily protect buyers from entering into weak investments. ”
These watches are not bought cheaply - “In other words, you get as much as you pay”, and the price of the most expensive model can reach the level of the purchase price of an apartment.
But it is not easy to purchase these watches from regular watch stores. "These models are hard to come by, and they are often sold in advance for a long time," says Joachim Dunkelman, managing director of the Federal Jewelry Association in Germany.
It will end up in outlets like eBay at a much higher price. There are models that are traded on the market at prices much higher than those listed on OEMs, says Dunkelman.
However, the process is not particularly clear. "Even professionals cannot predict whether or not the watch will turn into a great value," Moser says. For watches to be a good investment, you need - in the truest sense of the word - time. It often takes years or even decades before the watch becomes an item that collectors need. Whether the old watch - or turning it into - a watch of value first of all, depends on how much interest it takes in. Key factors include whether or not they have received maintenance, and whether they are still in their original condition. According to Mosser, the clocks resemble vintage cars: "The more they are original - that is, their consumption is lower - the better they will maintain a higher market value." Watches with other additional features, such as those that allow date control, as well as the ability to reformat, stop, and start again, are especially popular among watch collectors. "In principle, the more artistic the watch is, the more valuable it is," says Bruckner. The value of each luxury watch - new or old - depends on its appearance. Although the watch is a piece of jewelery, those that do not contain any scratches are suitable as investments. "If you want to take this seriously and buy watches exclusively as an investment, you should not use them at all," says Bruckner.
"The more original it is, and the less it is consumed, the better it will be kept in the market."
"If you want to buy watches exclusively as an investment, you should not use them at all."