If you try to type on google “are watches a good investment reddit“,can definitely give you opinions, but I am not as sure about whether those are proper answers or not…
So, let’s digging into this new piece of blog post, we will tell you everything we know, everything.
Today I will tell you about this type of alternative investment, like investing in watches. This is a rather exotic type of investment, however, very interesting.
Investments in watches are investments that are made for decades. The threshold of entry is considerable here. If you are not ready to invest in the purchase of watches from 1 thousand evergreen American rubles – this type of investment is not for you. But starting from this amount, you can begin to select interesting models from brands such as Perrelet , Breitling , TAG Heuer and many other Swiss watch brands. Having bought such a chronometer, you have a good chance to sell it 10 times more expensive in a couple of decades. But not every model of such a watch will grow so well in price.
Models from these brands are highly valued, produced in small quantities and quickly go out of stock. That is, having bought such a watch today, in 10-15 years you will be almost the only seller of this model. If you take good care of them, wear them rarely (only for the most important events) , keep them in perfect condition, without scratches, chips, abrasions , and also keep all documents, a box , etc., then you can easily sell such a watch for 35 thousand dollars.
It turns out 14-22% per annum in dollars. But at the same time, being the owner of such watches, you acquire a high status , having which you can open any doors. I myself have never worn such an expensive watch, but they say that once you put on a watch worth several thousand dollars on your wrist, you will forever change your life and will never be the same. ?
A bit of history
Investing in watches is a very young type of investment , with a history of a little over 20 years.
It all started with the fact that the owner of the Antiquorum auction house Osvaldo Patrizzi and the consultant of the leading auction houses Massimo Barracca began buying rare watches that were gathering dust in the windows of New York stores, which were sold at that time for quite symbolic money. Back then, no one took them seriously and the shopkeepers laughed at them. But when interest in antique watches took off, it became clear that
“the one who laughs last laughs well.”
After all, what do we have today? And we have this.
The Patek Philippe Reference 1527 , a classic gold wristwatch made with 23 jewels, released in 1943, sold for 5.63 million evergreen American presidents at Christie’s in 2010.
Another example. Again Patek Philippe . A watch with an interesting history of origin and a complex movement – Patek Philippe Henry Graves Supercomplication.
The watch was born in 1932 thanks to a dispute between two American wealthy people. And they argued about which of them would have a cooler watch. More precisely, which of them will become the owner of the watch with the most complex movement in the world.
The winner was New York banker Henry Graves , who ordered an exclusive watch from Patek Philippe. It took the craftsmen about 5 years to produce this incredibly complex watch. They are made of 18-karat gold , consist of 900 parts and can fulfill 24 functions . The main feature of this watch was the starry sky, located on the dial, which looks exactly like the real starry sky, which can be seen from the window of Henry Graves’ house , located in New York . This watch was sold at Sotheby’s in 1999 for $ 11 million.They were bought by a man who wished to remain anonymous. Now the clock is in Switzerland , in the clock museum in Geneva :
Recipe for success
So what does it take to start successfully investing in buying a watch?
By and large, there are 2 options – one is simpler, but requires a lot of money, and the second option with a lower entry threshold, but involving a lot of time, in order to start to understand the clock. So, let’s consider both options in more detail.
1. Gold – Mechanics – Switzerland.
By buying a watch that meets these three characteristics, you are almost guaranteed to get a good increase in value in 10-15 years . Of course, if you keep them in perfect condition. If, moreover, it is a watch of an old eminent brand , and even a limited edition (Limited Edition) , then this is a 100% successful investment.
A gold Swiss mechanics Prices start at approximately from 2000 $ for “unpretentious» Tissot . For gold Swiss mechanics from the Limited Edition series, you will have to pay from 10,000 American rubles . For this money, for example, you can buy these Omega from the Museum Collection :
2. Learn to understand the clock.
You will have to study the history of the emergence and development of famous watch brands, closely monitor the release of new models and navigate modern trends. Investing a lot of money in the purchase of watches, you must understand why this watch will be of interest to the buyer in 10-20 years. In other words, they must have a high uniqueness (rare material, interesting story, limited edition, etc.) .
Safety and authenticity
Investing in watches, take care of the safety of the box, documents and everything that comes with the set . And, of course, take good care of your purchase – after all, even a small scratch can reduce the cost of the watch at times.
If you buy a new watch, then you need to buy it from the official representative of the brand, whose store addresses must be indicated on the manufacturer’s website. If you buy a watch from a pawnshop or from your hands, it is better to use the help of experts so as not to run into a fake. In addition, only those watches are suitable for investments, the condition of which experts assess as ideal. Restoration or repair , as well as scratches, chips and scrapes , reduce the cost of the chronometer at times.
Let’s look at brands that are guaranteed to be in high demand for decades to come. Of course, these are such famous brands as Patek Philippe , Vacheron Constantin , Rolex , Cartier , Audemars Piguet , Breguet , Zenith , Ulysse Nardin . These are the best watch brands in the world. Watches of these brands are worn by kings and presidents , owners of the largest corporations and oligarchs , monarchs and movie stars.… By the way, some of the Patek Philippe watch models are released only after an interview with the president of the company. Thus, the company shows that they are not indifferent to the fate of each piece they produce.
Such brands as IWC , Omega , Girard Perregaux , Tissot , Franck Muller , TAG Heuer , Jaeger LeCoultre , Breitling are considered “second echelon” . Investments in these watch brands are more democratic, because their prices start at about from 1000 $ . The watches of these models also have good growth potential, however, it is better to choose models produced in limited editions. Often these limited editions are timed to coincide with an event or date. How, for example, the clock Omega Cosmic , issued in 1966in honor of the landing of a man on the moon .
Investments in avant-garde watchmakers – MB&F , Urwerk , Greubel Forsey , Ladoire , MCT , Maitres du Temps – are also quite promising areas . Investment prospects can be assessed based on the results of auctions and exhibitions . However, it should be borne in mind that in the long run, simple, minimalistic beauty often outperforms pretentiousness. That is, buying a watch that is far from the classics by design and mechanism, you take on a greater risk, but at the same time the profitability of such an investment may be higher than when purchasing a classic.
In general, I recommend buying those watches that are more attractive to you personally, but at the same time clearly understanding how they will be of interest to collectors in 10-20 years.
Foundations of watches
In addition to direct investments in the purchase of watches, there are funds that are engaged in the purchase of rare watches all over the world. For example, “The Watch Fund” , the entry threshold to which starts at $ 250,000. By investing in this fund, the client of the fund receives a collection of watches. After a while, when the price of some items of the collection rises, the fund offers the investor to sell this item. If he agrees, the fund earns its 5% from it .
The main feature of the fund is that by investing in it, the client receives in his hands not just a piece of paper with investment confirmation (as is the case with most investment instruments) , but the real value – a unique watch , the value of which he can check at any time. This increases the credibility of the fund.
Let’s look at the example of the most expensive watches in the world, whether they are a good investment or whether this money can be spent elsewhere. At auction in 2017, a Rolex Daytona Paul Newman watch brought in an astronomical $ 17.7 million.
For many people, this seems to indicate that investing in a collectible watch is a smart strategy.
The watch belonged to Paul Newman himself for 15 years.
The value of these watches is largely due to the myths that surround them, as well as their rarity.
Simply put, there are no other watches that can boast of their pedigree.
Investing in a watch has more to do with the prestige and style that the watch provides to the individual – if viewed impartially, there is no reasonable reason why a Rolex was sold at that price.
In fact, only a very few watches will be doubled or even tripled in value.
The history behind the watch is what makes it so valuable. Possessing a rare watch is rewarded emotionally rather than monetary.
However, there are certain watch brands that can be expected to retain their value over the years.
Take the Graff Diamonds Hallucination watch, for example, which is valued at around $ 55 million.
The watch is made of a single piece of platinum and inlaid with colored diamonds weighing 110 in total.
However, remove these diamonds from the watch and sell them separately, and they will not bring the total selling price.
The absolute rarity of watches and their design are factors that contribute to their value.
It is incredibly difficult to gauge how valuable the watch will be in the future.
Therefore, the guiding principle should be that buying a watch should be done with the heart, not with the head. Buy a watch that expresses your individual style and taste.
If you want a watch that retains its value, then go for classic models with a proven track record.
The clock has long ceased to be just an object that shows the time. Today everyone has a mobile phone and a bunch of different gadgets that show the time. The time is now shown by almost every household appliance – from the microwave to the computer . Therefore, today a wristwatch is, first of all, an accessory that emphasizes the style and taste of its owner. And what kind of watch a person wears says a lot about him.
If you buy rare but inexpensive (1,000 – 2,000 $) watches every six months , then in 15 years you can start living comfortably, periodically selling copies of your collection. At the same time, you can continue to buy inexpensive watches to replenish the collection, with the expectation that they will rise in price in 10-20 years . Thus, the collection can be passed down from generation to generation. Imagine, starting now, you will not only provide yourself in old age, but also leave your grandchildren and great-grandchildren a collection of watches that will provide them with a comfortable life.
Today, many are chasing expensive gadgets, the prices of which are falling with the release of a new model, with an inch more screen than the previous one. Think for yourself – how much does the latest iPhone cost today ? How much will this model cost in a year or in 5 years ? But instead of a couple of such “apples” you can buy a real Swiss watch , which will grow in price from year to year.
A little higher, I wrote that a watch is an accessory . But still, it is even more.
After all, they absorb the energy of the person who wears them, feel the pulse, thoughts, mood. Besides, it is a certain “price tag” . After all, it is not for nothing that they say that a person values himself as much as he chooses a valuable watch for himself. Although, something tells me that this saying was invented by watch manufacturers to make it easier to sell their watches at exorbitant prices. ?
I wish you all the best! Let your financial capabilities allow you to get acquainted firsthand with this interesting type of investment and watch brands mentioned in this article!