Luxury watches can be a fantastic addition to your wardrobe, elevating every outfit to the next level. It can also (obviously) provide a quick means of telling the time. But perhaps the best feature of any luxury watch is its ability to retain its value – and even appreciate over time.
Luxury watches are increasingly being viewed as investment pieces, and a way to protect your wealth against inflation. Of course, you might find a greater rate of return in other places – like the stock market. But if you’d like to enjoy the other benefits conferred by a watch, and hold on to your money at the same time, the right wristwatch might be just the way to do it.
Factors Influencing Value Appreciation
Before you buy your next watch, there are a few things worth considering. Let’s look at the factors that determine the future value of your investment.
Brand reputation and heritage
Few buyers will want to invest in a watch from a name they don’t recognise or respect. Thus, watches from recognised brands like Rolex, Omega, and Patek Philippe will tend to hold their value much better than the alternatives.
Rarity and limited editions
The supply of a given item, along with the demand for it, will help to determine its value. Thus, rare watches that are highly prized by collectors will tend to fetch a higher price on the open market. This is where limited edition watches come into their own: their supply is artificially restricted, meaning that they’ll cost more when you come to sell.
Condition and originality
When your watch is in good condition, it will be more valuable. If it’s covered in nicks and scratches, and the mechanism doesn’t operate smoothly, then it will be less so.
Historical significance
Certain watches are highly regarded because of their association with a particular period in history, or the influence they’ve exerted over world events. For example, the Omega “RAF 6B/159” was issued to fighter pilots who defended Britain in the Second World War; thus, it will now fetch more than a thousand pounds.
Celebrity associations
Like any other accessory, a watch will be in higher demand if it’s been worn by a person that other buyers find appealing. For example, during the 1990s, James Bond started to wear an Omega Seamaster, as part of an official partnership.
Tips for Investing in Pre-Owned Watches
So, how can you get the best out of your investment in a second-hand watch? There are a few tips worth considering.
To begin with, you’ll want to understand the product you’re buying, and the features that define it. This will help you to avoid forgeries. For the same reason, you’ll want to favour reputable sellers, and avoid unregulated online marketplaces.
Since you can only wear one watch at a time, it’s worth looking at quality over quantity, and making sure that you invest a little bit of time and energy learning how to care for your watch.
Pre-owned watches can make a fantastic investment. Make sure that you understand what you’re buying, and that you pick out the cheaper options with the greatest potential for appreciation!
