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  • Writer's pictureShreyan Shrimali

Watch Your Wealth Grow: The Lucrative Watch Investments World

Updated: Jan 21

When we think of investment, the first things that come to our mind are stocks, real estate, or mutual funds, but there is one more investment that gives more return per year as compared to other assets: luxury watches.

Companies like Rolex, which have very high demand but low supply, have gained a lot of popularity in the second-hand watch market in recent years. Watches of these companies go up sometimes as soon as you leave the shop. Some people have started investing in luxury watches as they sometimes perform better than stocks and real estate. Before investing, it is essential to do proper research as sometimes the price doesn’t goes up right away or never go up. Hence, it is a very high-risk investment, but as people say, ‘Higher the risk, higher the profit’.

It has become a hobby for many people as its value is appreciated over time, and people love wearing it on their wrists. It is becoming a profitable asset as people can carry it with them or keep it in a safe house. Brands like Patek Philippe and Rolex can appreciate 69% over a decade. At the same time, you can use it too.

Sometimes, it can give you shock as well, showing how much these simple watches can be worth if you can keep them in good condition. Check out this video to know more about it.

Many brands are emerging now; one of my favourites is Jacob & Co. This brand started to gain fame around 2002 with models like Casino Tourbillon. This watch has features like the wheel-head, which encircles the dial and resembles a roulette table. It spins freely to land on a "random" number when engaged, the reason being a ceramic ball that moves between two sapphire plates.

As per Grand View Research, the global luxury watch market is valued at USD 42.21 billion, and it is expected to grow at 5% by 2030, with the largest market share in Asia Pacific countries.

Recently, the COVID-19 pandemic hit the world, and its impact was huge, but if we look at the watch market, it only fell by around 10% as compared to traditional investments like the S&P 500, which fell by nearly 19%. This vast gap itself explains how this watch investment is economy crisis-proof, but that doesn’t mean all luxury watches are great for investment.

You don’t have to invest millions of dollars to buy a watch, which is just 3 in the world made by Rolex for Drake; you can start with as little as 1,000 USD. (Check his collection here)

There are many things which a person should take care of before investing, starting with brand selection. It is crucial to select the good one that will surely be best for investing, but not all models are suitable. Usually, models which have a great legacy attached to them or are limited editions gain prices over time. After that, it is essential to look for places to buy and sell watches, which can be done through good market research. Last but not least is storage. It is necessary to store this valuable asset in a safe place. These are some of these tips to help you start a luxury watch investment.

When buying and selling watches, Resale value and Auction play a significant role; they help buyers access scarce exclusive pieces with proper verification, which is very important in this industry. Investment is better if it has liquidity, which is what these markets provide.

In conclusion, buying luxury timepieces demands careful planning and knowledge. It is crucial to understand that it is not just for the wealthy, though. Although it might be a high-end investment, anyone with a thorough knowledge of the market and a love for timepieces can take part and possibly profit from the chances it presents. It is essential to approach watch investment strategically, carefully taking into account elements like brand reputation, model rarity, market trends, and authentication procedures. People from all walks of life can participate in luxury watch investment and benefit from its benefits with careful research and an intelligent move.

Disclaimer: The advice provided below is not intended to be financial. Before making any investing decisions, careful study and professional advice are essential.

If you found this blog interesting and want to explore further into luxury watch investments, here are some recommended channels that I follow:

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