Throughout the past couple of weeks, a number of important watch auctions by Christie’s, Phillips and Sotheby’s have yielded stellar results, proving that buying the right watch today could lead to nice profits tomorrow. However, what the auction houses never really talk about are the lots that don’t sell, and those that don’t sell for as much as expected – and they do exist. Just because you pay full price for a watch today does not mean that it will resell at the same price you paid for it. Sometimes, just like a car, it simply depreciates.
Experts agree that watches traditionally hold their value better than most other investments even in an economic slump, and they estimate that the right watch purchased today can appreciate in value as much as 10-30% in ensuing years. Generally, it takes a few decades for a watch to accrue value, though. Today, the most valuable watches on the re-sale market are vintage pieces made prior to 1980. Still, there are a host of reasons why some watches hold their value when others do not. And don’t be fooled, it isn’t just the precious-metal watches that sustain value; many a fine steel watch has captured six-digit figures at re-sale. In addition to the common-sense reasons such as constantly fluctuating global economies and geopolitical influences, there are five key reasons why a watch may appreciate in value over time.
1. Rarity
Rare watches will generally command more money at re-sale. This fact is the result of simple supply and demand. If only 10 models of a particular watch are made today, for instance, then when that watch comes up for resale, and if it is a high-demand watch, discerning collectors will be ready to pounce.
Watches made in limited editions are also coveted because of their scarcity. Additionally, if they are scarce now, just think of how much harder they will be to find in decades to come. (After all, not everyone will be re-selling his or her beloved limited-edition watch in years to come.) Recently, a white gold Rolex Cosmograph Daytona, Ref. 6265 “Unicorn,” watch with black dial and a bark-finished white gold bracelet sold at auction by Phillips for $5.9 million because it was believed to the only one known of its kind.
While many of us don’t have the wallet for the haute horology one-of-a-kind pieces on the market, those will definitely hold value. Similarly, anniversary watches that celebrate a significant milestone the brand or the style’s history are also considered good choices.
Rolex Cosmograph Daytona, Ref. 6265 “Unicorn,” watch with black dial white gold bracelet sold at auction by Phillips for $5.9 million.
2. Brands and Lines
There is no denying that certain brands have a particular cache and retain their value better than others. Most of those brands are the cream-of-the-crop luxury Swiss watch brands including Patek Philippe, Rolex, Audemars Piguet, Vacheron Constantin, Cartier, A. Lange & Sohne, Richard Mille and Greubel Forsey. Moreover, certain lines or collections from these particular brands are more sought-after than others. For instance, a Patek Philippe Calatrava may command a higher price than some of the brand’s other lines. Similarly, the Daytona is the most sought-after collection from Rolex.
Military and aviation watches such as this IWC Chronograph often hold their value.
3. Genres
Typically in the world of watch collecting, certain genres of watches are particularly sought after; the most popular “sects” being pilot or aviation watches, diver watches, military watches and auto-related watches (such as the Rolex Datyona). Additionally, alarm watches and highly complicated watches that are produced in smaller numbers are highly coveted.
4. Dials and Aesthetics
While every collector will tell you to buy what you love, there is no way to gauge resale value or value retention of a piece bought just for looks. Sometimes collectors buy styles they like but with a theme (think: all blue dials, all diver watches, or all gold watches) and can resell later at a premium as a complete collection. Additionally, new watches with a dial color that the brand rarely uses, or with a new or unusual motif or material can appreciate in value faster than watches with the more common dial color. A. Lange & Sohne, for instance, frequently releases dials with a white dial, so anA. Lange & Sohne watch with a rare blue or gray dial will be more coveted.
An Omega watch with co-branded Tiffany Dial that belonged to Elvis Presley sold for $1.8 million.
5. Celebrity
Certain watches are more valuable simply because of who owned them. Note: Unless you are truly the master of your destiny, you never know if you’re going to become famous one day, so this is not exactly an investment strategy– but it is worth noting that past owners will inflate a watch’s resale price tag.
For instance, Paul Newman’s Rolex Daytona fetched $17.5 million last year at Phillips auction. That watch’s incredible value was due in large part to the fact that it belonged to and was worn by the famed Paul Newman, who made the “Paul Newman Daytona” reference famous. Similarly, an Omega watch once owned by Elvis Presley and featuring a dial co-branded with Tiffany & Co., sold for $1.8 million – making it the most expensive Omega watch sold at auction.
The back of the Omega watch belonging to Elvis Presley.
FAQs
If the demand is higher than the supply, such as for a stainless steel Rolex sports model, the price will be higher on the second-hand market. Looking at the past prices, following the trends, and predicting future demand may result in you purchasing a watch that will increase in value over time.
What makes some watches more expensive than others? ›
Expensive Materials
Just like any luxury item, luxury watches must be of a certain build quality to command their hefty 'luxury' price tag. As such, brands and watchmakers cannot skimp on their materials. When they use precious metals, they can't use plating or capping; they have to use solid gold or platinum.
How do you tell if a watch will appreciate? ›
Here are the four crucial questions to ask yourself to determine if a particular watch style is a worthy investment.
- Does it have “style longevity”? ...
- Does the watch have all its original parts? ...
- Is this a pre-owned watch? ...
- Would the resale value be attractive to other shoppers?
The two most important and defining traits of luxury watch brands are exclusivity and a reputation of quality. People buy luxury products because of the brands, but they are prepared to pay more because of the idea that they get great value for money – both quality, but also prestige.
Which watch is most likely to appreciate in value? ›
Rolex and Patek Philippe are generally considered to be the top most collectable luxury watch brands, and the most likely to hold and even appreciate in value over time due to brand recognition, exclusivity, complications, popularity and craftsmanship.
What makes a Rolex appreciate? ›
Performance value is also important. The model or movement of your watch, whether it's a sports watch like the Rolex Submariner or Cosmograph Daytona that fetches a high price, or the Day-Date which displays both the date and day of the week – current trends play a huge role in value.
What makes a good watch better than a cheap watch? ›
Watch Quality Indicator #1 – Craftsmanship
So when it comes to determining the difference between and $50 watch and a $500 watch the first thing you want to look at is craftsmanship. Craftsmanship speaks to the time, effort, and attention to detail that the watchmaker put into creating this timepiece.
Why do watches hold so much value? ›
The materials a watch is made from is the only thing that can define its value outside of the watch world. If a watch is made from gold or platinum, it will always be worth its weight in these materials. Every other factor that goes into the value of a watch will have to do with what is popular and fashionable.
Are more expensive watches better? ›
Advantages Of Expensive Watches:
They are reliable watches and most feature advanced movement. They are made from quality materials and can last for many years. They look trendier, fancier, and will always make the right impression on any occasion.
Are watches a symbol of wealth? ›
Watches have often served as status symbols for many, many years, often being a key indicator of a person's taste levels and wealth.
A gold watch is an internationally recognized symbol, one that is emblematic of landmark accomplishments and personal success.
How does a watch represent you? ›
Regardless of the style of watch, people who wear watches are seen as dependable and reliable. To others, seeing a watch on someone's wrist says that that person is punctual and values not only his or her time but other people's time. After all, time is money, friend.
Is an expensive watch important? ›
You Will Stand Out From The Crowd. Wearing an expensive watch is one way to attract attention. It sets you apart from the crowd and can make you feel more like an individual, rather than part of a mass. The watch you wear is one of the most visible and well recognized symbols of your success.
What brand watches have the highest value? ›
The most expensive watches are made by some of the most expensive watch brands in the world, including Audemars Piguet, Blancpain, Jaeger LeCoultre, Breguet, Louis Moinet, Piaget, Roger Dubuis, Vacheron Constantin, A. Lange & Sohne and Patek Philippe.
How much is the cheapest Rolex? ›
What is the cheapest Rolex? As the market currently stands, the cheapest Rolex is the Oyster Perpetual with a starting price of $4,900. Available with a variety of dial colors, the Oyster Perpetual has no additional complications other than being able to tell the time but remains an elegant luxury watch.
Are old Rolexes valuable? ›
Values for Vintage Rolex Models Are on The Rise:
The President, Datejust, Daytona, Sea-Dweller, Submariner, Explorer, and GMT Master – including the Root Beer, Pepsi and co*ke models - are the most highly sought-after vintage Rolex models.
Are older Rolexes worth more? ›
Vintage Rolexes are almost a fail safe when it comes to Rolex watches to invest in. Their value often increases over time making them a good investment. This is because there is only a limited number of them available, making them more desirable to collectors and watch enthusiasts.
What kind of watch is best? ›
Samsung Galaxy Watch5 Pro. Samsung's Galaxy Watch5 Pro is a top-rated model, and the top pick for the best smartwatch for Android users, in our recent review. It has everything you'd expect—fitness tracking, blood pressure tracking, GPS and a long battery life—combined with an impact-proof, rugged design.
Can cheap watches be good? ›
Low Price Often Means Low Quality
However, the general rule is that cheap signifies poor quality in the world of watchmaking. So, how can you spot a low-quality timepiece? As premium materials are the foundation for a long-lasting product, a key indicator of a poor-quality timepiece is substandard materials.
Why watches are the best investment? ›
Scarcity
A sought-after, limited edition timepiece is usually in high demand on the secondary market. That's because watches (and other investment items) often appreciate in value when their demand outweighs the supply.
Wearing luxury watches can make people look more appealing and often gives them more respect during business meetings or when talking to a potential client. It can also be a good hobby for people who love collecting watches (Williams, 2022).
Why do luxury watches hold value? ›
This is due to brand recognition, exclusivity, popularity, quality, etc. The rest of the list contains the other usual suspects — watches that are the safest bets in terms of holding value, but not considered to be as sure things as Patek Philippe and Rolex.
Why are watches important? ›
You would turn your wrist and know how much time you have left. For such a forgetful person like me, a watch can sometimes be a lifesaver. Watches also allow you to know the time in special occasions and situations.
Why do Rolex cost so much? ›
Generally speaking, Rolex uses the 904L stainless steel in all of their collections. This ensures that all their timepieces are exquisite, tough, and long-lasting, and is a major factor why Rolex watches are all so expensive.
What is the difference between luxury watches and normal watches? ›
Workmanship and Skill
The first difference between luxury and ordinary watches lies in the level of skilled labor that goes into the making of luxury watches. Luxury watches are prepared by skilled watchmakers that are veterans of their field and remain dedicated to watchmaking their entire lives.
What watch does Bill Gates wear? ›
Watches of the Richest People in the World: Bill Gates Watch - Casio Duro Analog MDV106-1AV
What watch does Elon Musk wear? ›
Elon Musk – Richard Mille 029 (up to US$250,000)
Richard Mille is also a watch of choice for Tesla and SpaceX founder Elon Musk, per Superwatchman, besides his Carrera Calibre 1887 SpaceX Chronograph, a SpaceX collaboration with Tag Heuer back in 2012.
Why do successful people wear watches? ›
Wearing a watch shows you are a responsible and organised person. It also makes you appear reliable and marks you off as one who values his or her time. Even when you go for an interview or a meeting, these are the things that people will notice about you.
What do the 3 circles on a watch mean? ›
The three hands on a chronograph sub-dial are there to measure the time elapsed in seconds, minutes, and hours respectively. Once the chronograph is activated, the seconds' dial starts ticking, registering minutes and then hours if left on for long.
What is a billionaire watch? ›
Billionaire has reached fame as the watch coveted by all with a price tag surpassing $18 million. With only one in existence worldwide, the Billionaire is a unique piece adorned with Emerald-Cut Diamonds with an approximate carat weight of 260 carats.
Ankh. With origins in ancient Africa, the ankh is often referred to as the first cross. Adopted by Egyptian culture, the ankh came to be known as the key of life and represents eternal life.
What are the powers of a watch? ›
A watch movement (also known as a “calibre”) is the engine of a watch that acts as the powerhouse to make the watch and its functions operate. This internal mechanism moves the hands and powers any complications such as a chronograph, annual calendar or dual time zone.
Why do people love watches? ›
In today's society, a watch serves as a status symbol and a symbol of social class. Many people believe that wearing a designer wristwatch enhances their personality; as a result, they place a high value on the type, make, and brand of their wristwatch.
What is the definition of watch someone? ›
: to keep someone or something under close observation. : to observe as a spectator.
Why own a nice watch? ›
A luxury watch has top-quality timekeeping.
Beyond the aesthetic aspect there is also timekeeping which is the most important thing about a watch. There is definitely a difference in quality between low-prices watches and watches with a high price tag.
Does wearing a watch increase confidence? ›
Exudes Confidence
A watch is a part of your apparel, and when you wear a respectable one, you'll feel good about yourself. You'll also be less self-conscious when you have a high-quality wristwatch. The result is an increase in confidence and feeling of self-worth.
Do watches really appreciate in value? ›
Can watches appreciate in value? Watches absolutely can appreciate in value, especially if you choose a mechanical watch with a rather famous history. Ultra-luxury brands like Rolex, Patek Philippe, or Breitling tend to be the best for appreciation.
How long does it take for a watch to appreciate in value? ›
Experts agree that watches traditionally hold their value better than most other investments even in an economic slump, and they estimate that the right watch purchased today can appreciate in value as much as 10-30% in ensuing years. Generally, it takes a few decades for a watch to accrue value, though.
How long should an expensive watch last? ›
Quite simply, each luxury watch is designed to last a lifetime, as the culmination of vast expertise, care and passion, by some of the most prestigious watchmakers in the world. Here at Leonard Dews, we've been supplying watches from iconic brands for over 140 years.
Does Bulova hold its value? ›
Since the Bulova company produced a prolific number of affordable watches during the mid-20th century, most vintage Bulova watch values are usually not much over $50 depending on the watches' condition and the quality of the materials used to make them.
