You’ve probably heard that if you’ve invested in the stock market in 2017, you could have doubled your money in 2022. Doubling your investment in the stock market is great, but what if you knew that the S&P 500 Index, one of the best stock market indices, only ranks 16th when compared with other investment opportunities?
We gathered the data on the market performance of a range of asset classes including stocks, crypto, precious metals, art, and luxury items including watches to find out which got the best ROI over the last five years. Here are the findings.
Luxury Watches Yield Double The ROI Of The Stock Market
Comparing the performance of the secondary luxury watch market to stocks, we find that Patek Philippe watches outperformed two of the most popular stock market indices - the S&P 500 and the FTSE 100.
It is significant to note that this is not a brand-specific phenomenon, since the overall watch market follows a similar trend. However, this does not apply to all luxury watch brands. Rolex, arguably the most popular watch brand, performed roughly the same as the S&P 500, but it still outperformed the FTSE 100 Index.
It’s clear that in the last five years luxury watches were not just a fashionable choice - they were also a strong investment decision.
Real Estate: Great To Live In, But Not The Best Investment
When comparing the watch market with the UK house price index (which calculates the monthly average house price change) the contest is not even close.
Real estate is a great way to preserve your investment and hedge against inflation, but 30% ROI in 5 years is not much to write home about. Especially when you compare it to the 207% that you could have made investing in Patek Philippe.
Precious Metals Are A Great Investment…When They’re Used To Make Watches
Gold and silver are great examples of assets that people use to hedge against inflation, but they do not yield the best ROI. In the past five years, the overall luxury watch market yielded four times the ROI of gold and twelve times as much as silver.
The upward trajectory of luxury watches over time compared to the somewhat stagnant (or even negative) ROI that you see with silver and gold is another indicator that precious metals are worth more when used to create even more precious watches.
Crypto Is One Of The Few Assets With A Higher ROI Than Watches
If you invested £1,000 in Etherium in 2017, you could afford a high-end luxury yacht in 2022. Cryptocurrencies like Bitcoin and Etherium have yielded enormous ROIs of 3512% and 7366% respectively in the past five years. This trumps the 93% you could have made by investing in a Rolex.
As ever, this is not necessarily an indication of the future of these assets. Cryptocurrency blew up in 2017 and had a resurgence in 2020, but luxury watches have been around for much longer. It will be interesting to see what happens in the years to come to both of these asset classes.
Watches Are The Best Fashion Items To Invest In
In the past 5 years, you would have been better off investing in carefully selected designer bags or clothing collabs than in real estate or the stock market. We analysed the performance of the iconic Louis Vuitton speedy bag which yielded a surprising 58% over the last five years. There was a major dip in price in 2020, but apart from that, it's been a steady tick upwards.
We also analysed the performance of the iconic collaborations between Louis Vuitton and Supreme to release the Monogram Red Belt, which yielded 61% over the last five years, and the limited edition Nike MAG Back to the Future (2016) Sneaker which has skyrocketed in value yielding 207% in the last five years.
Although these items performed well, the clothing industry is very hit and miss. Fashion investments are generally safer in the luxury watch market which is less volatile than other luxury fashion items.
Luxury Watches Speed Past Supercars With Ease
We analysed the performance of three of the most sought after supercars and they all have a similar performance. The Lamborghini Aventador and Bentley Flying Spur both had an ROI of 6% over the five year period, while the Ferrari 488 actually had a negative ROI of -7%.
Comparing this to the 200%+ of Patek Philipe, it's easy to see which would be the smarter investment option. It is clear that supercars are a luxury item to be enjoyed, but not for generating wealth. If you want something that you can enjoy and will grow in value, luxury watches are the more sage investment.
Art Is The Best Investment, If You Time It Just Right
Unlike luxury watches, which can be bought and sold quite frequently, the art market is relatively static. Most art pieces are bought once and usually to be kept as a collectible. This was the case for both the Nu Couché and the world's most expensive painting, the Salvator Mundi. Both were sold in 2018 yielding an ROI of 122% and 253% respectively.
Collectible cards make for an interesting comparison. Looking at one of the most sought after cards in the world, The PSA10 Charizard 1st Edition Holo, most of the ROI was made in 2020-2021 when it was sold for $400,000 and was originally bought for $36,000 yielding an ROI of 1000% for that year and an ROI of 1563% for the last 5 years.
The ultimate art piece in terms of ROI is not even a physical piece, but rather an NFT. NFT stands for Non-fungible Token which is a fancy way of saying digital art with a certificate of authenticity. This specific NFT is part of the CryptoPunks collection and it was sold for £23,700,000 in 2021, while the owner had originally bought it for under $2000. This is an ROI of 1,439,754%. Unlike CryptoPunks, most NFT projects significantly decline in value.
When we compare art to the best watch in terms of ROI, The Patek Philippe 57111A, we find that there is a steady increase which means that it's a much safer investment option compared to the volatile nature of art investments. The Patek Philippe 57111A has yielded an ROI of 788% over the past five years which means it ranks 5th best on our overall list.
Is Rolex The Best Luxury Watch Investment?
Rolex might be the most famous luxury watch brand, but it is not the highest-yielding investment. The number one spot goes to Patek Philippe with an ROI of 207% over the past five years. Rolex, which yielded 93% over the past five years, does not even take second place. That honour goes to Audemars Piguet, which yielded 158% on average. Vacheron Constantin comes in at 4th place with an ROI of 55% and A.Lange & Söhne is 5th with an ROI of 18% over the past five years.
Expert Insight: Why is Rolex not the top performing watch brand?
“I believe the main reason is the limited production numbers. Rolex produces approximately 2 million watches per year, where Patek produces around 55,000 watches, so there are a lot fewer Patek Philippe watches on the market than Rolex watches."
"Along with the fact that all Rolex models are in demand in comparison with Patek who really only have 2 desirable models, the Nautilus and the Aquanaut.”
- Nicholas Hickey, Managing Director, Luxe Watches
Timeless Timepieces: The Best-Performing Individual Watches
What happens if you compare the most popular individual watches for each brand in the second-hand luxury watch market?
It’s no surprise that Rolex, the most famous luxury watch brand, makes the list. The surprise is that the Rolex 116500 is only the 4th best yielding watch over the past 5 years.
The Patek Philippe 57111A yielded a whopping 788% over the past few years and is showing no signs of slowing down.
Our analysis showed that all of these watches had a positive ROI and it also showed that all the watches had an upward trajectory going into 2022. The A. Lange & Söhne 404.305 was the only watch on our list that had a negative ROI, but going into 2022 it sits at a positive 1.89% ROI.
Expert Insight: Why are these watch models performing so well in the second hand market?
“The Rolex Daytona (Rolex 116500) is very often the first watch that comes to mind when people think of the brand Rolex. In the world of high end watches it's actually not priced ridiculously compared to some other brands. The Daytona has always felt like the jewel of the Rolex Sports model range, for this reason, waitlists are extremely long. This difficulty to purchase creates a large demand from people who would prefer an instant purchase."
"The Nautilus (Patek Philippe 5711) is a perfect example of the ultra premium sports watch market, again incredibly exclusive and near impossible to purchase at retail. This is definitely the first stop for anyone looking to make a statement!”
- Nicholas Hickey, Managing Director, Luxe Watches
Not All Luxury Watches Are Created Equal
Analysis shows that not every luxury watch brand is great for investing. Although all brands saw an uplift in 2021, some brands yielded a very modest return compared to their counterparts.
Hublot demonstrated an 8% ROI which is 12X less than Rolex and 26X less than Patek Philippe. We also see modest ROIs between 5% to 8% for Girard-Perregaux, BVLGARI, Piaget and H. Moser & Cie. This is higher than other asset classes, such as real estate, but still much lower than alternative watch brands in the market.
Expert Insight: Why are these watch brands not performing as well as other luxury watch brands?
“Quite simply mass production means Hublot does not perform so well. Hublot is owned by LVMH, so I believe they like volume over anything which can have a negative impact on the brand."
"Girard-Perregaux on the other hand traditionally never had a desirable model, but that has now changed. The Laureato collection is causing a stir in the industry with a great design along with a fair retail/reseller price backed with a strong brand history.”
- Nicholas Hickey, Managing Director, Luxe Watches
What’s The Best Performing Asset Class In The Last 5 Years?
Disclaimer: This article is not financial advice. You should do your own thorough research before making any investment. If in doubt, consult a professional financial advisor.
Methodology
We collected the ROI of each of these asset classes and calculated the year on year ROI from March 2017 to March 2022. Here is where we got the data:
We used WatchCharts for the individual watches and watch brand indices.
- The WatchCharts Market Index is an indicator of financial trends in the second hand watch market. It is comprised of 30 popular watch models with high trade activity. The index shows the average market price of these 30 watches over time.
- Each watch brand index is based on its performance in the secondhand market. For example, the Rolex brand index is an indicator of the Rolex's financial performance in the second hand watch market. It is comprised of 30 popular Rolex models with high trade activity, listed below. The index shows the average market price of these 30 watches over time.
- Individual watch prices are also based on data from the second hand watch market. We chose the most popular watches for each brand based on the WatchCharts popularity index.
The S&P 500 Index and FTSE 100 data came from Market Watch.
The UK House Price Index came from the ONS 2022 report.
The Gold and Silver historical prices from Macrotrends.
Bitcoin and Ethereum historical prices from CoinDesk.
The luxury clothing data all came from historical sales on Stock X.
Supercar historical prices came from CarGurus.
The Salvator Mundi and Nu Couché price over time from several news articles confirming the sale prices.
The Charizard 1st Edition Holo data came from pokemonprice.com which tracks sales of the card on the secondhand market.
The CryptoPunk historical prices came from Larva Labs which had a log of the blockchain transaction history for the NFT.
FAQs
The best watch brands for investment are Rolex, Patek Philippe, and Audemars Piguet as they are prestigious, exclusive, high-quality brands. Watches by these brands often hold their value or appreciate in value over time. Their ongoing popularity, limited editions, and scarcity drive increasing prices.
What is the best luxury watch to invest in? ›
The best watch brands for investment are Rolex, Patek Philippe, and Audemars Piguet as they are prestigious, exclusive, high-quality brands. Watches by these brands often hold their value or appreciate in value over time. Their ongoing popularity, limited editions, and scarcity drive increasing prices.
What watches appreciate most in value? ›
Rolex watches generally appreciate in value over the years, making them a worthwhile investment. If you're buying a pre-owned Rolex watch, make sure to check that it is an authentic Rolex timepiece.
What watches do the ultra rich wear? ›
Watches of the Richest People in the World: Elon Musk
- Elon Musk Watch - Omega Seamaster Aqua Terra 150M. ...
- Elon Musk Watch - Richard Mille 029. ...
- Elon Musk Watch - Rolex Datejust 16200. ...
- Jeff Bezos Watch - Ulysse Nardin Dual Time 3343-126-7/91. ...
- Jeff Bezos Watch - Omega Speedmaster Professional “Moonwatch” Chronograph 311.30.
A Portable Asset: A luxury watch is both a good investment and a portable asset. You can carry this collectible asset with you wherever you go or store it in any safe place.
Which luxury brand is an investment? ›
The best luxury brands to invest in are Dior, Hermes, Chanel, and Louis Vuitton. They normally hold their value the best and are easier to resell. Some items even go up in value if you choose the right classic piece.
What is the best Rolex to buy for investment? ›
Rolex GMT Master and Rolex GMT Master II are the best Rolex watches for investment. They are practical and hardwearing watches with the prestigious Rolex branding. You can get a GMT Master at a few thousand pounds, but rarer models can go for tens or hundreds of thousands.
What are the big three luxury watch brands? ›
What Brands Make Up The Holy Trinity of Watches? Also known as the 'Big Three', the holy trinity of watches includes Audemars Piguet, Patek Philippe, and Vacheron Constantin.
Does TAG Heuer hold its value? ›
Do Tag Heuer Watches Hold Their Value? Luxury watches like Tag Heuer are more likely to hold their value compared to other watch brands. They age well over many years due to the quality and valuable materials in the watch, as well as the brand name itself.
What watch does Bill Gates wear? ›
For someone who can buy any watch in the world, you probably wouldn't expect a watch costing a few dollars. But Bill Gates likes to wear this watch. The Casio Duro Marlin MDV-106 got famous because of him and stayed in the light for many years.
Warren Buffett is a big fan of Rolex and has been wearing his Rolex Day-Date for many years. Buffett was once asked what he thought of Rolex as a company and if he would ever be interested in purchasing Rolex. Buffett responded by saying: "Luxury watchmakers such as Geneva-based Rolex are great companies.
What watch does Putin wear? ›
Vladimir Putin with FP Journe Chronometre Bleu 1304CS
He also owns a vintage Patek Philippe Perpetual Calendar 5039J in 18k yellow gold with a hobnail bezel. The market price is around $38,000.
How do you know what watches will increase in value? ›
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?
Falling prices for the most desired models
After an unprecedented surge in 2021 and into the first three months of 2022, prices for the most desired Rolex, Patek Philippe and Audemars Piguet models have been falling sharply.
Are Breitling watches good investments? ›
Are Breitling watches good watches that will hold their value? The short answer is “yes,” but there are several reasons why this is the case. There is undoubtedly a direct correlation between the perceived value of a brand, brand recognition, and the actual resale price of the watch.
What is the fastest growing luxury brand? ›
Fastest growing luxury brands worldwide between 2018 and 2021, based on CAGR
| Characteristic | Compound annual growth rate |
|---|
| LVMH Moët Hennessy-Louis Vuitton SE | 17.5% |
| Canada Goose Holdings Inc. | 15.2% |
| Hermès International SCA | 14.6% |
| Audemars Piguet & Cie | 13.5% |
6 more rowsDec 12, 2022
Gucci is the hottest brand online, again. Its share of search interest continues to decline, however (from 17.5% in 2020 to 15.2% in 2021 and now 14.8% in 2022).
...
The top 15 most popular luxury brands online.
| Rank | Brand | Industry |
|---|
| 1 | Gucci | Fashion |
| 2 | Dior | Fashion |
| 3 | Chanel | Fashion |
| 4 | Louis Vuitton | Fashion |
11 more rowsMar 31, 2023
Many countries have seen an increase in spending on luxury items, but one country now stands out as the world's biggest spender on luxury goods per capita: South Korea. According to analysts from Morgan Stanley, South Korea's spend on luxury goods saw a 24% increase in 2022 to €15.4 billion or about €300 per capita.
What is the waitlist for Rolex 2023? ›
So, the Rolex Daytona waitlist 2023 is likely to be at least 5 years if you're able to buy a Rolex Daytona. We've seen Covid pass through, World Cups end and start, markets rise and fall almost simultaneously and all within the time it takes to get your hands on a Rolex Daytona.
Which Rolex holds more value? ›
Which Rolex Holds Their Value Best? The Submariner, first introduced in 1953, is best known for holding value or even increasing in value over time.
On average between all the collections, Rolex raised their prices in 2023 by 3.45% or $733 per reference. Two tone and sold gold references experienced the largest price increases while stainless steel references saw a slight increase.
What is the king of all watches? ›
The logo of the Swiss watchmaker Rolex is a five-pronged crown, which couldn't be more apt given that Rolex is the true king of watches. Famous in all corners of the globe and a benchmark of quality, ask anyone which is the best luxury watch brand and you will get the same answer: Rolex.
Is Omega better than Tudor? ›
Which Is Better, Tudor or Omega? Between the two, Omega is the higher-end and more famous brand, but both produce quality timepieces. Tudor's movements aren't as complex as Omega's, but they do offer classic, understated styles that some might prefer.
What are the Big Four watch brands? ›
Despite the fact there are hundreds of brands manufacturing timepieces with incredible levels of accuracy and finishing, just four dominate today's desirability rankings: Rolex, Patek Philippe, Audemars Piguet and Richard Mille.
What is the most known luxury watch? ›
The constant top brand when it comes to luxury timepieces is Rolex. With a name recall that resonates throughout the world, Rolex is the epitome of luxury and a successful marketing strategy. Rolex holds a quarter of the total global luxury market share.
Why is Rolex not in the Big 3? ›
Basically, since the holy trinity brands were founded, they have focused on fine watchmaking and complex mechanics. Rolex has always had a different focus and has only in the last 5 decades or so become more and more synonymous with luxury and prestige.
What is the most known luxury watch brand? ›
While Rolex Watches is the most well-known luxury Swiss watchmaker in existence today, it was actually their desire to create highly reliable, extremely functional tool watches that put them on the map. It was Rolex that created the first water resistant watch in 1926.
Is TAG Heuer under Rolex? ›
TAG Heuer and Rolex are two very different brands who produce very different timepieces. However, even with their unique approaches to watchmaking, they may have more in common than you think.
Which is better TAG Heuer or Tissot? ›
Tissot has versatility in its catalog, while Tag Heuer is more accurate and has higher water resistance. Racing car lovers appreciate both brands. Tissot holds the crown for offering a wide range of timepiece styles and models at relatively affordable costs. However, Tag Heuer surpasses Tissot in most features.
Which is more expensive Omega or TAG Heuer? ›
Yes. Omega watches tend to be more expensive than TAG Heuer because they are a more luxurious brand. In addition to being a more dominant brand in the luxury timepiece industry, , OMEGA watches are highly popular and come with a respected history.
A specially designed version of the Omega Speedmaster Moonwatch was given to Jeff Bezos and other suborbital space travel team members for their historic Blue Origin NS-16 space mission.
What watch does President Biden wear? ›
In the past, Biden has been spotted wearing an Omega Seamaster Professional 300M and an Omega Speedmaster Professional Moonwatch. Perhaps the president could try Omega's new Gold MoonSwatch next?
What watch does Obama use? ›
Barack Obama's Rolex Cellini
It's unclear how long Obama has owned the Cellini, though many have seen him owning it before his bid for presidency, and post presidency, it seems to be his go-to watch. It's a modest dress watch at 39mm in white gold with a white dial and contrasting indices.
What watch does Oprah wear? ›
Ebel 1911 stainless Steel Quartz Wristwatch owned and worn by Oprah Winfrey
| Case Dimensions | Diameter: 1.46 in (37 mm) |
|---|
| Date of Manufacture | 2000 |
| Condition | Excellent. In original box. Repaired. |
| Seller Location | Chicago, IL |
| Reference Number | 1stDibs: LU941123662 |
2 more rowsDonald Trump's Patek Philippe Ellipse
The Patek Philippe Golden Ellipse. The small yellow gold watch almost wears more like jewelry in its 32mm case with beaded bracelet. Trump's model in particular has a nice blue dial. It's a classy watch designed around dressing up.
What watch does Johnny Depp wear? ›
Johnny Depp's Rolex Submariner Watch.
What watch does Brad Pitt wear? ›
Brad Pitt Watch - Patek Philippe Nautilus 5711
The Oscar winner also has the classic stainless steel Patek Philippe Nautilus 5711. The 40mm watch with a graduated blue dial really looks great on his wrist. The current market price (March 2023) is around $150,000.
What watch does Leonardo Dicaprio wear? ›
He's happier in a wrinkly T-shirt and cargo shorts, blasting through Manhattan on a Citibike. However, perhaps there is one watch with the power to convert him: the Patek Philippe Nautilus with a Tiffany-blue dial. Most people interested in watches probably know the story by now.
What watch does Keanu Reeves wear? ›
Keanu Reeves Watches - Patravi Travel Tech II GMT chronograph. Keanu Reeves is a well-known watch enthusiast who has been spotted wearing a variety of luxury timepieces, including the Carl F. Bucherer Patravi Travel Tech II GMT chronograph.
How much is the cheapest Rolex? ›
How much is the cheapest Rolex? The cheapest Rolex for women is the Oyster Perpetual Reference 276200 that costs $5,300 MSRP. For the men is the Oyster Perpetual Reference 126000 at $5,800 MSRP.
Breitling watches are a luxury item & as such, they come with hefty price tags. However, Breitling watches hold their value well & can be expected to increase over time. They also last for years & years (some models have been around for decades).
Do hublots hold their value? ›
They usually don't hold the same resale value as Rolex watches which is the king when it comes to average resale value on the pre-owned marketplace. They don't produce as many super high-priced bling models as Rolex (if that's what you're looking for) but have a great selection of iced-out dial models fit for a royal.
Which luxury watches increase in value the most? ›
Rolex, Patek Philippe, Breitling, and Audemars Piguet retain their value the most, followed by Omega, Oris, Tissot, and Tudor. These brands have prestige and popularity and are crafted out of high-quality materials and parts. Due to limited models and references, the scarcity of these timepieces increases prices.
Which is the best market for luxury watches? ›
Globally, China has become one of the most important markets for luxury watches in recent years due to its growing population of high-net-worth individuals.
Will Cartier watches go up in value? ›
With history as our guide, Cartier styles pass the test of time and a watch bought today may gain value over the long term as it becomes more desired and rare. However, it's impossible to predict what any market will be in two years, five years, or ten years.
Is Breitling better than tag? ›
Most well-versed watch collectors would say that Breitling is a more respected and prestigious watchmaker and hold Breitling as a brand, to a higher standard than TAG Heuer. There are always those collectors that would swear by Breitling but still own a TAG Monaco or a Carrera Heuer 01 in his or her collection.
Is Cartier an investment watch? ›
Cartier watches are essentially a commodity - they do not merely hold their worth; they increase in value, much like gold or silver. Cartier watches are resold at a premium price at auction, due to high demand and rarity.
What is the most sold luxury watch brand? ›
Rolex reigns supreme.
Next up is Omega, which retained its No. 2 spot, followed by Patek Philippe and Audemars Piguet. Retailer Watches of Switzerland recently placed Rolex, Patek Philippe, and Audemars Piguet watches in its “super high demand” category.
Is Bulova considered a luxury watch? ›
Bulova is an American luxury watch company and was founded in 1875. Since 2007 it is owned by Citizen. Bulova became successful in the USA because of its visual appeal and technological achievements.
Is Citizen considered a luxury watch? ›
Today, Citizen is a world-renowned luxury watch brand and owns Bulova, an American watchmaker.
- Patek Philippe Worldtimer Guilloché Ref. 2523/1: $5.5 million. ...
- Patek Philippe Platinum World Time Ref. 1415: $5.8 million. ...
- Patek Philippe Yellow Gold Calibre 89: $6 million. ...
- Rolex Daytona Unicorn Ref. 6265: $6.1 million. ...
- Patek Philippe Titanium Ref. ...
- Patek Philippe Gold Chronograph Ref. 1527: $6.8 million.
The Watch World Quakes. The privately owned Swiss brand dominates the market by virtually every measure.
Is Movado considered a luxury watch? ›
Movado primarily competes in the “accessible luxury” segment of the watch market. A majority of their timepieces range from $500 to $2,500.
What brand is better than Bulova? ›
Seiko provides traditional, stylish, functional, and innovative timepieces that all come from its revolutionary mindset. Bulova has unique and loud designs, and the brand stands out for its style and accuracy. However, Seiko's sleek and classy design earns more respect than any other in the competitive market.
Does Rolex own Bulova? ›
Bulova has its origins in American watchmaking dating all the way back to 1875. However today the brand is owned by Citizen Watch.
Is Seiko or Citizen better? ›
If you don't mind quartz watches and the extra accuracy the tech brings, Citizen watches might be your best bet. Alternatively, if you prefer the tradition of mechanical watches, with a cost-friendly price, then Seiko watches should be your choice! Either way, it'll be a win.
Is Citizen owned by Bulova? ›
On January 10, 2008, Citizen bought the Bulova Watch Company for $250 million. Currently Bulova designs, manufactures, and markets several different brands, including: the signature "Bulova", the stylish "Caravelle" (formerly "Caravelle New York"), the dressy/formal Swiss-made "Wittnauer Swiss", and the "Marine Star".
Is Citizen better than fossil? ›
Both brands offer a range of different styles and price points, so it really comes down to personal preference. However, when it comes to quality, Citizen watches are often considered to be superior. They use higher-quality materials and construction, which results in a longer-lasting watch.
What is the lifespan of luxury watch? ›
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.
Who wears the most expensive watch? ›
Floyd Mayweather, an American boxing promoter and former boxer, owns the Billionaire watch from Jacob & Co., which is considered the most expensive watch ever sold. Its worth is estimated at $18 million. Jacob & Co. Billionaire is white gold, and 313 emerald-cut diamonds cover it.
