Why Should I Invest in Luxury Watches? Time is Money, Literally.
For years, individuals have been looking to invest their money in assets which will deliver a return over time.
Most end up putting their money into the stock market, rare artworks, fine wines and vintage cars. However,
what the majority of the public don’t know is that some luxury watches are great assests which appreciate
in value over time and thus make great investments – that is, if you know which watches to put your money into.
While no one can tell you a straight formula for successfully investing in watches given the fluidity of the watch
world (like most investment sectors), there are definitely some safe bets which have been proven time and time
over. Two luxury watch brands which are known for generally retaining their value or delivering a return on
investment are Rolex and Patek.
Of course the average return you can expect to make on affordable Rolex and Patek watches won’t seem as
impressive as very valuable art pieces where appreciation is in the millions – but of course you have to be able to
invest as much into the artwork in the beginning to receive such a profit – except in rare cases of luck.
So what makes watches an attractive and worthwhile investment? Both the (relative) affordability of them and
the fact that you can enjoy your investment. Indeed, unlike intangible stocks, wines you can’t drink, fragile art-
works and vintage cars that are advisably kept in storage to minimise car miles and damage, a watch owner
– in most cases – can actually wear and enjoy their investment. While at the same time the watch retains its
value and can even deliver a return over time.
Of course watches can also be economically satisfying when looking at profit margins. To give you an example:
back in 2015 we sold a Patek Philippe Nautilus reference. 5712 to a client for £19,000 (this was the watches
worth circa 2015), whilst today we would value the watch at £27,500. Additionally in the favour of an investor is
the fact that if a private individual buys a watch for him/herself and later decides to sell it, any profits made on the
watch will be exempt from capital gains tax (CGT).