How to invest in watches? You must know that before you start
Nowadays, nobody really needs a watch. After all, mobile phones indicate the time equally reliably. Watches, however, have become a symbol of status, which is why some buyers are ready to spend a lot of money on them. At the same time, you can earn on the watches on the wrist.
From 2017, the value of the desired luxury watches increased by an average of almost 9 percent. annually. This shows the general Watch Charts market index, which tracks prices for 300 most important models.
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There is practically no upper price limit for individual copies. There are watches that exceed even a million. For example, Patek Philippe Nautilus.
However, not every expensive watch is really a guarantee of profits. – There are a handful of brands that have been doing well on the market so far. These include well -known brands such as Rolex, Patek Philippe and Audemars Piguet – says Balazs Ferenczi, head of the Brand Engagement department in Chrono24, the online luxury watches.
There are also single desired models of other manufacturers. The market is dominated by men's watches; Women's models are rather a marginal phenomenon.
However, the average consumer is not always easy to get a new watch from the most sought after producers. There are often waiting lists And it may take many years before the buyers actually receive a new watch from Rolex.
See also: Do you think about investing in watches? Here are six proposals to start an exclusive collection
The demand and supply determine the price of luxury watches
Some sellers also favor customers who have previously sold watches. This is part of the strategy: Luxurious watches are also sought after because brands maintain production at a low level. Therefore, the secondary market remains, where used copies are sold.
– Ultimately, demand and supply determine the price of luxury watches. We observe the largest increase in value in the case of old watches and collector items -says Daniel Vitallowitsch, an investment advisor at Albrech und Cie Vermögensverwaltungs-AG. However, you have to know things.
Limited editions or models with rare discs reach the highest prices. Advanced technologies, such as an eternal calendar or a minute repeater, also reach high prices. The same applies to a certain story: If the watch has ever flashed on the wrist of a known person, this automatically increases its value.
What matters is the condition of the watch, says Leoni Polkläser, an expert in the field of jewelry and watches at the van Ham auction house. – Copies are sought after that have almost never been worn or are in very good condition – he explains. It is important that as many parts of the watch as possible are still original. Even spare parts from the manufacturer are not welcome by buyers.
If the watch is still in the original box and is delivered with the manufacturer's warranty and service receipts, it also increases its value. – It is difficult to determine the actual state of a given copy. That is why it is best to go to a specialized seller – advises Polkläser. Watches are usually checked before sale.
Noble watches are usually a long -term investment
Even if you use the help of a seller, you should not enter the watches market without proper preparation. – Before making a purchase, every buyer should consider which watch is appropriate, how it should be worn and, which is no less important, which is in his budget – says the expert.
A lot of information about the market can be found on the Internet. There are also watch clubs where enthusiasts can exchange ideas and help novices.
Finally, it is also the wallet that decides from which model beginners start their collection of luxury watches. – On the Vintage market, at auctions you can find interesting models from 1000 euros up – says Polkläser.
On the other hand, Balazs Ferenczi assumes that The investment is really interesting only from the “average four -digit euro up”. – A lot depends on the state. Buyers should rather choose a model that suits their budget and is in very good condition than a more desirable model in poor condition – he advises.
Beautiful watches are usually a long -term investment. Usually it takes years to significantly gain value. They are associated with risk, as in the case of any other speculative investment: The buyer can bet on the wrong horse and end up with the watch, the value of which barely increases or even falls.
Recently, the balances of many buyers have been deeply red. The watches market experienced a boom during the coronavirus period, and the watches reached the highest prices. After reaching the peak level in 2022, market prices dropped significantly And they are currently in stagnation. Everyone who bought in the wrong time has recently suffered losses.
– Under no circumstances should you buy watches on credit – warns the Vittalowitsch property advisor, who has already experienced it in his professional life. – Anyone who invests in luxurious watches should have about 20 times the purchase price as assets – suggests. So if you want to buy a watch for 5,000 euro, you should have another 100,000 euro in stock. Then the possible loss of value will not be so significant.
Buyers should also think about storage. Vittalowitsch says that the safe makes sense for expensive watches. If you do not wear an expensive watch on your wrist, you also need so -called Rotomat for watches. – Watches need movement. The longer they lie, the more they are susceptible to damage – explains and adds that they should be serviced every few years – which can cost several hundred euros.
The above text is a translation with German portal Welt
