Should I buy a watch as an investment?

Nowadays a watch is much more than a timepiece, it’s a style statement too, but have you considered whether it could be a good financial investment for the future?

With low interest rates people are looking for alternative ways to increase their wealth. According to a study by Xupes*, buying a pre-owned luxury watch is a better long-term venture than saving your money in an ISA.

However, the decision to part with your hard-earned cash shouldn’t be taken lightly. Here are a few considerations if you’re looking for an investment with a difference.

Vintage Pieces

A popular option for many watch collectors is to choose a vintage model. However, the choice can be bewildering with so many brands from different eras and huge differences in price. Some of the most interesting vintage watches are those developed for a specific purpose, such as the Rolex Submariner or Explorer II, designed to withstand rigorous use.

As with most investments, supply in the market drives price. For instance, new Rolex Daytonas are rare, so the price tag has increased. In November 2017, a Rolex Daytona owned by the film star, Paul Newman was sold to an anonymous buyer for a staggering £13.5m.

Another possibility if you’re looking for a return in the long run, is to predict a future classic. Look at some of the trendy lesser-known brands or a limited edition by a luxury brand which could become a collector’s piece in years to come.

Classic makes

If you’re looking to invest serious money, the two most renowned classic names in the watch market are Rolex and Patek Philippe. Both brands have a rich heritage with an exceptional reputation for craftsmanship and style.

Probably the most well-known of the two is Rolex, with its prestigious name and luxury image. Their range of professional watch collections generally receive the most attention and the highest bids from serious collectors.

Research is key

Before making any purchase, it’s important to do your research. Talk to collectors, join web forums and visit auctions to determine which watches are popular and perform well in the marketplace.

It also helps to talk to a specialist. At Whittles Jewellers we have over 155 years’ experience to guide you in making the right choice. Contact our team of experts and find the watch that’s a good investment for you.

*Research conducted by Xupes.com to show the watch price increase based on Xupes sales data 2013-2017.