If you have a passion for wearing stylish watches, then at some point you may have considered the idea of investing in watches and becoming a collector. The difference between a watch owner and an investor is that the latter is in the game to make money as well as looking good.
Although many watch investors hold a permanent collection of vintage favourites, they are also willing to buy and sell other pieces to make a profit. Although there’s money to be made in watch collecting, there’s also the potential to lose out if you don’t know what you’re doing; so, exactly how do you become a successful watch collector?
Every watch collection needs to start somewhere and unless you’re willing to part with your great-grandfather’s vintage Rolex, you’ll likely need to fork out some money to invest in your first piece. Research is essential when you’re considering which watch to launch your collection with.
Find out which watches are on trend at the moment and take note of values that are rising. Out of production pieces are a great idea as they tend to increase in popularity, particularly if they’re made by well-known brands such as Rolex including sports models such as Submariners, GMT Masters, and Daytonas.
However, you should expect to shell out significant cash for such quality watches. Patek Philippe and PaneraisLuminor watches are also good at holding value so could be a solid investment to start your watch collection with.
Potential To Make Money
Much like buying a new car, it’s a good idea to avoid purchasing a brand-new watch as the hit of depreciation it takes can be quite severe initially. A pre-owned piece normally represents a better bet in terms of making a profit.
It’s worth mentioning though, that after the original depreciation occurs, the value tends to level out and any follow-on decreases after that are usually very minor. If you don’t wish to purchase brand new, but equally are eager to snap up the latest pieces, then you should expect to wait less than a year to look at second-hand watches online and find a £1,500 drop off their ticket prices.
Many types of investment come with a certain degree of risk, which is all part of the thrill and the opportunity to make money. But unlike the property market, stocks and shares or just straightforward gambling, watch collecting is different.
The safest bets are those that seem to produce the biggest rewards – so investing as much as you can in the big names is the key to making more cash. However stylish a watch may look on your wrist, if it’s made by a less well-known brand, then unfortunately it’s not likely to hold its value against the bigwigs in the industry.
Nothing is certain in the world of investment, but watch collection can be an incredibly enjoyable pastime and business venture for those with a passion for the market; so, if you fall into this category, then surely it’s time to get a dream luxury watch?