Time is money – luxury watches as an investment
The inflation rate in Germany - measured as the change in the consumer price index (CPI) compared to the same month of the previous year - was +10.0% in September 2022. The inflation rate has therefore risen rapidly after +7.9% in August 2022. In times of low interest rates and financial repression, investors are looking for an attractive alternative to conventional investments.
The inflation rate in Germany - measured as the change in the consumer price index (CPI) compared to the same month last year - was +10.0% in September 2022. The inflation rate has thus risen rapidly after +7.9% in August 2022. In times of low interest rates and financial repression, investors are therefore looking for an attractive alternative to conventional investments. Banks no longer pay interest and the real estate market is heated, which is why more and more people are investing in tangible assets as a capital investment these days. Tangible assets with a personal connection - so-called "sweetheart" investments - are in vogue. In retrospect, the watch market has proven to be resistant to financial crises and pandemics. If a few criteria are taken into account when purchasing a luxury watch, it is an excellent investment. It is not primarily personal taste or technical complications that are decisive, but solely the current market assessment, which reflects current demand. Timeless classics that have been of high purchase interest for decades and whose value has increased in the past are recommended as investments. Modern timepieces that have only been popular for a few years can also be considered. It is important to recognize the right time to realize profits. Therefore, you should keep an eye on the different marketplaces. Renowned luxury watch brands such as Rolex, Patek Philippe, Audemars Piguet, Vacheron Constantin and A. Lange & Söhne are ideal. Not all watches from these brands are suitable as an investment, but there are some models that are particularly qualified.
5 promising watch brands
Rolex
Thanks to their fame and global demand, Rolex watches retain their value very well and are considered a "currency" in their own right. The Rolex Professional models in stainless steel are particularly popular and are therefore ideal. The Rolex Daytona is predestined for this as it has become an icon of the watch world over the past few decades. While the watch cost around €625 in the 1970s, its value has now risen to more than €25,000. Other Rolex sports models such as theDeepsea , Submariner , GMT-Master II , etc. have shown that their value has risen continuously over the past ten years. The value of the Daytona has doubled, almost tripled, since 2000. Better returns can usually be achieved with the steel models. It is not the materials that are crucial, but global demand.
Patek Philippe
Patek Philippe only produces a very small number of watches, so the timepieces are ideal as an investment. The Swiss watchmaker produces elaborate, complicated watches and the range is exclusive and limited. The most famous watch is probably the Nautilus and it is also one of the most stable watches in the world. Before the Patek Philippe Nautilus Ref. 5711/1A was discontinued, the market price was around EUR 70,000. Since the announcement of the end of production in 2021, the price has risen to more than EUR 100,000.
A. Lange
A.Lange & Söhne is a German watch manufacturer that produces first-class, precise wristwatches by hand. Approximately 5,500 watches are produced each year. The small number of pieces has a positive effect on the price development. Lange & Söhne launched the Lange 1 in 1994. The most recognizable feature is the decentralized display. Some rare examples, such as the first three references from 1994, increased their value significantly. Special models and the first generation in particular have proven to be very successful.
Audemars Piguet
An Audemars Piguet is an excellent lucrative investment. A prime example is the Royal Oak Jumbo, reference 15202, which has seen an enormous increase in value since production was discontinued. With the Audemars Piguet Royal Oak and Royal Oak Offshore, you can expect a healthy return. The watches, which are limited to just a few hundred pieces, are sought after and achieve high market prices.
Vacheron Constantin
Vacheron Constantin is one of the best-known luxury watch manufacturers and looks back on a long tradition. The most popular model is probably the Vacheron Constantin Overseas. In 2021, the watch performed well and its price increased by an average of 51%. This is due to the price-performance ratio compared to other manufacturers and the increased marketing and visibility of the brand.
What to consider when buying
A certain level of specialist knowledge and an overview of the marketplaces are useful. The completeness of a set is important for maintaining the value of a watch. The box, papers and accessories are a prerequisite for demonstrating authenticity and origin and ensuring that the value is maintained. The watch should be in perfect condition, with no scratches or damage if possible. Of course, regular maintenance of the watch is also part of caring for the watch.
Conclusion-Watches as an investment
When buying a luxury watch, we recommend that you choose one of the well-known brands listed as an investment, as these are much easier to resell and appeal to a larger circle of collectors. When it comes to models, you should choose classics and bestsellers. Special editions or discontinued models are advantageous for good value development. Watches can be an excellent investment if you pay attention to a few aspects and are up to date. We are happy to answer any questions you may have and provide advice when choosing the right watch.
