From stocks and shares to real estate properties, there are many ways to build an investment portfolio, and doing so can offer you financial security and a wealth of money to enjoy later on in life or pass down to your generations.
While the above things are the default investment options, the prospect of having a diversified portfolio can make sure that you’re not putting all your eggs in one basket. Investing in luxury watches, for example, is one way to justify spending money on material things, enjoy it for years, build wealth, and earn money at the same time should you decide to sell it in the future.
With that said, we are discussing in this article what makes investment watches a real deal and the reasons why you should consider them. But, before that, have you managed to check the luxury line of Chopard Mille Miglia?
What Makes Luxury Watches a Good Investment?
1. They can double or triple in value in the future.
Much like vintage cars and furniture, luxury watches can appreciate in value over time. In 2017, for example, the 1968 Rolex Daytona Paul Newman—which was previously owned by Paul Newman himself—was sold at an auction for $17.75 million. It is the highest-priced wristwatch ever sold in an auction.
Keep in mind, however, that not all vintage, luxury watches appreciate at that rate. While there’s no rational explanation for the prices paid for such watches, it is often based on the rarity of the products and the hype surrounding them that makes them a collector’s item.
2. They at least retain their value.
As said above, there are only a few watch models from select brands that will see an increase in value over time. But, at the least, luxury watches are classic pieces that are profitable anyway.
If you’re looking to invest in a luxury watch that you can wear and sell in the future, you should go after brands that are known for their excellent watchmaking and limited-edition items in a more accessible price range.
3. They may become a collector’s item over time.
We’ve talked about luxury watches that triple in value and the ones that retain their prices over time. The other category consists of items that have the potential to increase in value in the next few years. There are no mechanics that would tell you which ones would generate demand in the future, but isn’t it exciting to speculate and invest in watches that you think would eventually turn into iconic ones?
A relatively safe bet would be purchasing from well-known brands. At best, you’ll earn a little more from your investment, and at worst, you will suffer from a small loss. In this category, you would go out there and hunt for a gem before everybody else does.
These are some of the factors you would want to keep in mind when looking into investing in luxury watches. Overall, the key here is to familiarize yourself with different luxury brands, their watches, and their backstories. You’ll also have to know the associated risks—like buying antiques or artworks, the value of luxury watches is subject to trends and supply and demand.
With that said, we are concluding with some tips when buying luxury watches.
Have it serviced regularly.
Luxury watches don’t deteriorate easily, but they have to be maintained and stored properly to protect them from damaging factors such as chemicals, dust, and anything that can scratch their surface. It’s recommended to replace their batteries every 1-3 years or when the watch has stopped completely.
Beware of fakes.
Class A, high-end imitations are anything but a real deal. Unfortunately, it’s a huge market that rakes in millions of dollars every year, worldwide. It could be hard to detect fake products when they are intentionally designed to look like the real ones.
The solution here is to buy luxury watches from authorized dealers. If, on the other hand, you’re buying pre-owned, always buy from dealers that you trust. It’s also a great idea to authenticate the watch at a store before purchasing.
Luxury watches hold sentimental value. They are regarded as status symbols, signifying success and high social class
There is no guarantee that all luxury watches will increase in value over time. As we have said earlier, there is no exact formula to predict whether they would be in demand in the future. But, should you decide to buy your first luxury watch—either as a fashion statement or an investment—remember to wear it, enjoy it, and maybe sell it for the same price you bought it for in the future, if not more.
What are your thoughts on luxury watches as investments? Let’s talk in the comment section below. Make sure to share this with your friends, too!