A Rough Guide to Investing in Watches

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With the stock exchange being so volatile at the moment, people are looking to invest in something more reliable and solid.  Luxury watches are a good and fairly straightforward investment as they’re small, easy to look after and the classic makes rarely lose their value.  However, that doesn’t always make them a safe investment as they are very much at the whim of fashion and it can take a very long time for certain watch styles to become fashionable again.  Also, some watches may never lose their value as such but they can also not increase greatly over time so are far from a sure, fast and big money spinner.  Obviously, we love it when people want to invest in watches but we advise caution as it’s easy to get carried away so here are a few things to think about.

Playing it Safe

Trying to predict what will be fashionable in 10 or 20 years’ time is a fool’s game so sometimes it’s a good idea to stick to brands that simply never go out of fashion.  They’re expensive to buy but watches by Rolex or Patek Phillipe just don’t lose their value.  Even these brands go through phases of being more or less desirable but people never stop wanting them.  With the current situation of Rolex sports models having a waiting list to get hold of, all eras of these watches have gone up in value.  Of course, there are certain models of both these makes which are exceptionally valuable and always will be but all models are a fairly safe place to put your money as long as you look after them.

Rolex Oyster Perpetual Day-Date model: 18078 Circa 1987

Something Special

Those ‘certain models’ are usually those with something a bit different about them.  There are exceptions to this with models which are just hugely fashionable but the most reliably expensive watches are the limited editions.  An example of this is the Rolex Daytona “Patrizzi” which actually has a defect which caused the dials to discolour but this makes them special and hence, a great investment.  The law of ‘supply and demand’ is as much a thing in watches as anything else so watches with a very limited supply are often in high demand.

Vintage Rocks

This supply and demand rule comes into play big time with vintage watches as the older they are, the rarer they become and the longer you keep them, the older they are!  With vintage watches, it’s possible to make a good return on the more obscure brands or ones that aren’t just Rolex and Patek Phillipe! 

Thelm Officers Military Chronograph circa 1930s

Maintenance is Important

With any watch you buy and plan to keep for any length of time, it’s vital to maintain it properly or it will definitely lose its value.  It goes without saying that watches’ values depend on their condition so getting them regularly serviced or restored if they are slightly damaged or worn is a good idea.

Regardless of the type of watch you want to invest in, an absolute golden rule is to make sure you are getting what you think you’re getting.  Offers that seem too good to be true are usually just that.  There are some very clever fakes out there including the ‘Frankenstein’ watches which may have a genuine case but a fake mechanism or fake parts.  Only buy from reputable dealers.  Clearly, at this point we are going to point out that we are a reputable dealer who can source the watches you want for you.  We have a great deal of experience in helping people invest in watches so are always glad to offer any advice on what to buy.  If you want to talk to us about buying vintage or pre-owned luxury watches for any reason, please call 01273 239763 or email info@jamesrossjewellers.co.uk.

A Rough Guide to Investing in Watches was last modified: March 13th, 2020 by Admin