Do All Luxury Watches Give Great Returns?

Luxury watches, unparalleled symbols of status, surpassed Bitcoin and classic cars last year as the most sought-after investment choice. There has been an upsurge in investors looking to profit by buying and selling high-end timepieces in the watch market, primarily at prestigious auctions. The Rolex Daytona Paul Newman, which Paul Newman himself formerly held, was sold at auction in 2017, is the most prominent instance. A staggering 17.75 million USD was paid for this watch at auction.

Exclusivity, intricacy, and condition are crucial factors when selecting a luxury watch. Classic and vintage timepieces still flourish in the current market, rewarding their owners in several ways and frequently rising in value. The best of these well-made pieces have an artisanal edge, unlike their digital counterparts, which makes them both everlasting and one-of-a-kind. More often than not, they are unique and impractical to replicate, which makes them even more special and enticing. Therefore, it should be no surprise that some high-end timepieces command exorbitant value, given their increasing rarity over time. But will this trend persist? Despite the substantial returns that you can have, it needs a keen eye to distinguish between a wise investment and a squander of time.

Why Is Holding Value Vital?

Today’s watch aficionados and collectors are coming to realise that watches can make excellent investments in addition to being items to wear and applaud. It is vital to select the timepieces that will greatly retain their worth to ensure the safety of your investment. Given the growing prevalence of luxury watch resale as a legitimate business model, it goes without saying that if you plan to sell your timepiece for a profit, you’ll want to choose a model with a good chance of holding its value or even rising in value. The top brands to consider if you’re seeking high-end timepieces that preserve their worth the best include Rolex, Patek Philippe, Omega, Jaeger-LeCoultre, Breitling, and TAG Heuer.

Factors Affecting The Returns 

Numerous factors can impact the valuation of a timepiece while determining how much a watch could be worth, some of which are mentioned below.

Limited supply 

The number of versions of a timepiece that are still available in the market determines its rarity or limited supply. For instance, if a particular watch type is a limited edition, has a small batch run, or is so old, other iterations have yet to stand up to time. Buyers are typically willing to pay a premium price for a watch that no one owns or only a select few others own.

Tudor Black Bay Limited Editions - Harrods Special and Bucherer Blue - value more than their non-limited counterparts. Interestingly, such a valuation is also accurate for the pre-owned market. In fact, a new non-limited piece would still value less than a pre-owned limited edition model

Condition of the watch

A watch’s condition includes any scars, markings, and whether any parts are damaged or lacking. A timepiece should ideally be as near-perfect in condition as feasible, and its integrality should also be considered. Over time, boxes, papers, and other accessories may get omitted from the watch, but a wristwatch sold as a complete set will nearly always fetch a more fantastic price.

Brand name

A successful luxury watch brand will almost always hold its worth or rise in value over time, notably if it has unique intricacies or mechanisms. Big names come with higher price tags even if the watch is pre-owned. The brand recognition and the remarkable quality of their products contribute to the trend.

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Highly popular brands, such as Breitling, Audemars Piguet, Tudor, Patek Philippe, and Zenith assure a higher return of investment

Celebrity ties

A watch’s value will rise if a public figure or celebrity has sported or endorsed it. The Rafael Nadal Richard Mille partnership is an excellent illustration. He donned the latest model, the RM 27-04, in 2020, which is around $1 million today. The timepiece stands out on the court when he is seen in action, winning titles. Due to the famous collaboration, one would need more today to purchase this renowned timepiece.

Patina 

Patina typically refers to a thin film of colour that develops on the watch face’s surface over time. Watch enthusiasts like this distinctive quality since it adds to the watch’s appeal and reveals its traditional design. It can undoubtedly increase a watch’s worth if it appears appropriately.

This Panerai Submersible Bronzo Blu Abisso comes from a limited edition of 1000 pieces. It carries a visible patina on the case and clasp that gives the watch a unique look

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Proven Approaches To Raise Your Watch’s Value Over Time 

Maintaining the immaculate condition of your timepiece is essential if you want to attract every prospective customer to purchase your watch. They view it as mint condition, allowing you to sell it without hassle. Here are a few tips on maintaining your timepiece to raise its worth over time.

Maintain and retain its immaculate condition

Make sure you handle your watches as cautiously and skillfully as possible. Every potential buyer inspects the watch from every aspect to check for imperfections and damage. If your customers think it is as clean as when you first purchased it, they may contemplate paying the highest price to get it. 

Keep the original documents

The original documents of the watch serve as authentication proof that you may use to demonstrate the worth and price to a potential buyer. You must always retain the boxes, receipts, and other purchase documents, which will undoubtedly convince a buyer to pay the best price.

Regular servicing

Regular servicing is another excellent practice to keep your timepiece in top condition and maintain its worth. You should be aware that the services you take for your luxury watches vary depending on the brand, shape, quality, and dimensions.

Refrain from over-polishing 

Polishing your valuable timepiece can leave microscopic scratches on its surface. Ultrasonic cleaning is an excellent method for preserving the value of your watch. The watch is placed on a smooth surface during the cleaning process, and a particular solvent is added to stir the fluid inside the timepiece, preventing any scratches. Hence, if you really want to get your watch polished, you must only get the ultrasonic cleaning done.

Wrapping Up

Vintage luxury timepieces make smart investments owing to their rarity, technical proficiency, and abiding legacy. This trend is likely to persist as more millennials join the workforce. Therefore, it is entirely up to you whether you want to preserve your valuable timepiece in mint condition to get a reasonable return on your investment or let it depreciate over time.