Buying a watch, from an investment perspective, is something that drives both nerves and excitement depending on your outlook. Whilst the average financial advisor may not point you in the direction of an auction house as a place to find such an asset, some watches have the potential to unite you with your own wearable investment!
What makes timepieces a good investment?
According to the findings of Knight Frank luxury Index 2019 (extract pictured above), watches as assets have grown in value by 73% over the last decade; with an increase of 5% in the past year. They prove to be incredibly involatile, holding a steady increase in value with unwavering confidence. This is the result of several fundamentals of the watch as a product, such as the inherent value of its craftmanship and materials, and the continually increasing market of collectors generating demand for sales, combined with the reduction in production or availability of certain models and makes.
What do we really think...
With so many other product/asset types ahead of watches according to Frank Knight, with coloured diamonds, wine, art and rare whiskey driving astounding growth, why go for a watch?
From our perspective, a watch is an ordinary treasure, something that is commonplace but worth the world to its owner. They take the place as heirlooms, gifts, and can be symbols of a person’s coming-of-age or life achievements. To invest in such an item is not only an act of finance, but of genuine interest.
Learning how to spot value in a watch can be a simple matter of self-lead research, with basics such as its branding, rarity or make-up of metals being a clear decider of the item’s marketability. Although this could be said of any of the above alternatives, such as Art, Fine Wine or Whiskey, at least you can wear and enjoy the watch during your ownership - you couldn't drink the bottle of Macallan and expect to see your money again could you?!
Dipping a toe into the world of watches is an adventure and to make an investment in them is an undeniably brave action. But the joys of ownership and potential future sale is even more satisfying for it.
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