Investing in watches: Can this be a wise investment?

Vimal Joshi
Updated: 15 Dec 2021, 05:02 PM IST
TL;DR.

Investments could be of various types — stocks, mutual funds, ULIPs, fixed deposits, gold and luxury goods. However, there is one asset class which you can literally wear on your sleeve — watches. Read further to know more about time pieces as an investment option

While you use watches just as your clothes, their value appreciates and you can sell them after a few years for a reasonable appreciation.

While you use watches just as your clothes, their value appreciates and you can sell them after a few years for a reasonable appreciation.

Investment in watches is long-term and can offer good returns. Unlike other investments such as in stocks and securities, you can wear this asset on your sleeve, literally!

While you use watches just as your clothes, their value appreciates and you can sell them after a few years for a reasonable appreciation. Premium watches do not depreciate in value and require little maintenance. The watches, if used by celebrities, are sold for a huge price. For instance, Paul Newman’s Rolex Daytona was sold for $17.8 million in October 2017.

While explaining the rationale behind growing prices of luxury watches, Deepak Yachamaneni, Waterfield Advisors says, "The demand side has exploded, while there is not enough supply because the watch factories are still manned by people. Some watch companies do not make more than 6,000 watches in one year."

Although most of us cannot afford to buy such an expensive watch, we can, at least, buy what can fit our wrist as much as it fits our pocket.

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These are the key points to remember before you invest in watches.  

But before you get your hands on a precious time piece, make sure that you are aware of the following:

Here we list out certain tips to help you make investment in watches.
 

1. Affordability: First and foremost, make sure you can afford to buy the watch. Checking the prices of ultra-premium watches can be your favourite pastime, but if it is beyond your means, then it is futile to explore it.

2. Famous brands: Try to stick to the known brands which have higher chances to appreciate in value such as Rolex and Patek Philippe. The classic watches always have demand in the resale market of watches such as Rolex Submariner and Patek Philippe’s Nautilus.

3. Try to learn basics about the watch market: It is vital to know the basics about the watch market before you commit any huge money. Try not to buy something just because it is priced highly. You should ask around, and do your own research.

4. Look for exclusivity and rarity: The watch, just as art, acquires greater value after a period of time. The rarer a product gets, the pricier it would become. Although most rare and exclusive watches would be exorbitantly priced, there would be some that will soon go out of production. So, those watches which are nearing the end of production are worth exploring for investment purposes.

 

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A watch can be sold for as high as $17.8 million. 

5. Develop a keen interest: If you don’t like to collect old and antique goods then a watch collection, perhaps, may not be a thing for you. You should have some penchant for collecting old items, particularly watches.

We can conclude that watches can be a good investment option so long as you have deep pockets, love for watches, and importantly, an inclination for rare and unique products. If the only purpose of collecting old watches is to make money, then perhaps you should stay confined to stock markets and financial institutions.

 

First Published: 15 Dec 2021, 05:02 PM IST
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