Luxury watch collectors often refer to the watches they buy as an investment. But how much of an investment can luxury watches be?
Thankfully, Global Boutique can help. This article will explore the benefits of buying an investment watch and the best watch brands to look for.
Keep reading to learn how to start investing in luxury watches and discover our top 5 watches to get you started.-
Why Invest In Luxury Watches
Choosing how to invest money can be challenging. Investing in property or the stock market can yield impressive results, but there is a significant risk factor.
An investment in a luxury watch is much less risky. It is closer to an investment in raw materials like gold or other precious metals. Not only is the watch typically made from these precious materials, but it often holds its value. This can rise at a higher rate than the raw materials themselves. Read from about the most popular replica rolex.
Like investing in whisky, watch investments give the owner a tangible asset. The value of this can increase over time due to rarity or reputation.
The price development of an investment watch will be dependent on the condition of the watch and how many were made.
Watches (in the UK) are also exempt from the capital gains tax. The tax-free aspect of luxury watch investments is particularly appealing.
Watches can be a great way to diversify an investment portfolio. You won’t have all your eggs in one basket and the saleability of some luxury watch brands makes this a more liquid asset.
Finally, a tangible asset like a luxury watch is akin to investing in fine art. You will appreciate the craftsmanship that has gone into creating them and they won’t deteriorate when properly looked after. A watch that has matured with age can be a fine asset to pass down the family line.
The Pre-Owned Watch Market
The pre-owned watch market has steadily grown over time. This is because reputable sellers provide collectors with a safe way to invest in discontinued or rare pre-owned luxury watches.
Significant global events including COVID and the war in Ukraine have had a significant impact on the watch market as a whole. This has had a knock-on effect on the pre-owned watch market.
As with any market, there will be fluctuations. The impact of trade limitations in Eastern Europe and production and distribution issues due to COVID have seen a slight dip in the market. However, this could be good news for those looking to invest.
Is now a good time to invest in a luxury watch?
Knowing when to buy and sell is key to a good investment and the pre-owned luxury watch market is currently a buyers’ market.
For example, the 5711 and 5712 Patek Philippe was trading for around £150k at their peak. These models (at the time of writing) are available for just £90k and £95k.
