The reality of luxury watch ownership
Don’t expect your watch to appreciate in value like real estate. The truth is that most new high-end timepieces are more like new cars in that they lose value the moment they leave the showroom. In the first year, most mainstream luxury models will depreciate in value by about 10%. It depends very much on brand perception, demand and how readily available the watch is.
The value of pre-owned luxury watches
Pre owned luxury watches tend to cost less than brand new watches. Those who aren’t looking for an investment and simply want to save money on a luxury model may be better off exploring the second hand market as a result. As the years go by, some watches will continue to fall in value, others will plateau and a few will start to gain value.
Which luxury watches appreciate in value?
Certain brands like Rolex, Patek Phillippe and Audemars Piguet have produced watch models that have become several times their original value within a few decades. This is partly because of the brand name; other factors can also make a watch increase in value. Limited edition models, watches with famous past owners and watches with highly unusual features can often become collectables. This demand, combined with scarcity, drives up the price. For limited editions and unusual watches, this appreciation can sometimes happen as soon as a watch model is discontinued (some models are sold for a decade before they’ve phased out, while other fun variants may only be on sale for a year).
What can cause a luxury watch to depreciate in value?
Some watch models are manufactured for many years in large volumes. A lack of scarcity means that these watches typically never increase in value over time. Preserving the condition of a watch matters too. Scratches, rust or poorly executed repairs can bring down the price tag of a watch. Ideally, you want to keep a watch in brand new condition to prevent value loss - polish it (but don’t overpolish it), store it somewhere safely and keep the original box if you can.
What about vintage watches?
A watch may become vintage after 20 to 25 years. If it is kept in pristine condition and was valuable on purchase, it is likely to go up in value. There are some cases where the ageing of a watch can make it more desirable and worth more. A famous case is tropical dials - these are original standard dials that develop a warm brown tone over time that is attractive to collectors. Wear and tear that has a story to it may also increase the value of a watch.
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