Apart from their cultural and aesthetic value, elite and expensive watches are increasingly seen as a profitable class of investment assets, offering both financial gain and personal enrichment.
Indeed, watches are a way to invest while enjoying a passion for beautiful things. However, this topic can be controversial. Like any other investment, they should be approached with caution. Investing in watches can be risky, and some may find themselves in a difficult position due to a lack of knowledge. It is necessary to carefully evaluate factors such as brand, rarity, origin, condition, and market trends.
First of all, we are not financial advisors. Predicting trends is not easy. The only thing we can tell you is that if you are looking at watches to make a profit, you should take the time to study and understand each purchase before investing your hard-earned money. This advice applies to all kinds of investments and asset classes.
One of the best ways to assess the potential price dynamics of watches is likely to study the past performance of brands or specific models with proven reputations - this is one of the most frequently asked questions we receive.
As with most other investments, making money on watches in the short term will not be easy - at least given the current market situation. Over the past few years, the watch market has been quite strong. Swiss watch exports are breaking records, and demand generally exceeds supply. In such conditions, many watches could be found whose resale value exceeded their retail price. It is no surprise that this situation has spurred speculation on every item that can be quickly profited from, especially by 'flippers'. People buy watches not to enjoy them but with the sole purpose of reselling them for profit.
With the more complex current market situation, supply now matches demand for most watches. We even receive reports from brands about order cancellations made by flippers as the potential for immediate profit decreases. Overall, few brands still sell watches (and not all models) at prices exceeding their retail value, as evidenced by the latest data from WatchCharts.
Overall, the 'big three' - Rolex, Patek Philippe, and Audemars Piguet - consistently remain the brands with the highest value retention (defined as the premium/discount at which watches are sold on the secondary market relative to their retail price). The same can be said of some other brands or specific watches with limited supply. Remember elite independent brands like F.P. Journe, Rexhep Rexhepi, or Kari Voutilainen... or the hype around Moonswatch watches when they were released!
The watch industry is highly commercially profitable (usually from 30 to 50% for retailers, depending on the brand). When the market situation worsens, it is not uncommon, depending on the country and retailer, to get a discount even for regular customers, and sometimes the price of some watches can drop sharply.
In the long term, the situation changes, as most watches retain their value or even increase their 'market' price, especially in connection with the boom in the pre-owned watch market and inflation in general.
Initially, the pre-owned luxury watch market was limited to auction houses, pawn shops, and a few watch dealers, but over the past few years, it has changed significantly. Wearing pre-owned watches has become much more acceptable and even cool. You can save money, increasing attention is paid to sustainability, and pre-owned watches can be a way to acquire sought-after models and find rare, hard-to-get models. But here, too, you need to be very careful. Many watches do not appreciate over time, especially compared to their retail price.
Again, in this regard, watches from long-established brands such as Rolex, Patek Philippe, Audemars Piguet, Cartier, or Omega are likely to provide the best value retention in the long term.
Rolex Daytona 116520
Omega Speedmaster Moonwatch (Pre-2021)
Of course, this does not mean that buying a watch from one of these brands at any price is always safe. Naturally, there is a lot of speculation, and used watch prices can fluctuate greatly depending on market conditions. The only obvious thing is that the management of brands retaining the most value has been consistent and coherent.
In recent years, there has been sharp criticism over the insufficient availability of some watches. Those who complain about the lack of watches will be the first to complain about their sudden appearance on sale. Undoubtedly, brands like Rolex, Patek Philippe, or Audemars Piguet create value for their (existing and future) clients by managing supplies and adhering to their policy. The cult status of products such as the Rolex Daytona or Hermès Kelly bag is largely due to their exclusive supply.
The same can be said of leading independent watchmakers like F.P. Journe, Rexhep Rexhepi, or Voutilainen, as confirmed once again at the recent Only Watch auction, given the prices for unique pieces they donated to charity. Their goal is not to grow the business at any cost but to continue creating their watches by hand, adhering to an uncompromising ethic.
Beyond the brand, numerous factors must be considered: rarity, condition, age, material, changing trends, and certainly the authenticity of the watch - especially if you are buying them outside of an official retail outlet.
Entry-Level Luxury, Price-Quality Ratio
At the other end of the price spectrum, entry-level luxury watches are rarely considered investments - simply because there is no real speculation around them. Watches in this segment are less perceived as aspirational products. Nevertheless, some sought-after watches from brands like Tudor, for example, or limited edition releases, may retain their value or appreciate over time.
In any case, these watches often offer exceptional value for money. Watches from brands like Seiko or Swatch Group (e.g., Tissot or Hamilton) offer a lot for the money. The success of the Tissot PRX model is probably largely due to its value for money and its appearance. You may not be able to resell your PRX for a profit, but what you get for 700 euros is pretty hard to beat.
Overall, we recommend buying watches with a long-term perspective. We prefer collectors over traders. If watches can be considered material assets, then the joy of owning and wearing beautiful watches is perhaps the most important thing - at least for us at WatchTested.