Which watch brands truly retain their value? There are few definitive answers, but below are brands historically considered reliable in terms of investment.
After the market correction caused by the pandemic, Rolex watch prices have mostly stabilized on the secondary market, although prices still vary depending on the model. This pleases some: for example, those who have been waiting in line for years to buy, or those who regularly seek good deals on eBay and Chrono24.
For others, this situation seems alarming. How is this possible with Rolex?
If Rolex is not on the list of brands retaining value, then which are?
The truth is that no watch brand is immune to market fluctuations. Historically, Rolex watches have always managed to hold their value, despite periodic market corrections. In terms of retaining value, sometimes it all comes down to waiting for a favorable market moment.
In this article, I will compile brands that generally show good results in terms of investment.
Key Factors Affecting Watch Value
Luxury Watch Auction Market
There are three main factors determining whether a brand or specific watch model retains its value.
First, what is happening in the auction market? What prices do brands and models reach at Sotheby’s, Christie’s, Bonham’s, Phillip’s, and possibly Heritage? Auction results are one of the most transparent indicators of collector demand and current market trends.
Second, why is this happening? As with the stock market, prices can fall when it becomes apparent that they have risen too much. For example, if a specific Omega model sets a record at Christie’s, and you wish to sell it, it is better to do so before the market becomes saturated. Remember, bubbles burst.
After a long period of growth, prices are unlikely to rise endlessly. Instead, try to anticipate a market turn. You may notice that watches with unusual shapes, like Cartier Cheich, are in demand. Then it makes sense to expect the next trend to be more classic shapes. This hypothetical example illustrates the importance of analysis. Speculation requires deep knowledge and does not guarantee success. Sometimes record sales are due to a unique history of the piece - do not expect your Omega to sell for the price of Tom Brady's watch.
The third factor is the relevance of the brand or model in the public consciousness. This can be a "chicken or the egg" situation. If a brand consistently sells well at auctions and is in the spotlight, it helps form a strong market.
How Important Is It for Watches to Retain Their Value?
This is important only if you plan to sell them. I spent over ten years in the art industry, much of that time at auctions. Investing in luxury is perfectly normal, but it should only be one of the elements of an investment portfolio. Consider such investments as an additional bonus.
You can enjoy your watches while you have them. But if you have done your research and made a smart choice, there is a high probability of making a profit upon sale.
If not, at least you have enjoyed owning the watch, which can be considered partial compensation.
I do not recommend buying luxury watches solely for storage and subsequent resale unless you are prepared to lose significant amounts.
Watch Brands That Retain Value
If you are looking for an answer to which watch brands retain value, there is disappointing news: no brand is immune to market fluctuations. However, some brands show resilience and weather downturns well.
Jaeger-LeCoultre
All brands on this list have at least one iconic model. For Jaeger-LeCoultre, it is the Reverso - one of the brand's key models.
Like the Reverso, the JLC collection includes creative, functional watches with a high level of elegance. Jaeger-LeCoultre watches are synonymous with exceptional quality, which helps them retain value.
Patek Philippe
Some Patek Philippe models not only retain their value but can also appreciate over time. This is especially true for the Nautilus, Aquanaut, and Calatrava lines.
Together with Rolex, Patek Philippe is one of the most frequently auctioned brands. They are known for innovative designs and the use of the highest quality materials. The more unique the model, the higher its potential for retaining and increasing value.
Rolex
Although the secondary market for Rolex watches is not at its peak, the drop in prices attracts new buyers. According to the economics of supply and demand, as demand increases, prices will rise again, although other factors also influence this: supply, economic situation, and collector sentiment.
For Rolex, it is better to choose classic models - Submariner, GMT-Master II, Daytona, Explorer - or limited editions. They have the greatest potential for retaining value. Stainless steel watches usually hold their value better than models made of precious metals.
Other Brands Retaining Value
- Vacheron Constantin: hold their price well in good condition. Known for complex mechanisms, such as Overseas Chronograph, Historiques, Patrimony Perpetual Calendar.
- Audemars Piguet: not all models are stable, but the Royal Oak enjoys steady demand and high liquidity.
- Omega: some models, especially the Speedmaster, are popular at auctions. The connection with James Bond enhances their appeal.
- Cartier and Bvlgari: jewelry brands with strong positions in the watch market. Cartier Tank is the most iconic square dial in history.
- Affordable Models: some Seiko and Hamilton watches retain value better than others in their price category.
Frequently Asked Questions
Which watches retain their value best?
While no brand is immune to market fluctuations, Rolex, Patek Philippe, and Jaeger-LeCoultre are considered the most stable.
What watches are a good investment?
Classic iconic models, such as the Rolex Submariner, as well as rare limited editions, are usually considered the best investments.
Which watch brands do not lose value?
All brands experience ups and downs, but Rolex and Patek Philippe traditionally perform well at auctions.
Conclusion: Important Note on Investments
When it comes to watches retaining value, it is more important to talk about specific models rather than just brands. All the brands listed have at least one iconic model.
The most reliable way to invest in watches is to choose classics. Timeless and iconic designs are more likely to retain their value even in unfavorable times. Therefore, focus on specific models, not just the brand as a whole.
If a brand has a model with a strong market, like the Submariner with Rolex, it positively affects the entire collection. Alternatively, seek out unique limited editions, as scarcity creates demand.
It is also important to choose the right time to sell, considering auction results, market trends, and the relevance of the brand or model in contemporary culture.
This article will help experts and collectors navigate watch investment questions, considering key factors that influence their retention and growth in value.