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23 Oct, 2019|

Investing in Watches: What Makes a Good Investment?

Watches offer great investment potential. If you are investing in watches and choose the right watches for your collection, they hold their value and some even increase in value.

But how do you know what makes a good watch investment? Are there specific factors you should be considering when it comes to investing in watches?

Why should you research before you invest in watches?

If you are looking at it purely from an investment perspective, it is fair to say that not all watches will be worth investing in. Some are more likely to hold their value (or increase in value) than others.

Whilst a watch collection is likely to also display your personal taste, there are some factors to consider before you invest.

Remember, the most important thing to do is carry out research before you purchase. Both into the watch itself as well as the supplier you intend to buy from. The last thing you want is to find yourself with a fake or a watch which isn’t in the condition that you expected it to be. This is particularly the case if you carry out most of your research online. Ideally it is best to see the watch in real life before you buy.

What factors should I consider when investing in watches?

Collectors’ Watch Brands

There are certain brands that experts in the watch industry suggest will hold or increase their value the most and therefore make the best investments. These tend to be the prestige luxury brands. Two watch investment brands often cited by experts are Rolex and Patek Phillipe.

Brands which can demonstrate that over time their watches have held their value and that their brands are in demand are likely to be good options to invest in. This means there will most likely always be someone who wants to purchase their watches.

Some of the premium brands only make a certain number of a particular watch. This makes them more collectable and therefore a good investment as the demand will be there if you do decide to resell.

Ultimately, it’s a good idea to really do your research into the brand that you do choose. This will ensure that you know what you like as well as what makes the best investment and allow you to balance these two factors. Read our recent blog on the top watch brands for collectors for more information.

Watch condition

Always buy the best condition watch that you can afford. A watch in pristine condition will be worth more than one in poor condition.

The best thing to do is see the watch in real life allowing you to check the condition before you buy. Particularly if you do your research on the internet. You don’t want any surprises when you receive your watch.

Factors to look at when it comes to the condition of a watch include:

  • Scratches
  • Damage
  • Missing decorative pieces
  • Whether all the parts are original
  • Whether the watch works
  • Service history

Watch styles

It may be tempting to purchase watches that work with current fashions or those that celebrities are currently wearing for example. But it does seem that sticking to classic styles may offer better investment. Fashions come and go but people will always want a classic time piece.

Also think about the type of watch you want – mechanical or quartz. This can have some bearing on the watch’s investment potential.

Watch Age

When it comes to watches, age doesn’t necessarily determine a watch’s value. Many experts suggest rarity is a greater factor than simply the age of the watch.

Vintage pieces can offer good investment potential. But if you do decide to go for an older watch, or vintage piece, then doing your research will be key. Some of the older, more desirable watches are unfortunately targeted by fraudsters.  There are many fakes in the market, as well as there being the risk of buying a stolen piece.

Just because a watch is new, doesn’t mean it isn’t worth investing in. From the right brand and with the right design, a new watch is likely to become a classic. Equally, newer watches which are produced as part of a limited-edition collection can rise in value very quickly due to the demand that is created.

Likewise, some watches which have been discontinued can offer good investment potential

How do I protect my watch collection?

Once you have built up your watch collection or are in the process of starting a watch collection it is important to understand how best to protect your watch investments.

Have your watch serviced

Servicing a watch can ensure that it is working correctly as well as helping to maintain the validity of a manufacturer’s warranty.

Servicing can also pick up any issues or damage to straps or clasps. Something which can help reduce the likelihood of anything happening to your watch whilst you are wearing it.

Store your watches correctly

The way that you store your watches will be very important. Not only to ensure that you maintain the condition of your watches and avoid them incurring any damage. But also, to keep them safe and secure.

Storing your watches in a safe is usually the best step to take. Many insurers will require you to keep your watch collection in a safe when they are kept in the home. Some may also require you to use a certain type of safe. So be sure to do your research and discuss the best way to store your watches with your insurance broker

Invest in the right insurance

Depending on the value of your watch collection, you may be best to consider a high net worth insurance policy. It is likely that a watch collection will exceed the limits typically specified on a standard home insurance policy for example.

In most cases watch insurance can protect your watch if it suffers accidental damage, is lost or stolen.

You will need to ensure that your watches are protected both in the home, and when they are being worn outside the home. You will also need to make sure that you have enough cover for your whole collection, as well as individual items. When it comes to individual cover you need to ensure that you have enough cover to protect the highest value item in your collection.

At Anthony Jones we understand that having a watch collection can be more than an investment for many people. Watches are such personal possessions and hold high sentimental value. That’s why we offer a bespoke service to those looking to arrange high net worth insurance for their valuable possessions. We work hard to not only arrange the best cover for your needs but to also work with you on risk management advice to ensure your possession stay out of harm’s way.