Smart investment - is it worth investing in a watch right now?

Wrist Watch

Perhaps you have some free amount of money and are thinking about ways to use it? Keeping it “under the pillow” is, of course, out of the question. Open a deposit in a good bank? Yes, as an option. But it is in a good bank, reliable. And you should make sure that the rates on deposit accounts are very reasonable.

But some invest in man-made values! Someone - in paintings, someone - in retro cars, someone - in antiquities ... However, according to our profile, we are interested in wristwatches. Is it realistic to invest in them? Could this be beneficial?

Let's immediately answer: yes, really! And yes, it may turn out to be profitable. ”And also exciting ... And when to invest? Yes, right now, the moment is quite right! How to invest and in what hours exactly? Let's try to reflect on this topic.

Only luxury!

First of all, let's immediately forget about the so-called accessible segment. With all due respect, it makes no sense to invest in a watch worth thousands or tens of thousands of rubles. We will not explain why, everything is obvious here. So we can only talk about luxury brands. Of course, these products are always expensive. If this does not stop you, then let's move on.

Quick jackpot or patience and more patience?

It is well known that any such kind of game (and such an investment is precisely a game) can be short-term or long-term. A short-term investment can quickly bring significant benefits, but risks are also high. For example: while studying the news of elite brands, you may notice that a certain brand has announced the imminent release of a new model, which is a clear development of the previous one, and very popular. This begs the assumption: this previous model will be discontinued, which means that you need to purchase this watch, because it is about to become an object of desire for collectors and amateurs.

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Sometimes this strategy works. For example, Patek Philippe not even just announced its intention to make a new steel Nautilus 5711 - like the cult old one, only with a green dial, but directly informed the world about the end of the release of the legendary 5711 / 1A with a blue dial. And, of course, in the secondary market, this last one immediately jumped in price. It jumped very significantly!

And sometimes it doesn't work. For example, during the recent Watches & Wonders 2021 exhibition in Geneva, Rolex announced the launch of a new generation of several watch lines, including the beloved Daytona. Immediately there was an assumption about the corresponding termination of production of the most popular Daytona with a green dial, the so-called John Mayer Daytona. It seems to be logical. But no, expectations were not met, the release of John Mayer Daytona continues, there is no benefit from urgent speculation. Quite the opposite ...
Long-term play does not bring quick profits, but the risks are significantly less. So it's up to you and only you.

Long-term investments

As already mentioned, the risks are less. True, patience is required, the costs will not pay off immediately - but the range of possibilities is much wider. Let's try to outline some of them, albeit very tentatively.

  1. It is worth looking closely at the steadily popular models of popular brands. The works of such manufactories as, for example, Patek Philippe, Rolex, Omega, IWC, ORIS are always in price and always in demand, and watches from such collections as the same Patek Philippe Nautilus, such as the Rolex Explorer, Omega Seamaster, IWC Big Pilot, Blancpain Fifty Fathoms - even more so. Chances are high that by choosing this tactic, sooner or later you will return the investment with interest.
  2. Models produced in limited editions are naturally attractive for investments: they have not been on the primary market for a long time (as they say, full sold-out), in the secondary market they are, accordingly, quite expensive, but it is far from excluded that they will continue to grow in price. Of course, anything can happen, the market may temporarily sink, but, firstly, it is important to catch the moment of "sinking" - to buy cheaper, and then patiently wait for a return to the global trend - in order to sell at a higher price. Examples of such limited edition models include TAG Heuer Carrera Green, Omega Speedmaster Professional “Silver Snoopy Award”, Zenith Defy 21 Land Rover Edition, A.Lange & Söhne Zeitwerk Decimal Strike ...
  3. The situation is almost the same with the products of the so-called niche brands. These small ateliers are usually independent, some of their founders are members of the AHCI - Académie Horlogère des Créateurs Indépendants (Academy of Independent Watchmakers). Many watches from this segment are close to technical and aesthetic perfection and are very original conceptually. Due to the very nature of "small" editions of their watches and the rate of release are very low, because this is not an industrial production, much is done here literally by hand. So the investment attractiveness is undeniable, but there is also a significant difference from the limited collections of large companies: watches should be purchased directly from manufacturers, and not on the secondary market. True, you will have to place an order and wait for your turn, sometimes lasting months ... but, most likely, it will be worth it. It makes sense to pay attention to such brands as FPJourne, Kari Voutolainen, Svend Andersen, Philippe Dufour, MB&F, Urwerk, ArtyA, Konstantin Chaikin.
  4. A similar group is the new masters. Among them there are those who are rapidly progressing, seeking public recognition, and it is logical to expect that their creations will also grow well in price. Let's call for example Ming, Laventure, Aquastar, Unimatic.
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Why now

Yes, we believe now is the right time to invest in a luxury watch. Why? The point is in the general economic situation and in the concrete one in this and similar markets. The period of the pandemic and a number of political crises is marked by the aforementioned subsidence in demand and, therefore, prices. You can buy! At the same time, there is firm hope for the restoration of the general long-term trend: in general, everything is becoming more expensive, and luxury goods, rarities, vintage editions - especially, the rate of growth of their prices is higher than the rate of inflation.

Of course, nothing can be guaranteed, but there is a reasonable hope. However, once you buy one or even more of such great things as an investable watch, would you want to part with it later? We know for sure - by the clock a person, as they say, sticks with his soul ... Well, however, this is certainly up to you to decide.

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