Investing in Watches and Jewellery
A free guide to investing in Watches and Jewellery
Investing in watches and jewellery
The rare watch market sprang into life in the mid 1990s, when pocket watches were replaced by stylish wristwatches as the favoured collectible.
In contrast, the jewellery market is one that dates back centuries (perhaps millennia) and is a well-established investment area.
Despite the difference in age, both areas are now underpinned by a large, dedicated demographic of wealthy investors, with a number of watch and jewellery auctions regularly taking place in major cities across the world, particularly Hong Kong and New York.
It should be noted that, unlike watches, modern jewellery intended for the consumer market is not likely to hold its value. Paul Fraser Collectibles recommends placing your money with an item with history, such as the high-profile, record-breaking jewellery of Elizabeth Taylor.
The majority of rare watches are made from precious metals, and there is a long-established hierarchy. Generally this goes platinum, white gold, rose gold, yellow gold and stainless steel. However, some vintage watches that are made of steel are very rare and override this.
Watch brands to consider for investment include Patek Philippe, Jaeger LeCoultre, Cartier, Rolex, Omega and Longines.
Reasons to invest
Growing demand: 70% of the world's wealthy individuals polled for Barclays' 2012 Wealth Insights report own precious jewellery, up from 57% in 2007, making it the most popular of any treasure asset. This increased demand is prompting values to grow.
Both jewellery and fine watches are considered as status symbols in emerging economies, particularly the BRIC countries, who are fast become the world's most avid collectors. Investing in these areas provides the perfect opportunity to capitalise on this new wealth.
Limited supplies: High-end watch brands usually produce limited edition runs of less than 100, guaranteeing that your chosen piece will only become rarer as time passes. Similarly, jewellery with a fascinating story is valued for its provenance, as well as its beauty, and even an identical piece cannot match its rarity.
Low-cost upkeep: Jewellery is among the most resilient of collectibles, seldom deteriorating with age and requiring little in the way of care to hold value.
Open to all: While the most valuable watches and jewellery pieces command millions at auction, the market also has some fantastic entry-level opportunities, enabling the cautious investor to test the water before taking the plunge.
A ring that once belonged to Jane Austen sold 408.1% past its estimate in a July 2012 auction, achieving an impressive $236,250. What's more, the ring was not even made out of valuable materials.
The "Clark Pink" set a world record for a pink diamond at auction, selling for $15.7m in April 2012 - a 96.2% increase on its pre-sale estimate.
Elizabeth Taylor's jewellery collection sold for $115.9m in 2011, smashing numerous world records in the process.
One of the finest modern watches, the Jaeger LeCoultre Reverso Gyrotourbillion 2, proved its popularity by selling for $242,400, 21.1% above its high estimate, in August 2012.
An Omega watch that once belonged to Elvis Presley soared past its estimate to achieve a 162.5% increase in June 2012, selling for $52,500.
A Patek Philippe two-crown world-time reference 2523/1 made $1m in June 2012, setting a new world record for the reference.
Contact us for further information on investing in watches and jewellery on +44 (0) 117 933 9500 or email@example.com
View our watches for sale here.
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