Watch collecting, or horology if you prefer, is becoming increasingly popular.
Watches are beautiful, intricate devices, handmade from precious and natural materials.
But are watches a good investment?
That’s a slightly more complex question but one we’ll help you answer here.
We’ll talk mostly about the pre-owned or secondary market.
This is where most watch investors shop, because it’s where the best value can be found.
Of course, all resales are of by definition of pre-owned watches.
The value and price of watches
How do you know what your watch, or the watch you want to buy, is worth?
Pre-owned watches are worth what someone will pay for them.
And quite typically this means what someone will pay for them at auction.
With a very few exceptions, such as bespoke watches made for individuals, as prizes or gifts, and prototypes and other production watches, all watches will have had a list price as new.
This is the starting point for your valuation.
Let’s look at an example from the most collectible brand, Rolex.
Good looking and very in demand, the Rolex Cosmograph Daytona is a good bet for investment buyers.
One of its best known models (called a reference) is the Cosmograph Daytona.
On the Rolex website I can find that watch, Reference 126509 with a 40mm white-gold Oyster case, a fixed bezel with engraved tachymetric scale, also in white gold. The movement is a self-winding, perpetual, mechanical chronograph. It is water resistant to 100 metres. The dial is of bright black and steel.
The UK retail price is £37,200.
Now, let’s look at a resale site where I find a 2023 reference 126509, in white gold, with - as far as the listing goes - every detail the same. It’s supplied as new, with the box and all the paperwork, and it will cost you…
£42,000.
This is scarcity in action.
Popular watch references are in short supply. They can go up precipitately in value in a very short period of time.
This unusual, very limited edition watch went up over 200% in one 12-month period.
Limited or special editions, and any watch model or reference that is discontinued (or even rumoured as set for discontinuation) may see this big, quick boosts.
This is nothing like a vintage watch, it’s a brand new one commanding a premium because buying from a reseller is the only way a buyer can get their hands on one.
How will that watch do in the long term?
The records suggest it will hold its value well.
Daytonas are a highly popular and highly collectible watch.
Rare models feature on the lists of most-valuable timepieces ever sold.
The $17.5 million paid for a model owned by Paul Newman is a special case, in lots of ways, and not open to most buyers.
But, the reference more broadly might be a good bet for watches that hold or increase in value.
A modicum of research will give you a good list of classic references and models that are likely to hold their value.
Rolex Daytona. Omega Speedmaster. Patek Philippe Nautilus.
Omega Speedmasters are an acknowledged classic, they'll never go out of style.
Just three examples of very classic watch styles that you could build a whole collection around.
The watch market as a whole
The secondary watch market saw explosive growth around 2021 to 2022.
You can speculate as to why.
It coincides largely with COVID causing lockdowns in many places.
Alternative investments, particularly portable, easily liquidated assets like precious metals, watches and even stamps do well in times of uncertainty.
There’s been something of a correction since then.
But watch market tracking sites still show an increase in value of around 6% from 5 years ago.
These trackers use an index of watches.
How these are compiled will have an effect on the market, and they are averages.
All sorts of variables play into a watch's value, including where and when you sell it - for example, Breitling watches are particularly sought after in Germany.
Recent auction reports, as well as listings like the one we discussed above, suggest that the very top end of the market is still in record-breaking form, and that the right buys will continue to make money in the long term.
This Rolex "split seconds" watch is so rare it's called a "unicorn". Just 12 were made.
For example, in April 2024 a Rolex “split seconds” Ref 4113 went for $3.5 million, $1.1 million more than the previous best price from 2016.
That was an extremely rare, specialised watch. And these references continue to soar in value.
References like the Daytona cannot be made fast enough to satisfy demand. Another great sign for collectors.
Watch brands that are a good investment
Very specialised watches are doing well.
Some, are very limited and unique pieces made by boutique brands or even individual watchmakers.
A small set of brands have something like a mass-market presence and are also considered good investment buys.
They are:
- Rolex
- Omega
- Tudor
- Seiko
- Patek Philippe
- Breitling
- TAG Huer
- Audemars Piguet
- IWC
- Vacheron
- Constantin
- Cartier
- Grand Seiko
These are the brands that are most bought by serious collectors.
And of these Rolex and Omega are massively more bought than the other brands.
That’s because they are collectible, but they’re also more available than, say, Audemars Piguet or Cartier, which are made in extremely limited numbers.
You won't find this Vacheron Constantin watch in many high street stores.
You don’t need to limit yourself to these names though.
Even Swatch, a very mass market brand, designed to be collectibles (such projects rarely produce real value for buyers) has produced models that go for 10s of thousands of dollars.
And, we’re now entering a digital age.
How does the wearable tech era fit in for watch collectors and investors?
What will the most valuable Apple watch prove to be?
Prices being realised for standout models of iPhones and games consoles suggest smart buyers might consider a (boxed, unused) smart watch purchase for their portfolio.
Watch collecting fundamentals
Watches follow the fundamental rules of all collectibles.
That means that their value is very dependent on rarity, quality and condition as well as any special extras.
It also means that provenance is vital.
With watches, the addition of official documentation (boxes, guarantees, service history) adds enormously to the resale value of a watch.
The box, accessories and documentation help keep the price of this Rolex Submariner high and rising.
If it does have some special connection with a celebrity or a sports team then it needs to be evidenced. Ideally, photographically.
Buying collectible watches as an investment today
Collectibles are increasingly considered an alternative or supplemental investment by high-net-worth individuals.
They can produce good returns.
But best of all they are something one can indulge in passionately.
Very few people would suggest someone invest their entire fortune in watches. But certainly a share of your wealth can safely and profitably be dedicated to collectible watches.
But probably the best advice for watch buyers is to follow your passions and learn your subject.
Watches are beautiful, intricate, specialised, delicate... perhaps the greatest matching of form and function in human history.
So dive in. An informed buyer will always make the best decisions.
Buying rare investment watches today
We trade in luxury watches.
And we do it because we love them.
If you’re looking to buy then take a look at our store, here.
We can also help you find the best price for luxury pre-owned watches that you own. We have good connections with buyers and know who is looking for what.
Just get in touch.
It only takes a second.
