Investment Watches – Why Buying is Smart

Jan 24, 2022 | Watches

The luxury watch market is in ascendance, with prices rocketing for both new pre-owned models. A recent Deloitte report from October 2021 states that pre-owned luxury watches are increasingly sought-after, with almost one-in-three buyers planning to purchase one over the next year. If you’ve already got a luxury watch that you might be interested in selling, then your smart investment could be about to reward you very well indeed.

Why consider a luxury watch investment?

Buying storing a luxury watch has to be one of the most straightforward investment options on offer. The watch market has grown by around 25%, with demand high, it is the simplicity of the product that is so attractive. Sales have risen because of the certainty associated with the product – unlike crypto – the inherent versatility of having an investment you can hold in one hand. You don’t have to consider storage costs isn’t at the mercy of markets, as with other investments.

A luxury watch sale can have a quick turnaround, which makes it not only a popular investment but one in which you can secure or release your money quickly.

Rolex Daytona

Better than an iwatch?

What sets the luxury watch market apart from the wearable market is their resale performance. Luxury watches brands, such as Rolex, Omega Patek Philippe, are performing so well that it has impacted supply demand. This, in turn, pushes prices higher still.

Fine watches have very limited production runs with some producers only ever making small numbers of each model. With waiting lists for new watches that run into years, luxury purchasers investors are actively seeking out preowned options.

Watch Investments Free From Market Fluctuations

The value of luxury watches remains independent of the world markets. When the world came to a standstill in the first half of 2020, watches held their value while the markets fluctuated. As with other non-market related investments, such as fine wine art, watches are not tied into the markets this has allowed their value to jump up.

Rising Prices in 2022

Life is getting more expensive in general the luxury watchmakers aren’t immune from price rises. Rolex are increasing prices not only to take account of the rise in labour costs higher transportation costs, but also to match the prices that their watches are fetching on the pre-owned market. Such is the high demand for luxury watches that models are often being sold in excess of the retail value. From a brand reputation perspective, it’s in Rolex’s interest to redress the balance. For investors who are seeking to get a solid return on their investment, it’s equally good news. It is not only Rolex. Prices for other luxury watch brands are also on the rise, with Patek Philippe Cartier planning increases for 2022 also.

Bought For Pleasure; Sold For Profit

The opportunity for return on investment in luxury watches is being said to torment owners who know that they have made a savvy financial decision. Rather than holding on to watches that they have waited many years to own, they are weighing up the value of selling them after only a few short months. Make no mistake; they may have bought the watch for pleasure, but they’re selling it as an investment.

Where’s the Catch?

Right now, there isn’t one. It’s important to remember the times that we’re living in. The coronavirus pandemic forced many people to make now keep promises to live differently. If they can invest their money in something more beautiful, fascinating stable than the markets enjoy a better return, then why not go for luxury watches.

Watches are also accessible it’s highly likely that they will generate more than the interest on any money held in your savings account.

As pawnbrokers since 1770, Suttons and Robertsons has witnessed the rise and rise of the luxury watch brand we welcome many luxury makes models for a free valuation in one of our London stores. We also offer valuations online or by phone, so please do call us today to discuss your needs. As prestige watch pawnbrokers, our team of skilled watch experts can transform a luxury watch valuation into a same day loan within 24 hours can offer fast Rolex loans up to £2 million.

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