Are Luxury Watches a Good Investment? Value and Risk Explained
A luxury watch can be enjoyable to own and may retain some of its purchase price, but it is not a guaranteed investment. Prices can fall, a sale can take time and the amount a buyer offers may be below an advertised asking price. Our original 2020 article overstated the certainty of future returns.
Collecting and Investing Are Different Goals
If you are buying a watch to wear, design, fit and condition may matter more than resale. If future value matters to you, separate the pleasure of ownership from the financial outcome. A watch does not produce regular income, and enjoying it does not mean it will make a profit.
The earlier article claimed that used watches would not lose further value, that prices usually recover within five years and that a fixed percentage of watches become profitable. Those statements were unsupported and have been removed.
Why Famous Auction Results Can Mislead
Paul Newman’s own Daytona sold at Phillips in 2017 for $17,752,500. That result involved a particular watch with exceptional provenance; it is not a forecast for an ordinary Daytona. The original article incorrectly attached a $200 purchase story to the sale. See the Phillips auction record.
Less famous watches can also sell above or below expectations. A single result, especially one involving a celebrity or a rare prototype, is not enough to establish a reliable return for an entire collection.
What Affects Resale Value
- The exact reference and configuration, not just the brand.
- Condition, service needs and the presence of replacement or custom parts.
- Documentation, provenance and completeness.
- Current demand and the prices at which comparable watches actually sell.
- The difference between a dealer’s retail price and purchase offer.
Scarcity only helps when there is a buyer who wants the watch. A discontinued reference or a limited production claim does not automatically create demand.
Account for Ownership Costs
Servicing, repairs, insurance, shipping and selling fees can change the outcome. Compare like for like examples and distinguish completed sales from optimistic listings. A preowned purchase may offer a different starting price from a new watch, but either can lose value.
A More Useful Buying Approach
Set a budget you can afford, choose a watch you understand and review its records before buying. Keep documentation and ask how alterations might affect future sale or service options. The Rolex, Patek Philippe, AP and other watches in the original gallery are examples of different styles, not a ranked investment portfolio or a promise of returns.
Contact Diamonds By Raymond Lee in Boca Raton to ask about current pieces, appointments and service options.
Original Photo Gallery
