Timeless Timepieces: Navigating The World Of Watches As An Investment

Investing in a watch is a great way to diversify your portfolio. Vintage watches are a good option, but not all watches are created equal when it comes to investment potential. Brand recognition, demand, and rarity are the three pillars of watch investment.

The most well-known watch investment brands are Rolex, Patek Philippe, and Audemars Piguet. These brands are synonymous with luxury and are known for their quality and craftsmanship. Rolex, for example, is known for its sporty Submariner and Daytona models, which have seen considerable price growth on the pre-owned market. Patek Philippe's Nautilus and Aquanaut watches are also highly sought-after, with waiting lists for the Nautilus stretching up to a decade.

Other brands that are worth considering for watch investments include Omega, Panerai, Vacheron Constantin, Jaeger-LeCoultre, and Breitling.

When it comes to specific models, in addition to the Rolex Submariner and Daytona, the Patek Philippe Nautilus ref. 5711, and the Audemars Piguet Royal Oak are highly desirable. The Omega Speedmaster and Seamaster lines are also good options, with some models increasing in value by 10% over the last three years.

Vintage watches are particularly dominant in the watch sector, and pre-owned watch sellers are almost as popular as auction houses selling blue-chip artwork. When investing in vintage, look for classic pieces that people will always want, such as the Tudor Heritage Black Bay, which combines retro styling with modern functionality.

While investing in watches can be lucrative, it is important to remember that it is not a guaranteed return. The best way to avoid disappointment is to buy watches that you want anyway, that way any profit made is a bonus.

Vintage watches as an investment

Vintage watches are a great investment option, especially given the flourishing luxury second-hand watch market. The vintage watch market has witnessed remarkable growth, surpassing previous records. This growth can be attributed to the increased presence of speculators, resulting in higher watch availability and a significantly higher growth rate compared to the brand-new watch market.

Vintage watches offer a unique proposition as each timepiece is one-of-a-kind, with its own story and history. While a new watch may provide better accuracy and daily practicality, vintage watches offer something different - a piece of history with its own special provenance. Additionally, vintage watches have already gone through their depreciation curve and are likely to start appreciating in value.

Key considerations when investing in vintage watches:

• Research and due diligence: It is essential to conduct thorough research before investing in a vintage watch. Understand the mechanics, materials, details, complications, and the time taken to build the watch.
• Brand recognition, demand, and rarity: These are the three pillars of watch investment. Rolex, Patek Philippe, and Audemars Piguet are often recommended as investment-worthy brands due to their limited supply, long-term focus, and stable or increasing prices.
• Condition and authenticity: When buying a vintage watch, ensure it is in good condition and as original as possible. A reputable vintage watch dealer or retailer can provide transparency and advice on the watch's authenticity and condition.
• Your motivation: Ask yourself if you are motivated by collecting or investing. True collectors prioritise factors such as scholarship, provenance, appreciation, and rarity, while investors focus primarily on the monetary value of the watch.

Recommended vintage watches to consider:

• Omega Cal.30 T2 in pink gold: This 1940s design by Omega is an elegant choice and a great initial investment piece that is likely to hold and increase in value over time.
• Rolex Oyster Perpetual: A Rolex Oyster Perpetual in steel or gold from the mid-1950s to mid-1960s is considered one of the safest investments in vintage watches. It has broad market appeal and is highly esteemed by collectors and investors.
• Omega Seamaster Automatic: The Omega Seamaster Automatic from the mid-1950s to mid-1960s is highly sought-after by collectors, especially those who favour 'tool' watches.
• Universal Genève Space Compax: This chronograph features the same movement as the Rolex "Paul Newman" in a similarly styled case and dial, but at a more affordable price point.
• Longines, Zenith, Vacheron Constantin, Audemars Piguet, and Jaeger-LeCoultre: While these brands have specific models with high collector prices, their other watches offer exceptional value.

Additional tips:

• Buy from a reputable retailer: This is the best way to ensure the authenticity of the vintage watch.
• Consider pre-owned watches: Buying a pre-owned watch before it becomes vintage can be a smart strategy. Once it reaches vintage status, it may appreciate in value, making it easier to break even or profit.
• Strap over bracelet: If funds are limited, opt for a watch with a strap instead of a bracelet, as bracelets can add significantly to the cost, especially if made of gold.
• Diversification: Vintage watches can serve as a valuable diversification strategy, hedging against inflation and economic downturns.

In conclusion, investing in vintage watches requires a combination of passion, research, and financial strategy. By understanding the market, the brands, and the unique characteristics of each timepiece, you can make informed decisions and build a valuable collection.

Rolex

When it comes to investing in watches, Rolex is often the first brand that comes to mind. Its watches have become a statement of wealth and class, making them highly desirable and sought-after. Here are some key reasons why Rolex is a good investment option:

Brand Recognition and Reputation

Demand and Exclusivity

Durability and Functionality

The Rolex Submariner, one of the most popular styles, is known for its durability and sporty finish. It has watertight integrity up to depths of about 300 meters, making it highly coveted by collectors. The Rolex Daytona and the GMT-Master series also offer a combination of style and functionality, making them excellent investments.

Long-Term Value

Specific Models to Consider

When investing in Rolex, there are certain models that stand out:

• Rolex Submariner: With its sporty finish and watertight integrity, the Submariner is highly sought-after by collectors.
• Rolex Daytona: The Rolex Daytona, particularly the reference 6239, is one of the hardest non-limited edition watches to buy at retail. It has seen considerable price growth on the pre-owned market.
• Rolex GMT-Master and GMT-Master II: These watches, designed for international pilots, offer distinctive features and the ability to track multiple time zones.
• Rolex GMT Master II ref. 16710: This second-generation GMT Master II is more affordable than other Pepsi references, but it's only a matter of time before its value catches up.
• Rolex Deepsea Sea-Dweller: The Deepsea was a rare move for Rolex, and its low sales have made it a relatively rare piece. Early adopters have already cashed in on its increasing value.

Patek Philippe

The Calatrava, for example, is the epitome of the round wristwatch and one of the finest symbols of the Patek Philippe style. It is a clean, uncluttered creation and the perfect symbol of the brand's underlying design philosophy. Its value tends to remain strong and predictable, making it a good investment.

The Nautilus is one of the most recognisable shapes in horology and one of the hottest watches globally. It has an iconic rounded octagonal bezel and an embossed dial, epitomising the elegant sports watch since 1976. The Nautilus 5711/1A, introduced in 2006, has become one of the most desirable watches worldwide, with its original price of £25,000 now skyrocketing to over £80,000 in the secondary market.

The Aquanaut, inspired by the Nautilus, was introduced in 1997 as a new line of sports watches with a modern and sporty twist. The Aquanaut 5167/1A-001, featuring a self-winding calibre and displaying the date and time, is particularly collectible.

Audemars Piguet

Heritage and Reputation

Independent Manufacturing

Value Appreciation

The prices of Audemars Piguet watches appreciate over time. According to WatchCharts, the prices of pre-owned and vintage Audemars Piguet watches increased by an average of 43% in one year.

Celebrity Endorsements

The brand's celebrity clientele, including LeBron James, Beyoncé, Jay-Z, Drake, and Kim Kardashian, helps retain its value.

Limited Production

Royal Oak

The Royal Oak, launched in 1972, is one of the most iconic watches in history. Its design is inspired by a traditional diver's helmet, featuring an octagonal bezel secured by visible screws. The Royal Oak has a water-resistant gasket and an exclusive blue tapisserie motif on the dial. With its large diameter and slim depth, the Royal Oak stood out from other watches in the market. A 1970s Royal Oak in good condition is now worth around £105,000, a significant appreciation in value.

Royal Oak Concept Tourbillon Chronograph

This watch is a favourite among celebrities in the contemporary music industry, including Jay-Z, Rick Ross, and Lil Wayne. The front and back of the case are fitted with scratch-resistant sapphire crystal, and it has a water-resistant depth of 100 meters. The most prominent feature is the dial, which comprises the main plate of the calibre 2941 hand-wound movement.

Royal Oak Offshore Chronograph Volcano

The Royal Oak Offshore Chronograph Volcano is the preferred choice of basketball player LeBron James. It blends the classic octagonal Royal Oak bezel with orange accents. The watch has a 42mm stainless steel case, with eight hexagonal screws holding the bezel. It features a black Méga tapisserie dial and bezel, protected by sapphire crystal. It has a 50-hour power reserve and a date display.

Royal Oak Offshore Diver

The Royal Oak Offshore Diver is an automatic timepiece that is water-resistant up to 300 meters. It has a rotating inner bezel with a diving scale and a self-winding movement with a 60-hour power reserve. The Méga tapisserie dial, white gold hands, and hour indicators are coated with luminescent material for visibility underwater.

Code 11.59

Code 11.59 is Audemars Piguet's newest model, combining modern luxury with traditional craftsmanship. It features an 18-karat white gold case and a black ceramic bezel. The bold dial includes the brand's signature blue hands and ultra-thin markers for easy readability.

Millenary

The Millenary Edition is inspired by classic Audemars watches from the late 1800s to early 1900s. It is available in 18K white gold or platinum editions, with a chronometer movement and automatic winding system. The Millenary model has a 42-hour power reserve, and prices start at around $16,000 USD.

Omega

The Speedmaster and Seamaster are Omega's two most popular models. The Speedmaster is Omega's most iconic, legendary, and important timepiece. It is known all over the world and has a huge audience. The demand for the Speedmaster is always high, but particularly for the standard Speedmaster models. The Speedmaster Professional Moonwatch is a classic that will always have demand and has proven to be a good investment.

The Seamaster has been in production since 1948, although its design has changed many times. The Seamaster is an iconic dive watch and is the choice of watch for James Bond. Opt for the classic and traditional Seamaster models.

When buying an Omega watch as an investment, you should consider the material. As a general rule, you should only buy full stainless steel watches. While some full gold, half gold, or titanium watches have proven to be good investments, the large market will always have a preference for stainless steel, so this is where you have the most upside. This will always be the safest bet. Be careful with gold watches, in particular, as the market is much slimmer than with steel, usually because the price for these is much higher, and because not everyone will like gold watches.

• Speedmaster Snoopy Collection: Commemorates the Apollo 13 mission and features astronaut Snoopy art. The black and silver Snoopys sell for around $20,000 while the white one goes for roughly twice that.
• Speedmaster "Ultraman": Pays tribute to the Japanese TV show "Return of Ultraman". The 2018 Ultraman Speedies were a limited edition of 2,012 pieces and sold out in under two hours. Now they go for about a third of the price of the vintage Ultraman models.
• Speedmaster Alaska Project: Based on the Alaska II prototypes that Omega produced in collaboration with NASA. Features a distinctive aluminum heat shield. Sells for over 3x its original MSRP.
• Speedmaster "Ed White" 321: Omega replicated the exact size of the popular vintage "Ed White" Speedmaster reference and even started re-producing the same caliber of movement. Resale prices of the modern "Ed White" are often higher than average-condition vintage ones, even though it's not a limited edition.
• Green Speedmaster (Moonshine Gold): A modern take on the classic Speedmaster with a Master Chronometer coaxial movement and outstanding timekeeping.
• Speedmaster Super Racing: The first Omega watch with the Spirate system, which allows a watchmaker to adjust the watch in increments of 0.1 seconds/day.
• Seamaster Diver 300m No Time to Die Edition: Created to celebrate Daniel Craig's final appearance as James Bond. This watch has a Master Chronometer rating and a magnetic resistance of 15,000 gauss.
• Speedmaster Professional Moonwatch "Sapphire Sandwich": A timeless piece, likely to hold its value well for decades to come.

Frequently asked questions