People new to the market often ask us. Why invest in a luxury watch?
Here’s the most straightforward answer:
Let’s say you had £5200 to invest.
With that amount of money, you could have bought a Rolex Submariner 2014.
Today (only four years later) you could sell that same watch easily for £6200.
RRP.
That’s a 20% increase on one watch in just four years.
Compare that with the lousy 2% interest rate your bank offers, and you’ll see why many people choose the time-keeping industry to invest.
Within four years you’d have £5,632.72 in the bank versus the £6200 on your wrist.
In this week’s post, we’ll be diving deep into five reasons why to invest in a luxury watch.
This is what we tell our clients who want to make their first timepiece investment.
Why invest in a luxury watch? 5 Reasons
Please note: while we love sharing our passion and knowledge of the watch industry, we highly recommend seeking professional advice before investing in any large purchase.
1. To make money
We have no problem saying it.Investing in watches is a great way to make money, especially if you already have money lying in a dead savings account.
You see, since the 70’s, the price of a stainless steel Rolex has never depreciated.
Ever.
That’s because the demand for specific watches far exceeds the rate of production (this is one of the main reasons why luxury watches are so expensive.)
One factor behind this is that it takes 500 hours to make a single Rolex wristwatch.
Scarcity always creates value.
The market for luxury watches is no different and as a result, the prices go up.
It’s got to the point where specific models have a six-year waiting list if you try to buy them directly from Rolex.
The solution for people who want the watch sooner is to pay a premium to fast-track that process or buy from someone else.
Once Rolex sees the prices go up on the market, they increase their own RRP to follow the rise.
This is why the prices continue to rise and rise, because the market determines the rate.
2. To have a portable asset
For individuals who like to have fast access to their assets, a luxury watch is a fantastic investment opportunity.The nature of the market makes it possible to sell a watch fast.
They are flexible assets that can be converted back into cash quickly and safely. Plus:
You can insure a Rolex.
You can’t insure cash.
On top of this, there are few assets that the investors get to participate in the pleasures of while still making a profit.
For example, unlike luxury cars that depreciate with use, a watch can be worn every single day and still be sold for a profit.
That means you can enjoy all the benefits of wearing a luxury watch every day while still making a profit on it.
3. To celebrate a milestone
(Even if owning a Rolex is the milestone itself.)After professional boxer Ryan Burnett won his second world-championship belt, he bought a gold Rolex Skydweller with CHAMP CHAMP engraved on the back.
But it’s not just for boxing world champions…
We’ve worked with couples who acquired a matching set of luxury watches to celebrate a new marriage and others who are celebrating 50 years together.
These individuals wanted to mark their milestone with a luxury watch because they know it will always act as a reminder of that significant moment.
(And tell the story of it for years to come.)
But other people we know have a different idea.
Our taxi driver last week said it was his ambition to own a Rolex by the time he’s 50.
Our intern hopes to do it by the time she's 30.
You see for many, owning a luxury watch is a milestone in itself.
Something to work towards.
Somethings to celebrate.
Something to be proud of.
At Pride and Pinion, we think that's as good a reason as any to invest in a luxury timepiece.
4. To invest in your style
“A watch is the only legitimate piece of jewellery a man can wear.”(Or at the very least it’s the only piece of jewellery he’s expected to wear.)
You see, the right watch can have a significant impact on your style, personality and persona.
For centuries, timepieces have been viewed as symbols of sophistication and speak of an individual's character.
Luxury wristwatches have been present for some of the most significant moments of history and worn by pioneers of discovery in almost every single industry, from space exploration to negotiating peace in the middle east.
Time pieces are objects that make up a signature part of an individuals style and persona.
They tell stories.
They can also become part of yours.
5. To leave a legacy
Wristwatches don’t just help us record and keep track of time. They also contain the history, memories, stories and legacy of those who wear them.To paraphrase one of Patek Philippe’s iconic mantra: 'You never actually own a luxury watch. You merely look after it for the next generation.'
That’s because high-quality watches are built to last and are designed to be passed down from generation to generation.
They are symbols of the people who own them.
They also tell their story of them once they're gone.
How we can help
At Pride & Pinion, we have access to watches that tell the tales of specific eras, significant events and noteworthy individuals.No request is outside of our reach within in the industry… no matter how specific or unique.
In the past, we have sourced watches with an individual's birth year, exact serial number and watches that were present during a monumental event in time.
We take delight in connecting our clients with the pieces that tell a story and with watches that in turn will tell their own someday.
Ready to take the first step?
Whatever your reasons are for investing in a luxury watch, our world-class team are experts in matching the right device, to your needs and desires.Take the first step today and contact us to see how we can be of service.