Thanks to their refinement and reputation, the most prestigious watches offer a wide range of return opportunities for discerning investors. These horological masterpieces provide a high return on investment, but it’s crucial to determine which watch is the best investment before committing to a particular model.
To the novices, check out our investment guide on starting and maximizing a watch collection.
Investing vs. Collecting: Understanding the differences
Whether collecting watches or investing in them, both approaches require in-depth knowledge of brands, markets, and models. However, the intentions of investors and collectors differ significantly. Investors are primarily motivated by speculation, aiming for financial gains. Collectors, on the other hand, have a profound passion for watches, driven by the desire to admire and wear them. In this respect, the niche world of watchmaking and auctions in Paris is full of treasures.
Reason or passion?
Investors buy watches hoping their value will appreciate over time, and they don’t necessarily wear them. Many prefer luxury watches, rare or limited edition models, aiming for short- or long-term investments that will yield substantial returns.
Collectors, however, are more attached to specific brands, periods, or the history of the objects. They build their collections over the years, often intending to pass them down to future generations.
Can investing and collecting be reconciled ?
Investing and collecting don’t have to be mutually exclusive. Collectors should consider the potential profitability of their watches, while investors can appreciate the emotional value of these timepieces, seeing them in a new light. Starting a watch collection and making it profitable is not something you can improvise. Whether you’re a novice or a seasoned investor, authentication and maintenance are paramount. Only the best strategies will enable you to buy and sell watches profitably.
3 Criteria to determine if a watch is a good investment
From the quality of its manufacture to its resale price on the secondary market, several criteria determine whether a watch represents a profitable investment.
1 – Durability and Manufacturing Quality
The precision and refinement of watches made by the world’s most renowned watchmakers are unrivaled in terms of manufacturing quality. From their mechanisms to their designs, the most coveted models showcase exceptional craftsmanship.
Investing in a watch means paying close attention to its manufacturing quality and durability. A timepiece featuring superior materials and horological complications remains in excellent condition and increases in value, making it a secure asset with a potentially high return on investment.
A gentleman is as much in need of a constume as he is of a splendid watch.
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2 – Model and brand exclusivity
Investors seek out the rarest masterpieces. Brands like Rolex, Patek Philippe, Vacheron Constantin, Omega, and Richard Mille symbolize watchmaking excellence. The exclusivity of a model and the reputation of a brand are essential in determining a watch’s investment potential.
The rarer and more difficult a watch is to acquire, the more attractive it is to investors. Consider models produced in limited editions, those with rare complications, commemorative pieces, special collections, or unique collaborations.
3 – Historical Performance on the Secondary Market
Brands such as Rolex, Patek Philippe, and Omega are known to appreciate in value on the secondary market. Iconic models have seen their prices soar at auctions. To secure your investment and make an attractive profit on resale, consider the historical performance of watches on the secondary market.
Choose models whose appreciation in value has been consistent over the years. To make the right choice, look at recent trends, auction records, and the market value of models that interest you.
5 Iconic Watches Considered Excellent Investments
From affordable models to luxury timepieces, here are five iconic watches worth investing in.
1. The Nautilus by Patek Philippe
Though the Nautilus didn’t gain immediate success when it launched in 1976, its value has steadily increased over the decades, often surpassing its initial auction price. This luxury timepiece embodies watchmaking excellence with its octagonal case design, inspired by a ship’s porthole, and its stamped horizontal relief dial. Its limited production run and elegant sporty styling make it a potentially lucrative investment.
2. Girard-Perregaux’s Laureato 42 Infinity Edition
The 188 pieces of the Laureato 42 Infinity Edition have been highly sought after since their launch in 2020. Due to the rarity and watchmaking quality of this model, resale prices have risen by an average of 30%, enhancing the exclusivity and desirability of this luxury timepiece. Unlike other models, this limited edition features a deep black onyx dial, giving it a sophisticated design.
3. Rolex Daytona
With its iconic design, the Rolex Daytona remains an attractive financial investment. Launched in 1963, it ranks among the most elegant luxury watches. It gained investor attention thanks to actor and racing driver Paul Newman, who proudly wore it. This chronograph watch was dedicated to motor racing enthusiasts, featuring a tachometric scale originally designed to measure average speed. Vintage or contemporary models, combined with Rolex’s unrivaled reputation and strong market demand, offer high potential for added value.
4. The MRO1 from Baltic Watches
Combining retro inspiration and watchmaking quality, the MR01 from Baltic Watches has been a runaway success. This model features a sleek design and sophisticated dial, along with a mechanical movement equipped with a micro-rotor, visible through the caseback. The young French brand stands out for its attention to detail and affordable prices, under €2.000. Produced in limited quantities, the MR01 attracts enthusiasts of unique timepieces with high appreciation potential. Consider this model if you want to invest in a quality watch at an affordable price.
5. Omega’s Speedmaster First Omega in Space
A tribute to the first Omega carried into space by astronaut Wally Schirra in 1962, this model faithfully reproduces the design of that era. It features a 39.7 mm stainless steel case, a sleek black dial, and a robust, precise mechanism. The Speedmaster First Omega in Space appeals to both investors and collectors due to its direct link with space history and its fidelity to the original timepiece. As Omega ceased production of this model in 2021, acquiring this emblematic timepiece at a reasonable price can yield a rewarding investment.
From emerging brands to prestigious houses, investing in a watch remains a smart strategy. By considering criteria such as model exclusivity and manufacturing quality, you can identify the watch that offers the best return on investment. And don’t forget to enjoy the pleasure of owning these horological masterpieces!
