Choosing Luxury Watches as Investment: What You Need to Know

The Ultimate Guide to Luxury Watches as Investment

Investing in luxury watches can be a wise financial decision, as many models have appreciated in value over the years. This article explores the factors that contribute to a watch's investment potential, such as brand, model, condition, and rarity. It also highlights a few specific luxury watches that have consistently held their value or appreciated over time.

By Ivan Lian

Venturing into the world of luxury watches is akin to embarking on a journey, one where time is measured not just in hours and minutes, but in the subtle nuances of craftsmanship and the enduring allure of style. But like any journey, plotting your course carefully is crucial. Not all watches are created equally when it comes to holding their value; some stand as steadfast investments, while others fade into the background. As you navigate this horological landscape, consider a few guiding stars to steer your way:

Brand: In this constellation of timepieces, the most prestigious and renowned watch brands shine the brightest. Rolex, Patek Philippe, Audemars Piguet, Omega, and Jaeger-LeCoultre are celestial names that tend to retain their luster in the investment sky.

Model: Among the stars, some models burn with a more intense and enduring brilliance. Take, for instance, the Rolex Submariner and Daytona—these two celestial bodies are among the most coveted and sought-after in the vast expanse of luxury watches.

Condition: Just as the night sky reveals its beauty in the clarity of a moonlit night, the condition of a watch plays a pivotal role in its value. A watch in pristine condition gleams like a well-polished gem, commanding a higher worth than its worn counterparts.

Rarity: In this universe of timekeeping, rarity is a comet's tail of value. Limited editions and watches that have ceased production often sparkle with a unique allure that collectors find irresistible. The waiting period associated with purchasing some of these timepieces from retail stores can range from several months to years, intensifying the desire for these coveted pieces, driving willing enthusiasts and collectors to pay a premium for them in the aftermarket.

Now, let's set our sights on a few celestial examples—luxury watches that have not only held their course but have appreciated in value. These watches are the constellations of your investment journey.

Rolex Submariner

The Rolex Submariner, a legendary timepiece in the horological world, stands as a testament to precision, durability, and unwavering reliability. Renowned for its exceptional water resistance, this iconic watch was the pioneer in achieving the remarkable feat of being certified water-resistant to an impressive 100 meters. Professional divers and intrepid explorers have trusted the Submariner for decades, making it an indomitable presence beneath the waves. Beyond its functional prowess, the Rolex Submariner proves to be an astute investment choice. Over the years, it has consistently appreciated in value, promising a prosperous future for its owners. For instance, a Rolex Submariner 116610LN, purchased for $7,500 in 2013, has now burgeoned in worth to exceed $15,000. This remarkable surge signifies the enduring appeal and value of the Rolex Submariner.

Rolex Daytona

The Rolex Daytona, a timepiece deeply intertwined with the world of motorsport, encapsulates the essence of iconic design and precision. Originally conceived for professional race car drivers, the Daytona has graced the wrists of legendary figures such as Paul Newman and Steve McQueen. Its rich history and timeless style make it a covetable choice for watch enthusiasts and collectors alike. Investing in a Rolex Daytona proves to be a decision that accelerates your financial portfolio. The value of a Rolex Daytona 116500LN, which was obtainable for $11,300 in 2016, has surged to surpass $30,000. This phenomenal appreciation, amounting to over 260%, underlines its status as a wise investment and a true automotive icon.

Patek Philippe Nautilus

The Patek Philippe Nautilus is an embodiment of luxury within the realm of sports watches, distinguished by its avant-garde design and masterful craftsmanship. As one of the pioneers in creating luxury sports watches with stainless steel, the Nautilus has captivated the hearts of collectors and connoisseurs for generations. In the world of investments, the Patek Philippe Nautilus stands as a prime example of astute decision-making. A Patek Philippe Nautilus 5711/1A-001, acquired for $23,000 in 2015, has burgeoned in value to surpass an astonishing $100,000. This remarkable appreciation underscores its position as both a symbol of opulence and a smart financial choice.

Audemars Piguet Royal Oak

The Audemars Piguet Royal Oak, characterized by its audacious design and impeccable craftsmanship, takes its place among iconic sports watches. This horological masterpiece was at the forefront of luxury sports watches, showcasing stainless steel construction and an integrated bracelet, long before it became a trend. Investing in the Audemars Piguet Royal Oak is akin to holding a piece of horological history. For example, an Audemars Piguet Royal Oak 15400ST.OO.1220ST.01, purchased for $17,000 in 2013, has appreciated to over $30,000. The Royal Oak's value surge reflects its stature as an emblem of elegance and financial prudence.

Omega Speedmaster

The Omega Speedmaster is a chronograph watch that is known for its association with space exploration. The Speedmaster was the first watch to be worn on the moon, and it has been used by astronauts on every NASA mission since 1969. It is also a good investment, but it has not appreciated in value as much as some other mentioned models. For example, an Omega Speedmaster Professional Moonwatch that was purchased for $5,500 in 2016 is now worth over $7,000. This represents an increase in value of over 25%.

Mastering the World of Luxury Brand Investment

Within the world of luxury watches, understanding the role of marketing is essential. This specialization delves into the intricacies of marketing within the luxury industry, offering valuable insights for enthusiasts and collectors alike. Through guest lectures and compelling case studies from esteemed partner companies, students gain access to critical skills that empower them to identify opportunities for market expansion and the creation of potential new luxury products. If you're passionate about the world of luxury and seek to combine your love for it with a comprehensive education, consider HIM’s Bachelor of Business Administration in Hospitality Management with a specialization in Luxury Brand Management. This is journey could lead you to a fulfilling and prosperous career in the realm of luxury. Explore more about this program here.

Interested in a Business Administration degree with a specialization in Luxury Brand Management?

Download our brochure

By Ivan Lian

View profile