Insights

Exclusive watches can be used as an alternative investment. This guide answers the most important questions about investing in timepieces.

For many people, exclusive watches are not just a tool for measuring the passage of time, but also a fashion accessory and a status statement. Increasingly, watches have also gained significance as an alternative asset class. In this guide, moneyland.ch answers the most important questions about investing in watches.

How are watches interesting from an investment perspective?

Some investors consider watches to be a reliable asset for achieving capital gains. According to the Knight Frank Luxury Investment Index, the value of fine watches has increased by 147 percent over the past ten years. Additionally, the prices of luxury watches have, in the past, been relatively unaffected by fluctuations in the stock market. During the coronavirus pandemic, for example, the prices paid for certain watches on the secondary market experienced exceptional increases.

What are the risks of investing in watches?

Because the right timepieces have the potential to gain in value, they can be used as one component in a diversified investment portfolio. The rule that higher potential returns come with higher risks applies to investment watches as well. Additionally, investing in luxury watches requires large amounts of capital. There is no guarantee that the value of a watch will increase. Before you invest in watches, you should either have a founded knowledge of the watch market, or you should consult with reputable experts. Ideally, you should enjoy collecting fine timepieces, so that you can still benefit from your watches even if you are unable to sell them at a profit.

Which watches are in demand?

If you want to invest in watches, you should look for models that are outstanding from a technical perspective and timeless from a fashion perspective. Watches which depend on fashion trends for demand are not suitable for long term investments. The watches listed below have historically been in strong demand over long periods of time:

• Rolex Daytona

• Rolex Submariner

• Tag Heuer Carrera Calibre 6

• Panerai Bronze

• Omega Speedmaster

• Jaeger-LeCoultre Reverso

• Audemars Piguet Royal Oak

• Watches from A. Lange & Söhne

• Patek Philippe Nautilus

Vintage watches are also popular among investors. These are popular watches that are no longer manufactured. In this case, the investment value depends on limited supply to drive up the watch’s value. The Rolex Daytona Paul Newman John Player Special Dial is one example of an investment-grade vintage watch. According to the Knight Frank Luxury Investment Index, watches of this make gained in value by 571 percent between 2013 and 2023.