The finer things in life are always sought after, fine wine, rare art, beautiful homes and most assuredly luxury watches. If you're considering whether or not to spend your money (often thousands of dollars) on a luxury watch as an investment, consider the following.
INVESTOR NOTE: Any investment should be made with money that you can afford to lose, never invest the rent or grocery money hoping for a big payday; invest with your head, not your emotions.
If you're a beginner collector, take the time to study the market, learning as much as you can and developing a discriminating eye. When you can learn to look at brand, see the quality (or lack of) study the mechanisms, escapements, dials, bands and bezels, you'll begin to have a true collector's eye.
Depending on your budget (and taste) many collectors advise buying a lesser number of more expensive and exclusive pieces, rather than a quantity of those of lesser value and aesthetics.
VALUE: Most watches (as fine automobiles) lose value once they you walk out the front door of the store. A collector (particularly one with an eye toward investing) will seek out models that retain (or rise) in value over time.
TIP: When you make the choice to put money into watches choose vintage or rare pieces.
Like the stock market, the world of watches can also be speculative and often volatile. Between 2004 - 2008 vintage watches soared and it seemed anyone could make a quick return. That bubble burst (most of them eventually do) and many high prices pieces dropped as much as 50% or more. It's all about timing (as most things financial are) and the world famous Christie's auction house reports the mood is looking up, with many wealthy clients putting their money into watches, rather than the market.
SUCCESS STORY: A 1942 Patek Phillipe sold for $2.77 million at auction, nearly doubling its purchase price.
Entering the Market
Any investment, whether the stock market, real estate or watches requires discretionary funds, however that doesn't mean only the wealthy can invest, there are lower prices opportunities for those with a keen eye.
PROVEN WINNERS:
· Pateks from the 1940s and 1950s (known for attention to detail and unusual design
· Limited edition Audemars Piguet, Breguet, A. Lange & Sohne, Vacheron Constantin
· Independents likes F.P. Journe, Greubel and Richard Mille
The End of Days
Riding on the coattails of fame, "The End of Days" from by Audemars Piguet, produced in conjunction with the movie "End of Days" starring Arnold Schwarzenegger retailed for approximately $14,000 in 1999; one was sold recently for $85,000
Presuming you do find a luxury of value, how long should you wait until you sell? While times and the market fluctuate, a good rule of thumb is 20 years. During that time you can (should you wish) wear your investment or keep it safe and secure in a safety deposit box.
When you buy a luxury watch, you are buying a thing of beauty, craftsmanship, and history. Certainly the piece will always have the intrinsic value of it gold, silver or jewels, but it the sum total of these elements, the watch itself that ticks through the sand of times that provides it true value. It is certainly a time piece but it is also a treasure that is timeless.
The Institute of Swiss Watchmaking has two watchmaking schools, one based in the USA and another based in Hong Kong that provide training courses for students wishing to become a Certified Swiss watchmaker or an encasing technician. If you are interested in fine timepieces, and wish to consider a career as a certified Swiss watchmaker, this is the preferred place, due to the approval of its courses as part of WOSTEP.
Read about what makes Cartier watch tick on one of the websites for which I contribute regularly.
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