Investing in luxury watches is an increasingly popular way to diversify your portfolio while enjoying the beauty and precision of these works of art. However, not all watches are suitable as investments; it is important to choose the right brands and models that have the potential to grow in value. Some of the best known and most highly regarded brands include Rolex, Audemars Piguet and Patek Philippe.
Why Invest in Watches
Value Stability: luxury watches from reputable brands tend to maintain their value or even increase in price. They are produced in limited quantities, and their quality and prestige ensure continued interest from collectors and investors.
Physical Property: Unlike shares or other financial assets, a watch is a physical asset that you can wear and enjoy.
Growing Demand: Increasing interest in luxury watches in global markets, particularly in Asia, is ensuring a steady growth in demand, further pushing up prices.
How to Choose the Right Watch
Not all watches have investment potential. It is important to look at a few key factors when making your choice:
Make and Model: Brands like Rolex, Audemars Piguet and Patek Philippe are known for their value growth. Some particular models, such as the Rolex Submariner, Audemars Piguet Royal Oak and Patek Philippe Nautilus, are particularly prized.
Limited Editions: Watches produced in limited quantities or special editions have a higher potential price increase due to their rarity.
Condition and Completeness: Watches in perfect condition, ideally with original box and documentation, are more attractive to collectors and have a higher value.
History and Provenance: Watches with a rich history or that have belonged to famous personalities can have a significantly higher value.
Examples of Price Growth
Rolex Submariner
The Rolex Submariner is an iconic model that has long enjoyed huge collector interest. For example, the Rolex Submariner Reference 16610 had a retail price of around $5,000 in 2005. In 2023, the same model in good condition was selling for more than $12,000.
Audemars Piguet Royal Oak
The Audemars Piguet Royal Oak, especially the Royal Oak Jumbo model, is another highly prized model. In 2010, the Reference 15202 model had a retail price of around $20,000. In 2023, its secondary market price reached up to USD 85,000.
Patek Philippe Nautilus
The Patek Philippe Nautilus is a symbol of luxury and exclusivity. The Reference 5711 model had a retail price of approximately USD 30,000 in 2010. In 2023, its market price exceeded USD 150,000.
Chart:Watch Value Growth
To better illustrate the growth in the value of the watch, here is a chart showing the price trend of the Rolex Submariner
Rolex Submariner - Rates at Authorized Dealers (2000-2024)
Year Price at authorized dealers (USD)
Rolex Submariner - Secondary Market Prices (2000-2024)
Year Secondary market price (USD)
Stable growth: As we can see, Rolex Submariner prices at authorized dealers have steadily increased over the years. The original price in 2000 was around $3,850 and in 2024 it is $10,250.
Secondary market: Secondary market prices are also showing significant growth, often exceeding those of authorised dealers. This growth has been particularly evident in the last few years, when demand has outstripped supply.
These charts show a clear increase in the value of Rolex watches over the last 24 years, both in A.D. and the secondary market, confirming their potential as an investment.
As you can see from the table and chart, Rolex Submariner prices have steadily increased both at authorized dealers and on the secondary market. Investing in a Rolex Submariner has been very profitable, especially in recent years when secondary market prices have far exceeded original retail prices. This trend is a testament to the high demand and exclusivity of the Rolex brand, making this watch not only a beautiful accessory but also a solid investment.
Investing in luxury watches can be a profitable way to diversify your portfolio while owning beautiful and prestigious items. The key to a successful investment is carefully selecting the right brands and models that have the potential to grow in value. Brands such as Rolex, Audemars Piguet and Patek Philippe are proven choices for investors seeking long-term value and stability.
