Does anyone have experience or tips or even thoughts on investing in watches from our precious country
I know its probably not as optimal as the Stock market but maybe it could be something that makes me happy and at least hopefully holds value
I know steel watches tend to hold value better than gold or two tone.
Don’t fall into the trap of buying luxury goods with the reasoning of it being an iNvEsTmEnT.
Yes, some watches increase in price. Yes, you can make money if you get something desirable allocated by an official dealer. But no, you probably won’t outperform the stock market buying a Rolex Submariner that’s still being produced (in masses).
Buy something if you like it and if it gives you a good feeling wearing it. You won’t burn all of your money. You’re right that (depending on the watch) most hold their value at least but you do have some spreads when buying/selling them.
The appreciation of certain models is highly speculative. When you purchase a “rare” model that goes 3x retail price as used, you have 0 chances getting your hands on that model in the store, you will need to have bought 5 other “crap” items or diamonds to be even considered getting the sought after piece. So the only to have profited from the scheme are manufacturers who try to sell the other 9 models in their line-up that nobody wants to buy on account on one super popular model.
A watch can be an investment if bought at the right price, but like with cars, you need to have big network of dealers and collectors to be proposed a correct price, otherwise it will be like entering a legacy auto garage and they pull your pants down by the time you ask if the car comes with rubber mats as standard.
In the previous years, there was so much money flowing around that people didn’t know in what else to invest in. So a huge part of that came in watches. During the 2009-2010 EU crisis years, you could buy most of the “rare” speculative models for a discount. Even in Switzerland. Luxury watches were not mainstream. That changed when a new wave of Chinese collectors entered the market in mid 2010s, but the luxury habits of the rich Chinese seem to have changed, and they are no longer interested in the same numbers as before.
I would buy now or in the near future because prices are going down and while we might not have reached plateau, we might be near it. I would try to get the best price so it can become an investment. You might not succeed, but even if you break even, or lose a bit won’t be that bad as you would have enjoyed a high precision instrument in your everyday ownership.
There are also platforms such as Splint Invest (a Swiss company) where someone else does the duo intelligence. Perhaps easier to start with. But the fees are extremely high.
Thanks for your insightful answer.
If id buy a watch it would probably be a steel rolex anyways which i thought arent very volatile but yeah im not sure if ill really do it.
Why would you, though. I mean what do you want? If you want a nice watch to wear for yourself then go for it, just bear in mind the second the box seal is broken it’s already lost 25% of grey market value.
If you want an investment then…I’d say make sure you’re well positioned in liquid and ideally less speculative assets and then you could think about alternative assets.
I read somewhere that a steel sports model is like having a savings account on your wrist.
It will be more worth what you paid for it and keep it’s value. I am not sure if doubling our money when you buy a Daytona at retail will keep happening.
But hey, an interesting side effect is that you will get comments from other watch nerds and might get to attend events which is pretty cool. I bought at an AD and not in the grey market so I guess your mileage may vary
I wouldnt buy the watch new but rather on chrono
And the first purpose is for my liking but the second one is that yes it holds value or even go up a bit
But of course if i only wanted the most profit i would go this route.
Right, but if you don’t ever intend to sell it then it doesn’t, or shouldn’t matter if it holds its value or not, doesn’t it?
A couple of weeks ago we were in Zurich for the weekend, we browsed the open fleamarket in Bürkliplatz. Among the stalls I spied a “Rolex” for CHF150. Given I don’t know anything about watches I passed it by, reasoning that anyone who does know watches wouldn’t have missed it, and the chance the seller not knowing it was probably a fake is about 0.0001%.
I thought fake Rolex watches are illegal here too? I’ve read of people walking into shops with “grandpa’s old Rolex”, only to be thrown out, threatened with the police being called, or even worse, having the “Rolex” logo ground away because it was a fake? I’d go mental if someone destroyed my property…especially if I had no part in any illegality.
Yes there would be no intend to sell but maybe to trade or lets say something very serious happens and i really need the money i could probably pretty much get my money back when selling. So its also quite secure (certain models!). So i think its the security and also the joy it brings.
And i think you dont have to be scared of getting scammed when you do your research buying and also maybe know someone who has experience in the field, but yeah selling fake Articles is illegal yes.
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