When people talk about luxury watches, they often refer to them as investments. But how reliable are they as an asset class? Can a finely crafted timepiece really increase in value?
At Happy Jewelers, we believe the answer is yes. Whether you're passionate about horology or looking to diversify your portfolio, investment watches offer a compelling mix of stability, collectability, and aesthetic pleasure.
In this guide, you’ll learn why watches make excellent investments, how to get started, and which models, including a few under-the-radar independent brands, could be your next smart buy.
Why Buy Investment Watches?
Unlike stocks or cryptocurrency, a luxury watch is something you can hold, appreciate, and even wear (carefully) while it potentially grows in value. Here's what makes investment watches such an attractive option:
1. Tangible Asset
Watches often retain or appreciate in value due to precious materials like gold or platinum. But their appeal goes beyond the metals; they’re wearable works of art.
2. Rarity Drives Value
Limited editions and discontinued models create scarcity. That scarcity drives long-term demand.
3. Tax Efficiency
In the UK, many watches are exempt from capital gains tax. This adds another layer of appeal to watch investment.
4. Portfolio Diversification
Luxury watches help spread risk. They provide an alternative asset class with global resale potential.
Don’t Overlook Indie Watch Brands
When it comes to investment watches, brands like Rolex and Patek Philippe often dominate the conversation. However, independent watchmakers are quietly gaining traction among serious collectors.
Why Indie Watches Make Smart Investments
Low Production Means High Exclusivity
Most independent brands produce only a few hundred to a few thousand watches per year. This level of scarcity adds significant collector value.
Exceptional Craftsmanship
Indie brands are often led by passionate artisans who prioritize innovation and detail. Handmade movements, unique complications, and exclusive designs make these timepieces especially desirable.
Rising Collector Demand
Collectors are looking beyond mainstream names for originality. Independent brands like F.P. Journe, H. Moser & Cie, Laurent Ferrier, and Kari Voutilainen have seen their resale values increase steadily.
Undervalued Opportunities
Many indie brands are still emerging in the investment world. This leaves more room for price growth compared to well-established names that already command premium prices.
A Few Indie Brands Worth Watching:
- F.P. Journe
- H. Moser & Cie
- De Bethune
- Kari Voutilainen
- Ming
Pro Tip:
When evaluating indie brands, look at production numbers, resale trends, and market buzz. Limited supply combined with growing demand often leads to impressive returns.
The Growing Pre-Owned Watch Market
The pre-owned luxury watch market has expanded steadily. Discontinued models, limited editions, and classic references can often only be found on the secondary market.
Recent global events, such as the COVID-19 pandemic and geopolitical unrest, have impacted supply chains and shifted collector behaviors. This has created buying opportunities. For example, once peaking around £150k, the Patek Philippe Nautilus 5711 and 5712 are now available for £90k–£95k. These discontinued models are likely to increase in value again over time.
What Kind of Return Can You Expect?
Returns on investment watches can outperform traditional assets. To illustrate:
- High-end watches have shown up to 12 times the return of silver
- And 4 times the return of gold
Factors That Influence Returns:
- Brand reputation
- Limited production runs
- Overall condition and maintenance history
- Original documentation and packaging
- Market trends and collector demand
- Historical price performance
- Broader economic influences
How Much Should You Invest?
You don’t need to spend a fortune to get started. Many well-performing starter investment watches are available in the £10,000 to £15,000 range. Your initial budget will depend on your goals and how quickly you want to grow your portfolio.
How to Start Investing in Watches
Here’s a step-by-step approach for building your investment watch portfolio.
1. Research the Market
Learn which brands and models hold or increase in value. Study forums, auction house results, and industry news.
2. Make a Watch List
Create a list of specific models you're interested in. This helps you stay focused when shopping.
3. Buy From Reputable Sellers
Choose trusted dealers, authorized retailers, or respected auction houses. This reduces the risk of counterfeit or overpriced watches.
4. Track Market Trends
Watch the resale value of your investment pieces over time. Stay informed about pricing, collector interest, and new releases.
5. Wear Carefully or Store Securely
If you plan to wear your watch, keep it in excellent condition. For pure investment purposes, unworn models with all original packaging are ideal.
Expert Tips for New Watch Investors
- Include indie watches in your portfolio for higher upside potential
- Verify the watch’s condition and documentation, especially with pre-owned models
- Consider models with limited availability or those being discontinued
- Explore resale trends on auction platforms like Sotheby’s and Phillips
- If possible, work with a dealer who offers a buy-back guarantee for added security
Top 5 Investment Watches to Consider
1. Rolex Daytona Green Dial 116508
Crafted in 18k yellow gold with a distinctive green dial, this recently discontinued model is a collector favorite.
2. Rolex Daytona 116500LN "Panda"
A modern classic with a white dial and black sub-dials. Its sporty aesthetic and discontinued status boost its value.
3. Anniversary Rolex Day-Date in Rose Gold with Olive Green Dial
This elegant 36mm rose gold model has dipped in price to around £45k, down from highs of £70k. A strong buy for future appreciation.
4. Patek Philippe Nautilus 5711 (Blue Dial)
One of the most iconic models in luxury horology. With production now halted, demand continues to rise.
5. Patek Philippe Nautilus 5712
Similar to the 5711 but with added complications and a slightly more complex dial. A stunning investment piece.
Bonus Indie Pick: F.P. Journe Chronomètre Bleu
With incredibly low production and soaring demand, this indie masterpiece is a sleeper hit among collectors and investors.
FAQs About Investment Watches
Can I wear an investment watch?
Yes, but wear it with care. Condition affects resale value, so minimal wear is best if your goal is maximum return.
Is original packaging important?
Absolutely. A watch with its box and papers is far more valuable than one without.
Are independent brands safe to invest in?
Yes, especially if you research well. Indie brands with strong craftsmanship and low production can deliver excellent returns.
Should I stick to just Rolex and Patek Philippe?
They’re excellent choices, but mixing in indie watches or under-the-radar models can provide higher potential gains.
Final Thoughts
Luxury investment watches are more than accessories. They represent heritage, craftsmanship, and financial potential in one elegant package. Whether you're starting with a Rolex or exploring the artistry of independent watchmakers, the right timepiece can become a rewarding addition to your portfolio.
At Happy Jewelers, we’re here to help you every step of the way. From sourcing rare models to offering expert advice, our team is ready to help you make smart, confident investment decisions.
Visit us online or in-store to begin your journey into the world of investment watches.
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