The conversation often goes something like this. “Is this a good investment? I want to buy something I can make money on. What watch do you think will be the next one to pop?” It seems everyone wants in on the action.
At Veralet, our focus is on vintage watches. There are many reasons why we love vintage watches and think they are the best way to go. View our post, The Vintage Proposition, to learn more about the value proposition and why a vintage watch may be right for you.
Back to the original question. Is this a good investment? Unfortunately, we do not have a crystal ball and cannot predict where the market is headed. We have our thoughts, convictions, and best guesses, but the fact of the matter is, nothing is absolute. The current market for new watches is in a strange place to say the least. The demand for new watches from brands such as Rolex, Audemars Piguet, and Patek Philippe greatly dwarfs the supply. Barren showcases are the norm in luxury boutiques today. As a result, a number of new watches are selling well above retail, if you can even get them.
People often like to chase the "it" watch; that watch that everyone seems to want. It could be the Pepsi GMT Master, or a Vintage Sub. But is this the right watch for you? We often ask our clients to think about their motivations and reasons for buying a watch. We believe it is important for our clients to be candid and honest with themselves as to why they are interested in purchasing a watch. Understanding your motivation will help you evaluate if this purchase is a good investment for you.
So, are watches a good investment? Yes. Watches are a good investment. But not for the reasons you may think. When you buy a watch, you are not just purchasing a tangible good that happens to tell time. You are satisfying an internal need and desire. You are showcasing your taste and style. A watch is more than just a device to tell time; it speaks to who we are. A watch is with us as we celebrate achievements and milestones; we build memories with loved ones. Perhaps you have been saving for this watch for a long time; this watch now becomes a symbol of your hard work and success.
The most important investment you can make is in yourself. A watch is just a part of the equation.
Please visit the next post in this series, Are Watches a Good Investment? Part II, where we offer some advice for buying a watch.