Value keeping watches?
With equities market at now on ecstasy. Main benchmark indexes hitting record high, many investors are busy getting their bucks working even harder. However, there always are a handful of doomsayers, whom believe in “what goes up must come down”. In the recent years, the rise of Swiss watch industry has created another investment vehicle or asset class. Swiss watches are well known for value keeping, it has liquidity to some extend too. However judging from the prices achieve at auction houses in last couple of years, prices can be nothing short of speculative.
First one must know, there are an element of TREND influencing the resale prices of wrist watches. Trend of the past, like chunky watches for example, inflated resale price of historic Panerai and Audemars Piguet Offshore. While these watches did not become worthless, owners did find themselves overpaid in the past and facing the problem of finding buyer when they wish to liquidate. Fashion are less cyclical than financial markets, hoping and praying for a return of an outdate trend/style may just be too folly.
Iconic models: these are the evergreens and timeless design. Model of the past and design for the future. Patek Philippe Nautilus, Audemars Piguet Royal Oak, Rolex Submariners, GMT or Daytona are the obvious choices for today. They are the hottest watches of the moments and a long standing history. It is very easy for investor to believe today’s daring of the market will still be a blue chip of the future. Look at the sky high prices of these models, I will not advise everyone to jump into this frenzy without making a proper study. A stark reminder of some Iconic that became a thing of the forgotten past, IWC big pilot, Franck Müller Crazy Hours, Cartier Tank or Rolex Datejust. They are still iconic and recognizable today, but do they worth as much as the popular counterpart now?
Hence, it is downright important for any wrist watch investor keep abreast of current trend and resale prices. Not doubt wrist watches are worthy investment. Ones’ must know what’s up and coming and what’s turning cold. Just like selling off petroleum related stocks as the crude oil industry experience over-production problem. Best is to stay ahead and observe the changing market taste. Review your collection from time to time.
