Is there such thing as a Recession Proof watch?
It’s really been a kind of revaluation for some watch collectors/investors to see a price correction for some of the most sought after watches. I too eagerly watched the video on recession proof watches. (link below:)
unfortunately I may have to express a differ opinion in some of the things he mentioned:
1) Recommending to buy models the never appreciated recently:
There is a reason why these watches (he mentioned) never appreciated in value in the first place, and quite honestly I will feel my wrist deserves better than those “recession-proof” watches. They either not suited for my lifestyle or my age. For example the 36mm President are too small for my wrist.
2) Seriously… going back to AP offshore 42mm?
AP offshore is a massively and insanely popular watch up to a few years a ago. Quite naturally this trend dies off and price had fallen and remain stagnant lately. While it is not exactly a obsolete design like Cathode-Ray tube television, it definitely seem better days. The biggest risk I will run into, is having mocked by friends with slick Royal Oak 15202 on their wrist. Further more I doubt the value of Offshore will hold if there is a price onslaughts during a full blown financial market recession. For a stock that never rise in a boom market, how will you expect it to survive a downturn?
3) Datejust 41mm the worry of greater evil ahead
Nice to see the popularity and fortunes of Datejust Improving. We all know why: Sport Rolex models just simply too hard or expensive to obtain. We use to be able to buy a Datejust from ADs with some discount years ago, now they (Datejust) are flying off the shelf at RRP or being bundled deal with a sport model. Some people I know even purchased Datejust/Day-Date in order to build a relationship with the retailer, in hope of getting a sport Rolex allocation some time in future. In my opinion, to many people bought Datejust that they don’t need recently. When recession hits and there is a need to free up cash, trust me, people will offload the Datejust first. When that happens, secondary market may not have the ability to absorb them all and that make them an illiquid asset. What’s worse? Falling price for sports Rolex or illiquid dressy Rolex?
4) Gold President Day-Date
If there is one thing that’s as true as: “sun rises from the east” that will be Rolex President (“Rolex King” 1803, 18038) value will appreciated over the time. They are make of solid 18k gold and hence the value material provides a good hedge against inflation, as simple as that. Those Day-Date with extremely desirable dial like “Stellar” have prices already shot up into the stratosphere recently, so please be extremely careful.
SO? What shall we do then?
While we love to see the price of watches grow, too many of us simply neglected what other advantages a wrist-watch have: for example, giving us the style, the confident, the distraction of modern day stress, the projection of our personality , etc..
I’ll argue that NOW is even more crucial to have a “correct” watch wrist strapped on our wrist than any other time, since the invention of portable time-telling devices: We often don’t want to be spotted with an ugly watch or too expensive timepiece that too overwhelming for the occasions, etc.
So please choose the watches wisely. It is true price will fall during recession, so is other asset classes like shares and property. BUT isn’t it true that they will rebound after the recession?
We can hold back the expansion of our collection, and postponed the purchases. Maybe in time, lower prices or better opportunities may present itself. Just please don’t buy whatever (that’s presented in the video that I share) if you don’t like them, it is hard to liquidate them in future.
While we can’t live without a roof over our head, neither do we want to lose the comfort and luxury having beautiful timepieces. Every unhappy day is a waste, as our time on this planet is finite. So is every day that has passed by without a good watch on our wrist. Believe me, value isn’t everything…..
#It’sMyLife #rolex #patek