The luxury watch market is a highly exciting and potentially lucrative market for investors. Due to the fact that it is a supply- and demand-oriented market, exclusive watches and timepieces created by the world’s leading manufacturers are known to retain or appreciate value over time. This article provides you with common mistakes to look out for when you are making the decision to start investing in luxury watches or select your next investment.
At GMG Watches, we are one of the leading independent luxury watch dealers in the UK. Our team is highly experienced in the luxury watch market and we are more than happy to advise you on as well as source the ideal luxury watch as an investment timepiece. Get in touch with a member of our team today to find out more.
1. Following Trends Rather Than a Researched Purchase
One of the main features of the luxury watch market is its volatility. This makes luxury watches a great choice for investments but it’s important to be wary of following trends without research. If there is a lot of interest in a certain style of watch, you need to ensure that the watch is still popular in a few years time. These watches can be pitfalls that make your watch depreciate over time as they aren’t as popular or desirable as when you purchased the watch.
2. Don’t Ignore the Common Great Investment Brands and Models
There are certain manufacturers and models that are extremely likely to retain their value over time so it’s important to not ignore these over more niche choices when investing. This is especially true if you have just branched out into investing and you are investing in your first watch(es). There are definitely some models that are released as exclusives which can be great niche investments and there are other factors that can buck the trend including the announcement of anniversary timepieces or the discontinuation of a certain model that can affect prices. Be careful when making your consideration and remember that there are a number of models that are renowned for at least retaining value as well as can appreciate over time such as:
- Rolex Submariner
- Rolex GMT-Master II
- Patek Philippe Nautulus
- Audemars Piguet Royal Oak
3. Avoiding Private Never Seen Listings and Work With the Professionals
Private sales can be tempting especially if they offer reduced prices however these listings and never-seen listings can be risky with scammers operating within the online marketplace. If a deal looks too good to be true, then it probably is. eBay and other auctions are good for lower ticket items but attract scammers. Counterfeiting is also extremely difficult to identify from pictures alone, you need to use experts such as our team to ensure that your investment watch is legitimate.
Professional auctions can work but you can end up paying a higher premium than sourcing the watch. Using our expert team is the best way to source your investment watch. We work with our network of trusted clients in order to mitigate the risk of purchasing privately. We carry out the vetting process for you and will help you source the perfect watch that suits you in terms of your investment.
4. Having an Impartial View on Your Desired Investment Timepiece
Your personal opinion is important, especially when purchasing a watch for regular or semi-regular use. However, a common pitfall to avoid is using your heart over your head when purchasing a watch as an investment. Your personal preferences may not match market trends and the general interest of the market overall. This is a key point of consideration when you are in the research stage of selecting your desired watch.
5. Investing Close to Your Maximum Budget in One or Several Luxury Watch Models
As with all investments, it’s important to agree your budget as well as your tolerance on how much you can invest and how much is acceptable to potentially lose during your investment. Luxury watches are a great investment however it is still a highly volatile market where you could see slight depreciation on your investment watch. To mitigate this risk, consider investing in multiple watches if possible rather than a large investment in one watch to diversify your portfolio. If you do decide to invest in one watch then ensure that you carry out extensive research around appreciation of your selected watch.
We also have many years of experience in the luxury watch market and we will advise you on current market trends as well as specific watches that suit your desired investment. Get in touch with our expert team today.