The other day I read an article about alternative investments. Two of the suggestions were quite remarkable: handbags and watches. Obviously, we’re talking top notch here. I really liked the idea: buy a nice handbag or watch, wear it and then after some time sell it at a higher price. More fun than buying shares I would say 😊
Handbags and watches
Although fancy handbags can be quite expensive too, the watches most probably come at an even higher price. Therefore, if you want to make money on it in future, it’s important to figure out the potential of the watch as such. As with buying shares, it’s smart to do some research first to get an idea on the return of your investment. First decide on a budget you want to spend and then start looking for watches within that range.
Talking to experts will help, they can tell which watches are and will stay in demand. However, getting savvy yourself is a good strategy. There are plenty of watch forums out there to check out.
After having done some general research, make a shortlist of a few models that look promising and still fit your budget. Try to find out how easy it is to find original boxes, manuals and other “parts” and, obviously, the price of it. When you start shopping for your watch you might find one without the original box or manual for instance. In that case it’s good to know whether it’s easy to get the missing parts and what you must pay for it. Then do the math. Is it worthwhile or better continue your search till you find a complete set?
Some rules of thumb:
- Most of the time, the value of the watches will decrease as soon as they’ve been worn. The rare, iconic pieces that won’t be difficult to find and come at a very high price. So, don’t just focus on them, make your scope a bit broader.
- Find out the original recommended retail price. A pre-owned watch (again, not the very exclusive ones) should come cheaper than that.
- Be aware of damages. The more damage, the lower the price should be. Consider carefully whether the damages should be fixed; original parts are highly valued by your future buyers. But make sure the watch really works.
- Packaging, certifications are very important. Without them, the watch is worth much less.
Here’s 3 tips of a seasoned collector:
Rolex and Patek Philippe can really increase in value, but that only applies to the stainless-steel sports models.
Always buy a watch that will also really enjoy wearing yourself.
Patek Philippe and Rolex will not issue you a replacement of a box or warranty papers. Once the first lot is lost, then that’s it, the price of the watch will drop. It’s important to keep the box and all papers relating to the watch.