Why Do Some Luxury Watches Appreciate In Worth (While Others Don’t)

If you are someone who loves buying luxury watches, then you must be aware of the fact that there are some watches that depreciate in value with passing years while the others appreciate.

Say you are an ardent luxury watch buyer who loves owing different brands. You go to an auction and buy a watch by paying the full value. A few years later, you see some watches are put up in another auction and you really loved them. You decide on buying by selling your old luxury watch, will go get the full value that you had spent previously on this? Will the value appreciate or depreciate? Let’s try to find that out.

Finding out the reasons

Experts have always concentrated on the fact that luxury watches are capable of holding their value more than many other investments. If you purchase the right watch, its value would appreciate 10 to 30% of the original value in the coming few years. We all know how vintage pieces are appreciated in the auction market and as time passes those watches always acquire more value to them. But being old cannot be the sole reason for the appreciation; there are tons other that would need your consideration. Along with the common phenomenon like the fluctuations in the global economy, here are 5 other reasons that we have listed down that could possibly influence the future value of the luxury timepieces.

  1. Rareness– We always prefer owing things that are unique and rare. This is a common human behavior and has a great impact on the supply and demand of the economy. The supply is less and demands to be more, the price always goes higher for these products. We all wait for the limited edition watches from our favorite brand and the idea behind this is being unique from all the other people present around us. With the scarcity in the number of watches, and the demand rising with each passing time, it is very evident that the values of these would appreciate at the time to come.
  2. Brand name– We can never deny the fact that brand name bears a great amount of goodwill in the heart of the product users. Some brands are capable of retaining their value and in fact, rise it in the coming years while the others fail to do so. Brands like Seiko Prospex have a huge demand throughout the world and it keeps on rising with the passing time. The edition and the lines of a particular brand also matter as people prefer one collection more than the other.
  3. Genres– You would see that the quartz or mechanical luxury watches are more in demand compared to the sports one. This implies the fact that the genres of watch do matter. You must always buy watches that are in the highly demanded genre as there is a chance that these watches would appreciate in value compared to the highly complex watches that have a lesser fan base.
  4. Aesthetic beauty– Even though the price of a luxury watch is least dependent on its aesthetic beauty but sometimes you would see that a themed watch has gained a lot of demand. The theme can be anything like an overall blue watch with a blue dial and so on. These look quite unique and help the collection to stand out from the others. It has been observed many a time that such watches do gain a lot of value in the years to come because of the unique feature that it bears which is quite different from the others present in the market.
  5. The past owners– Well do you endure the idea of owning a watch that your favorite celebrity used to wear in the past? There are many people in the world who do. If the watch is owned by a renowned celebrity then many fans would be ready to pay a much higher amount in order to gain it. But this point is a tough one to keep in mind as you might not be lucky enough to get hold of a timepiece that has a great history or you are a celebrity yourself.

Being on the consumer side, it might have confused you that how the values vary from one luxury brand to the other. Well, nothing in the world happens randomly, and now that you know there are some solid reasons behind the value appreciation of some luxury watches, you can invest wisely.

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