Would you spend a huge amount of money on a piece of jewelry or an accessory? Many people see high-end jewelry as a piece of investment. One of which are luxury watches. For a long time, luxury watches are known to be one of the best accessories to put your money in. Aside from their grandeur and aesthetic elegance, luxury watches are known for their longevity, which you can pass on to generations.
If you are thinking of buying a luxury watch as an investment, you need to consider all underlying factors. In that way, you can be sure that you are putting your money in the right place. In this article, we will take a look at some of these factors to help you kickstart investing in luxury watches.
- There is a variety of brands
Before you buy on impulse, you have to know that there is a wide variety of luxury watch brands. It is not just Rolex and Bvlgari. There are other classic and well-known collections such as the Grand Seiko Spring Drive, Audemars Piguet Royal Oak, Patek Philippe Complications, and more. By browsing through different brands and models, you will have a bigger picture of which product should you invest in.
Choosing the right brand is very important. Through this, you can identify if the timepiece is something worthy of the investment or not. Also, it will help you study the market further.
- Buy a luxury watch that you can afford
As they say, the larger amount you invest, the bigger the profit. However, while it is tempting to choose the most expensive luxury watch, it is also necessary to consider if you can afford it. Buying luxury watches can range from USD 15,000 to even millions of dollars.
As much as possible, try to gauge the amount that you will invest in luxury watches. In that way, you will not scrape at the bottom of your savings barrel. You can either save up for it or settle on the luxury watch that your current budget will afford.
- Do not wait for an instant ROI
The reason why you should not go over your budget is that luxury watches don’t have an instant return on investment. Yes, they are sure to return more than your initial expense, but it does not happen overnight. Even if you have a limited edition model, your timepiece may take some time to be more valuable.
The key is to make your luxury watches become an antique. It means that if the brand no longer manufactures your watch’s model, that is when it starts to become valuable. Rare and vintage luxury watches will cost almost double what you paid. But, again, it may take a few years.
- Research about the watch market industry
Just like any other investment venues, it is important to do a little bit of research. If you are not a businessman or are not familiar with how the watch market usually transpires, it pays to be more cautious. You can consult some of your friends or some people that you know who does this often. In that way, you can learn some of the tricks of the trade on investing in luxury watches.
- Luxury watches have an increasing value
One of the most constant facts about luxury watches is that their values appreciate. If you have a luxury watch that was manufactured in the 1960s, you are most likely to sell it at a higher value. Even if your timepiece was only released about 5 to 10 years ago, it is more expensive to resell now.
However, the best brands of today may not be the best brands of tomorrow. That is why, as stated in point number one, it is necessary to carefully choose the right and trusted brand that has been in the watchmaking industry for decades, if not centuries. In that way, you can be sure that they have withstood the changing taste of the market.
- Understand the market behavior
When investing in any other properties, there is always no guarantee that you will always have a steady activity. Not because a certain brand is doing well in the market means that they will be the king of the watch industry in the next couple of years. Hence, you have to see how the market is behaving in the past years.
- Be willing to resell when needed
Luxury watches are too priceless to let go of. But if you are on the investing side of these accessories, you should be willing to sell them when needed. The best timing is never predicted. So, when the marketing is strong, you have to convince yourself that it is time to take them out of your close.
- Go outside the usual marketplace
Consider selling outside the usual marketplaces. While online selling through Amazon or e-Bay is powerful, the competition on those platforms is high. Try looking for other avenues where you can sell your luxury watches.
Shop for luxury watches online
Are you looking to invest in luxury watches? Visit Watchshopping.com to know more about the different brands of luxury watches to choose from. Go to their website today!