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Published on: 07/08/2023 • 4 min read

Are Luxury Watches Good Investments?

There are likely many investors who would argue that watches are not investments worth adding to your portfolio. Their argument is generally that the value of the watch does not appreciate over time, but the truth is that some watches do increase in value as the years go on, although those are typically only rare and limited edition models.

With this in mind, avid watch lovers who are looking to invest in watches or gold jewelry may be wondering, “Are luxury watches good investments? Do watches hold value well?”

The simple answer is yes — watches can be both a good alternative investment vehicle as well as a personal pleasure. The key is to buy the right watch for your needs, budget, and style.

Do luxury watches appreciate in value?

As with any investment, there are no guarantees when it comes to buying a watch as an investment. However, if you select a limited edition watch or rare vintage timepiece that is in high demand (like the Paul Newman Rolex Daytona or one of many Audemars Piguet watches), then you stand a better chance of seeing your watch’s value appreciate over time.

In addition to selecting the right watch, it’s also important to maintain your watch properly. This means making sure the movement is kept lubricated and operational so that the timepiece can function as intended. It also means keeping the case, dial, and strap clean while avoiding exposure to extreme temperatures, moisture, and dust. Essentially, if you buy a luxury watch, you should be prepared to get it serviced regularly. 

If you do choose to invest in a luxury watch or gold jewelry, or another alternative investment vehicle like fine art,* it’s important to remember that the value of your investment can both increase and decrease. Therefore, you should always do your due diligence when researching watches and be sure to purchase from a reputable dealer who will provide you with full disclosure regarding the item’s condition and history. That way, you can make an informed decision before investing in a watch or gold jewelry.

*Learn more about fine art as an alternative investment.

Are watches a good investment against inflation?

Inflation is the enemy of many investors. Over time, it can erode the value of an investment and decrease its purchasing power. However, watches can offer a hedge against inflation and have the potential to help you keep your money safe while still enjoying some luxury.

Watches have proven to retain their value over time, often growing in appreciation as rare pieces become even more sought after. And unlike stocks or bonds, watches may be enjoyed on a daily basis while they appreciate in value. As investments, they can also provide an excellent opportunity to diversify your portfolio and work to protect yourself against market volatility.

Ultimately, the decision to invest in luxury watches or gold jewelry is up to you — but it’s important to remember that these items are not always a sure bet. As with any investment, it’s important to do your research and refer to a wealth management firm that offers investment management services before making any purchases.

What are the best watches to buy as an investment?

The best watches to buy as an investment will depend on your budget and individual needs. Generally speaking, vintage timepieces from well-known luxury brands like Rolex, Patek Philippe, Omega, and Audemars Piguet are considered good investments due to their long history of value retention and appreciation. 

In addition to brands, look for certain characteristics when buying a luxury watch as an investment. Limited edition pieces with intricate design features tend to hold their value better than more basic models. Another consideration to make when looking for a luxury watch to invest in is to only purchase watches that are in excellent condition, as those with damage can be difficult (and expensive) to repair.

Looking to diversify your portfolio with luxury watches? Let’s talk.

So, are luxury watches good investments? With the right knowledge and approach, luxury watches or gold jewelry can be a good alternative investment for watch lovers who are looking to diversify their portfolio.

At Avidian Wealth Solutions, we offer high-net-worth investors fiduciary investment management in Houston as well as investment management in Austin, although we can serve you wherever you’re located.

Our multidisciplinary team of advisors works with you to create a personalized financial plan that takes into account your investment goals and risk tolerance.

Schedule a conversation with us today to learn more about how we can help you work towards reaching your financial goals.

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