Watch Investment Funds…ugh…

Larry S · Jun 23, 2021

I know we all wish our watches would appreciate. I suspect however that most of us didn’t get into this thing of ours to make money. I sure didn’t. This not so recent trend is nauseating to me. It’s pure greed and bad for the collector community.

“Watch Investment Funds: Show Me The Money!” via @watchville
https://api.watchville.co/v2/posts/61717/click

perks713 · Jun 23, 2021

Interesting concept, unfortunately if they become popular they also drive up the prices for everyone else.

I got into watch collecting because I love the history behind it, but I’d be lying if I said I’m not looking for the next watch I can try and flip for more money. I don’t have the resources to poor into this hobby without trying to buy low and sell high. I’ve only sold 1 piece (I get too attached) I’ve ever bought but it helped fund a 2254.5 that I couldn’t have ever justified without making that sale.

Larry S · Jun 23, 2021

perks713
Interesting concept, unfortunately if they become popular they also drive up the prices for everyone else.

I got into watch collecting because I love the history behind it, but I’d be lying if I said I’m not looking for the next watch I can try and flip for more money. I don’t have the resources to poor into this hobby without trying to buy low and sell high. I’ve only sold 1 piece (I get too attached) I’ve ever bought but it helped fund a 2254.5 that I couldn’t have ever justified without making that sale.

Still .. you at least take possession and wear the darned things.

timecube · Jun 23, 2021

perks713
I don’t have the resources, too poor

Sounds like me.

perks713 · Jun 23, 2021

Ha, a semi beneficial incorrect spelling, I’ll take it.

Darlinboy · Jun 23, 2021

I’ll stick with what I know, thank you very much. 😉

pdxleaf · Jun 23, 2021

Just so long as they keep buying only Rolex, no problem for me. Nothing against Rolex, even like a few. But they are already so overvalued it doesn't matter if they triple in cost.

It's one thing when people can't afford houses because of REITs paying cash and bidding up past what a young couple can afford. But s*** is getting serious when they mess with watches!

jsducote · Jun 23, 2021

It's bad enough that there are "collectors" who have so many connections that they snatch up everything on the market before it even hits the market.

Dries · Jun 24, 2021

This is by no means new. Alfredo paramico has done something similar but with more money involved and if memory serves there have been a few other attempts. I am amazed there are not more of these already, given that you already can *invest* in classic cars, whisky

The small consolation is that these *investors* tend to lack patience, and that all these previous watch funds have tanked as a result of poor liquidity in the higher end of the market.

I think it was called ‘precious time’

DoctorEvil · Jun 24, 2021

OMG, now I've seen everything. Thank goodness I'm not in the market for a SS Rolex right now or I would be absolutely livid.

What we're in right now is a speculative bubble for Rolex watches, with entrepreneurs exploiting this to make a quick buck. This guy is no different from your casual flipper. He's just doing it on a bigger scale, over a longer timeframe and inviting other people to join him. It kind of reminds me a little of a real estate boom, the dotcom share boom or the commodities share boom. Eventually, all bubbles burst. The prices of these watches on the secondary market can't keep rising forever. Eventually, they will plateau and then fall when potential buyers say "this is crazy, I'm not paying this kind of money for this type of watch". When this will happen nobody knows, but God help those who've "invested" in these funds/watches when the time comes. Even if you plan to keep the watch and paid way over the odds for the privilege, I'm sure you'd still feel like an ass when you see the prices start coming down again.

ghce · Jun 24, 2021

Interesting concept and I can appreciate the concept and even endorse it to some extent, it only feeds the appreciation in $ of our collecting habit.
Up front I must state I have no interest in Rolex whatsoever and would not be likely to ever buy one however the 200 plus watches in my collection might suffer an increase in sales price were I ever to sell them, keeping in mind I always have an eye to future value when I purchase and service a vintage watch.
Bearing in mind that the 200 odd watches I have acquired and serviced have all been acquired in about a 2 1/4 year period speaks volumes as to the resurgent current interest in vintage watches and I have no intention of slowing my spending spree as I can foresee that I wont loose a dime and potentially will end up with a gold mine at sale time in the distant future.

As an aside my wife started a spread sheet a couple of days ago and after just one page of what I had written down ( roughly 15% of what I had purchased) I almost died at the bottom line figure.

Larry S · Jun 24, 2021

ghce
Interesting concept and I can appreciate the concept and even endorse it to some extent, it only feeds the appreciation in $ of our collecting habit.
Up front I must state I have no interest in Rolex whatsoever and would not be likely to ever buy one however the 200 plus watches in my collection might suffer an increase in sales price were I ever to sell them, keeping in mind I always have an eye to future value when I purchase and service a vintage watch.
Bearing in mind that the 200 odd watches I have acquired and serviced have all been acquired in about a 2 1/4 year period speaks volumes as to the resurgent current interest in vintage watches and I have no intention of slowing my spending spree as I can foresee that I wont loose a dime and potentially will end up with a gold mine at sale time in the distant future.

As an aside my wife started a spread sheet a couple of days ago and after just one page of what I had written down ( roughly 15% of what I had purchased) I almost died at the bottom line figure.

Yea.. don’t do that. 😗

S.H. · Jun 24, 2021

ghce
I can foresee that I wont loose a dime and potentially will end up with a gold mine at sale time in the distant future.

Well, past performance is not a reliable indicator of future performance... Nobody can reliably predict that.

Braindrain · Jun 24, 2021

As the saying goes...

My only worry when I die is that my wife sells my watches for what I told her they're worth.

Dan S · Jun 24, 2021

ghce
I have no intention of slowing my spending spree as I can foresee that I wont loose a dime and potentially will end up with a gold mine at sale time in the distant future.

Hopefully this was tongue-in-cheek.

ghce · Jun 24, 2021

Dan S
Hopefully this was tongue-in-cheek.

A little 😀 either that or I might need to live to 150 to see the return.
At the end of the day I only buy what I like and often pass on some of the more commercially assured pieces.

dsio · Jun 24, 2021

There are a whole lot of watches that are still undervalued, and a whole lot that are significantly overinflated at the moment needing correction still. I really don’t like this stuff in general as its the reason we have such shortages and scalping taking the fun out of watch collecting particularly on new pieces but I’m fairly sure that while Alfredo’s fund will do fine since he’s investing in the white metal vintage Pateks and the cream of the crop, the majority of these small funds are at significant risk of getting their fingers burned, especially if Rolex ever decides to turn the taps back on steel sports watch wise.

S.H. · Jun 25, 2021

Also, what happens to "the market" if the new trend of the 2020s is small thin PM or bimetallic watches, and nobody wants to be seen with a big honking steel desk diver or chrono anymore? That could be fun to watch...

egri · Jun 25, 2021

I think it’s fitting that this thread was right next to the WRUD (Drinking) Today? thread, as I may need something. It’s 5 o’clock here (AM, but who’s counting?)

Archer · Jun 25, 2021

S.H.
Also, what happens to "the market" if the new trend of the 2020s is small thin PM or bimetallic watches, and nobody wants to be seen with a big honking steel desk diver or chrono anymore? That could be fun to watch...

There are very dedicated watch "hypers" out there who will do whatever they can to counter that trend, because they know they would lose their shirts if that happens. In some circles you are only a true enthusiast if you pay inflated grey prices, and you are a low level chump if you wait for a watch from the AD to get it at list. The level of insanity out there is massive, and those people will do anything to keep it going.

I actually think some of the pricing is pretty artificial anyway, with watches moving back and forth between dealers, with widely publicized increases each time before they actually sell them to collectors.

Watch Investment Funds…ugh…

Larry S

perks713

Larry S

timecube

perks713

Darlinboy

pdxleaf

jsducote

Dries

DoctorEvil

ghce

Larry S

S.H.

Braindrain

Dan S

ghce

dsio

S.H.

egri

Archer

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