What Makes Luxury Watches Lose Value?

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oliverstevens

·Jul 20, 2021

In the mind of a successful collector I am thinking what I could add to my watch collection that wouldnt lose to much value. I have tried to find the diamond in the rough before but was unsuccessful, so I knew for my next purchase I would have to research a little more into what makes watches lose value, and visa versa. After reading https://www.bobswatches.com/rolex-b...tches-lose-value.html#Rarity_and_Distribution , I completely think that rarity and distribution is one of the heaviest factors that influences the long term price of a time-piece. I have shy'd away from those types of pieces in the past but maybe I will have to start looking into one soon. I am curious as to what people look for when actually trying to pick their time-pieces for investment purposes. What are your markers for investing into a time-piece?

 

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texasmade

·Jul 20, 2021

I never buy watches for investment purposes. It’s not liquid enough. But if you want to know what drives value it’s supply and demand. Nothing else really matters. Watch could be precious metals with diamonds and multiple grand complications but if demand exceeds supply then the watch loses value.

 

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Shabbaz

·Jul 20, 2021

My portfolio must achieve a return of at least 5% net every year. So I mainly invest in Rolex Submariners. The rest doesn't really matter.

 

M

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Mediocre

·Jul 20, 2021

I have made the mistake of monetizing my hobby in the past. It served me well financially, but it drained the fun out of the hobby

Yes, I have done (and continue to do) many stupid things in my life. One benefit is being able to learn from them


As for investments, if you want safe go bonds, if you want higher risk/high reward go bitcoin.

With watches, go SS Rolex sport models, Omega Snoopies, or spend big and find a "reasonably" priced Nautilus.

Me? My ROI expectation is not financial. The return I base my "investment success" on is how much enjoyment I get out of the watch during my ownership

 

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JwRosenthal

·Jul 21, 2021

SNORKEL!!

Always a sound investment 👍

 

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ghce

·Jul 21, 2021

Invicta, the only way is up!

 

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Omegafanman

·Jul 21, 2021

I think you are asking the wrong people who save watches with no commercial ambition...

https://omegaforums.net/threads/information-help-request-for-a-recovered-ralco.92257/

I guess margins are very high and cover warranty etc so unless a very popular model prices will drop initially. Yes it is supply and demand but over time inflation is your friend and for most watches the numbers in circulation and in good condition drop. Some of the modern production numbers / newer materials may challenge that of course.... but I suspect inflation is not going out of fashion anytime soon... best to own things you love and appreciate and then if you sell and make money it is just a bonus. Don’t forget service costs as well (unless it just sits in a safe and then bitcoin/gold or stocks make more sense maybe)

 

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p4ul

·Jul 21, 2021

oliverstevens

What are your markers for investing into a time-piece?

Only one marker. Buying what I like.

 

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jaguar11

·Jul 21, 2021

Personally I have never bought a time piece as an investment. I do have a preference for markers with a slight patina though. Let me know how you go on with your investments and good luck!

 

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Zapatta

·Jul 21, 2021

IMO, this forum is mainly for collectors who sell watches to fund new watches or they buy what they like no matter the price. Most of the "investment" advices can be found on WUS or RF. 😀

 

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Faz

·Jul 21, 2021

M Mediocre

I have made the mistake of monetizing my hobby in the past. It served me well financially, but it drained the fun out of the hobby

Additionally, unless you go for the highly collectible watches, "gaining/losing" value in luxury watches is irrelevant. They're just that. Luxury items.

 

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Larry S

·Jul 21, 2021·Color Commentator for the Hyperbole.

Shabbaz

My portfolio must achieve a return of at least 5% net every year. So I mainly invest in Rolex Submariners. The rest doesn't really matter.

😁

 

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lillatroll

·Jul 21, 2021

I only buy watches I like. If I was going for the investment angle, I would buy the ugliest, least popular watches from the most prominent brands around today. 20, 30, 40 years ago, nobody wanted a Daytona or a nautilus or a milguass. Based on that logic get yourself a new Railmaster a Skydweller and that ugly Tudor that came out a few years ago. Keep them for 20 years and see if you have the last laugh or not.
I have a Casio King Ned that is only limited to 300 pieces. Its ugly and trashy. It is so ugly that it will be worth a fortune at some point. Yours for 600 euros

 

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river rat

·Jul 21, 2021

Just buy what you like. I like vintage watches. Bought them when they were cheaper but through the years a few of them I bought have went up in price that today I would not pay and some just went up in price very little but I enjoy them all. And was a surprise some went up in price like nuts. To enjoy this hobby buy what you like don’t do it like the stock exchange and don’t jump on the bandwagon and buy what everyone buying I liked vintage when most did not at the time now a lot more are collecting them and now sucks for me less out there and prices are not good anymore.

 

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Transitus

·Jul 21, 2021

I can summarise this. The truer measure of a successful collector is a collector who enjoys their collection.

 

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Larry S

·Jul 21, 2021·Color Commentator for the Hyperbole.

I was searching for something pithy and witty, but my coffee is failing me this morning. Watches are NOT an investment. ( despite what we tell our wives) … buy the best you can afford, enjoy and some day you will part with them for a cash value. If appreciation is your sole reason for getting into watches, I’d suggest another hobby.

 

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jaguar11

·Jul 21, 2021

Shabbaz

My portfolio must achieve a return of at least 5% net every year. So I mainly invest in Rolex Submariners. The rest doesn't really matter.

It must be hard for you having your Kontiki (not being a Submariner)! If it really does pain you in terms of an unsatisfactory return please feel free to send it to me 😀 Nice watch and keep enjoying your holiday!!!

 

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inchpincher

·Jul 21, 2021

river rat

Just buy what you like…

I’m not sure the OP knows what he likes, fifth post, third containing links to Bobs Watches resource articles.

 

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Donn Chambers

·Jul 21, 2021

As I said in another thread (started by yet another low-post member who never bothers to reply to the thread they started), it is sad that “collectible” has devolved in meaning to “what can I buy now and make a lot of money on in the future.”

It used to be that collectibility was about buying things you like, or that evoke memories. My largest “collection” is about 100 of those pressed pennies — you know the machines, where you put in 50 cents and a penny, turn the crank, and out comes a penny with a stamping representing the place you visited. They aren’t even worth the 50 cents I paid, but every oneis a reminder of a trip I made. I have them dating back to the 1980s. The collection is “worthless” to anyone else but me.

I also still have a small collection of old comic books (Nexus and Grimjack, anyone know those?). They are not worth anything because no one else collects them - I keep them because I still like re-reading them from time to time, because I enjoy the stories and artwork.

Buying what brings you joy will make you happy in the long run. Buying to make a profit in the future will make you anxious and unhappy, because you will likely overspend AND never get your money back.

 

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Canuck

·Jul 21, 2021

It seems to be a growing trend that the OB is becoming a forum for advising new member “investors” in watches as to what to buy and how much to pay! When does it happen when one of these”investors” gets back to us that he took our advice, lost money, and is now peeved with whoever it was that gave him “bad” advice? I think we should be suggesting to these people, full speed ahead and damn the torpedos, and let them suffer the consequences of an “investment” gone wrong! Just like the rest of us do.