NewsWatch collecting is a hobby, not an investment, experts warn
Most watches lose value over time rather than gain. Some rare models like the Rolex Submariner tripled during past booms. Experts advise buying for enjoyment instead of expecting financial returns. You face long dealer waitlists and volatile pre-owned prices.
Your smartphone tells time just fine, but the global watch market still sits at more than $135 billion. Charles Tian, who runs the used-watch tracking platform WatchCharts, looked at the numbers and issued a warning for anyone eyeing a timepiece as a nest egg. "I would not get into watch collecting purely from a financial perspective," Tian said. Most watches lose value the second you walk out of the store. Take the Breitling Superocean 42 or the Panerai Luminor GMT, both of which saw price drops over the past year. Mike Johnson, founder of the market data site WatchPatrol, put it bluntly. "The majority of watches depreciate and it's hard to tell which new references will ascend into 'modern classic' territory," Johnson said. There are rare exceptions, such as a Rolex Daytona once owned by actor Paul Newman that originally cost $210 in 1972 and later sold at auction for $17.8 million in 2017. But those windfalls are like winning the lottery. If you want a brand that actually holds its value, experts point to names like Rolex, Audemars Piguet, and Patek Philippe, with new prices Starting anywhere from $6,200 to $18,000. Even then, actually getting your hands on one at retail is nearly impossible because of tight dealer allocations. "You're on a wait list, and the boutique decides when and whether you get to buy," Johnson explained. Robert-Jan Broer, founder of the online horology magazine Fratello Watches, noted that pre-owned prices can be soft for common models. Buy a watch because you love the mechanics on your wrist, not because you think it will pay your property taxes.