Are Watches a Good Investment? An Honest Look
It has become common to hear watches described as investments, with stories of certain models appreciating dramatically. There is truth in this, but the reality is more nuanced than the hype suggests. Some watches have proved excellent stores of value, while many others have not. Approaching watches purely as investments is risky, and it can spoil the pleasure of owning them. This is an honest look at whether watches make good investments and how to think sensibly about value.
Some watches do appreciate
It is undeniable that certain watches, particularly sought-after models from prestigious makers, have appreciated significantly, sometimes spectacularly. Scarcity, brand prestige, iconic design, and strong demand can drive prices well above their original cost, and some pieces have outperformed conventional investments over certain periods. For a small number of highly desirable references, watches have genuinely functioned as appreciating assets, which is what fuels the investment narrative.
But most watches do not
The crucial caveat is that these appreciating watches are the exception, not the rule. The vast majority of watches, including many fine and expensive ones, lose value the moment they are bought, much like most consumer goods. Buying a watch expecting it to appreciate is, for most models, likely to disappoint. Treating any watch you buy as a guaranteed investment is a mistake, because most will not deliver returns and some will lose value substantially.
Value can be unpredictable
Even among desirable watches, future value is hard to predict. Markets shift, tastes change, and prices that soar can also fall. The recent strength of certain watch prices is no guarantee of the future, and buying at a peak in the hope of further gains carries real risk. Anyone approaching watches as investments should understand that they are a speculative, illiquid, and unpredictable market, not a reliable path to returns.
Buy what you love
The soundest philosophy for most collectors is to buy watches you genuinely love and will enjoy wearing, treating any appreciation as a bonus rather than the goal. A watch bought for pleasure delivers its value every time you wear it, regardless of what the market does. If you also happen to choose a piece that holds or gains value, so much the better, but enjoyment should come first. This approach protects you from disappointment and enhances the pleasure of collecting.
If you do invest, do it wisely
For those determined to buy with value in mind, the usual principles apply: focus on desirable models from respected makers, prioritise excellent condition and full provenance, do thorough research, and never overpay. Diversify rather than betting everything on watches, and only commit money you can afford to have tied up. Even then, treat it as a speculative venture rather than a sure thing, and be prepared for the possibility that values may not perform as hoped.
A balanced view
The honest conclusion is that watches can be good investments in specific cases, but they are unreliable ones in general, and treating them primarily as investments risks both financial disappointment and lost enjoyment. The happiest collectors are usually those who buy for love, choose well, and regard any financial upside as a welcome extra. Keep that balance, and you will enjoy your watches whatever the market does.
Frequently asked questions
Are luxury watches a good investment? Some sought-after models have appreciated significantly, but most watches lose value after purchase. Watches are an unreliable investment in general, so buy primarily for enjoyment.
Which watches hold their value best? Desirable models from prestigious makers, with iconic design, scarcity, strong demand, excellent condition, and full provenance, tend to hold value best, but nothing is guaranteed.
Should I buy a watch as an investment? It is safest to buy watches you love and will enjoy, treating any appreciation as a bonus. If you do buy for value, research thoroughly, choose wisely, and never overpay.
This guide is for general educational purposes only and is not financial or investment advice. The value of collectibles can rise and fall; do your own research and consult a qualified professional before making significant purchases.