A Collector’s Guide to Watches: Investing in Timepieces

When it comes to watch collecting, the sheer depth of the subject can be overwhelming. How can one distill the vast world of horology into a concise guide? There’s so much to consider - value retention, history, craftsmanship - yet there’s one fundamental truth: collecting watches should be a blend of passion and knowledge.

While we don’t offer specific investment advice, it’s clear that certain watches hold their value better than others. But if value retention wasn’t a concern, our best advice would always be to buy what you love. After all, watches are meant to be worn and enjoyed. Yet for many collectors, it’s rarely that simple.

Watches as Investments: A Brief History

Though watches are often seen as modern-day investments, their status as a valuable asset class dates back to the post-World War II era. Limited production, superior craftsmanship, and the use of precious metals helped shift perceptions. What was once merely a fashion accessory became a store of value. Today, social media, crypto wealth, and the search for diverse investments have further fuelled interest in watches as a financial asset.
Just like any other asset, watch prices are driven by supply and demand. High-demand, low-supply timepieces often experience price surges that make manufacturer retail prices seem irrelevant. The hottest pieces are often sold well above retail. Historical trends can be a helpful guide in understanding which models have performed well over time, offering insights into how certain events or market forces have impacted their value.

Getting Started: Key Considerations for Watch Collectors

Most collectors already have a sense of what they like, whether it’s a specific brand, model, or a piece that evokes nostalgia from childhood. But narrowing down your choices can be tricky. Here are a few helpful questions to guide your decision-making: 

• How many were made?
  Is this watch part of a limited production run, or is it a current production model that’s still widely available? Limited-edition watches tend to hold their value better than those produced in large quantities.
  
• What makes this watch special?
  Does the watch have a unique feature, such as a rare movement, or is it associated with a specific event or historical figure? These factors can significantly impact its desirability among collectors.
  
• Does the manufacturer typically produce in low volumes?
  Some brands, like Patek Philippe, are known for producing relatively few pieces each year, which adds to their exclusivity. On the other hand, brands that mass-produce millions of watches each year may not have the same level of scarcity, making their watches less likely to appreciate over time.