Two Reasons Why Luxurious Watches Are A Solid Investment
Watches are a great accessory to complement any outfit. A watch makes your outfit stylish, professional, and gives you an elegant look. Luxury watches are also a sign of welfare, since some of them cost as much as tens if not hundreds of thousands of dollars. You might ask yourself: “who would buy such a watch just to show off?”. But showing off is not the reason that most people buy expensive watches. Instead, a lavish watch is actually a great investment, and after reading this article you will understand why.
The materials determine the value
Most watches from mid tier luxury brands, such as Seiko and TAG Heuer, are made of stainless steel. They are very durable and precise in telling time, but they are not a great investment. Stainless steel rarely loses its value, but it does not have the same high value of other precious materials, making them harder to sell for the same price as what it was bought for. Besides, mid tier brands often use Plexiglass to cover their dials, which can easily scratch, and scratched watches are lower in value.
The price of gold and silver rises
In order to return your investment, or even make a profit when you resell your luxury watch, it is important to choose a watch made with precious materials. For example, some watches from Omega, Cartier, or Audemars Piguet, among many other brands, are made with 18k gold, are gold plated or are made with silver. These materials rarely lose their value. If anything they gain value after decades of rises in the prices of these commodities.
Diamonds increase the value even more
Another thing to consider is decorated watches. Some watches have diamonds on the bezel, case, hour markers, or on the dial. These stones increase the price and value of the watch drastically. Because diamonds also rarely lose their value, it is a good investment as well. Find all kinds of diamond watches on Chrono24, an online dealer of new and used watches.
The demand exceeds the production
Watches are not easy to make. The materials used for watches need to be mined and are not always easy to come by. After the mining, the materials need to be heavily processed and the intricate clockwork of a watch is not easily established. It therefore costs a lot of time to produce a luxury watch. For example, a Rolex wristwatch takes approximately 500 hours to produce. Watches are incredibly popular: both as an investment and as an accessory. The demand therefore exceeds the production of the greatly sought after product.
Scarcity drives up the prices
The scarcity of watches creates an even bigger demand and drives up the prices. If you want to buy a Rolex watch directly from the dealership, the waiting time can be up to six years. Rolex increases their prices parallel to the demand of their watches, which pumps up the value of Rolex watches every year. If you’re looking for a solid investment that will continue to increase in value, a luxury watch is certainly a great way to go.
Where to buy a luxury watch?
Because the demand and scarcity are so high, people are willing to pay a premium, which drives the price up even higher. Luckily, platforms such as Chrono24 deal in new and second hand watches. Second hand watches are usually more affordable than buying from the dealership and it is certainly quicker than the six year waiting time. Watches are checked for authenticity and their state is determined by experts. This makes it a safe platform to buy from.