Why Do People Invest in Watches?
When spending upwards of thousands of dollars on a single item, it’s arguably more responsible to understand both the inherent value (the “why” of a particular watch; what draws you to it, what sparks your joy, why to hold on to it), and the secondary market value (if you had to sell it, how much would it go for, does it lose, gain or hold its value, how fast would it sell, would anyone even want to buy).
And when we’re talking thousands of dollars, to even hundreds of thousands and millions, we enter into the realm of true asset classes. Indeed, watches have become a way to diversify and spread wealth, similar to how automobiles and fine art have in recent decades. On the one hand, we have profit-seeking, and on the other, the mere comfort of knowing your money is generally “safe”.
Which Are the Best Watch Brands to Invest In?
The easy answer: Rolex, Patek Philippe, Audemars Piguet, and popular independents such as F.P. Journe and Akrivia.
The vaguer answer: Watches of good investment value can be found across the full spectrum, from Swatch and Seiko to the upper echelons of masters like Philippe Dufour and Roger W. Smith, model dependent.
The truth: Any brand worth investing in will have some mix of the factors listed above, namely rarity, condition, heritage, and some shade of “X-Factor”.
These brands will be harder to get (ex: the Rolex waitlist, have documented histories of greatness or contributions to the watch craft and industry, and will find their own organic popularity through the movers and shakers of the hobby, ultimately garnering more interest from the community at large (ie, more demand).
The Twenty Best Investment Watches of Twenty Twenty Four (for your consideration)
As a premier flagship steel sports Rolex model, arguably any iteration of the Rolex GMT Master can be considered an investment piece due to the iconic status the watch holds in the next Rolex lineup and pop culture. However, particularly in the 16710 produced from 1989 through 2007, we see an “end of an era” in true tool watch form before Rolex makes the switch to upgraded materials decidedly more luxury leaning such as a ceramic bezel, updated bracelet and maxi dial and case size.
Available with the iconic red and blue “Pepsi” bezel insert, the black and red “Coke” insert, or the all-black bezel variation, the 16710 is heralded by collectors for its iconic looks and tool watch practicality. And with its 40mm case diameter, 12.4mm thickness, 47.5mm lug-to-lug, and 20mm lug width, we have classic case size proportions suitable for various wrists for those who find the modern variant a bit too large.
Another darling of the watch-collecting zeitgeist (perhaps THE darling), the Patek Philippe nautilus 5711, discontinued in 2021, is perhaps a surefire addition to any watch investment portfolio. Originally debuting in 2006 with several references among its ilk in steel, gold, platinum, and gem set beauties over the years, the 5711 was not actually all that popular upon its initial release.
With its 40mm diameter case, svelte 8.3mm thickness, and that iconic Gerald Genta case design (call them “ears”, and you’ll never unsee it again), the stellar casework and finishing combined with a top-of-the-line comfort on the wrist meant that what was once under the radar and eclipsed by its kin such as the reference 5712, would soon see eventual success with the more recent craze of steel sports integrated bracelet watches (which I dub the “Genta Wave”).
Another case of an overlooked watch becoming a hit under all the right conditions: The brand heritage of Patek, the storytelling X-Factor of Genta design, and the rarity of steel sports Patek watches all almost guaranteed the success of the 5711 which would eventually see auction results more than six times its MSRP.
Quick exercise: Picture a watch in your head. Any watch. What did you see? Chances are, you saw a dive watch with a black rotating bezel, a black dial with white hands and indices on the archetypal oyster bracelet. Its name? The Rolex Submariner.
Originally launched in 1953, the Rolex Submariner and its Date counterpart (there is truly only the “Submariner” and “Submariner Date” in official Rolex terms) are definitive icons not only in the watch community but in the broader world community as well. If Rolex is the most famous luxury watch brand, the Submariner is, by default, its most iconic watch.
And you don’t have to take (pre-Brosnan era) James Bond’s word for it, or everyone who decided to mark a milestone in their lives by purchasing a Submariner in the decades since. Among its evolutionary line, the 114060 is a particularly interesting watch from an investment standpoint. Being the last of the 40mm case size Submariners (replaced by the 41mm 124060 in 2020), the 114060 actually came out a year after its date steel counterpart (116610LN).
With a shorter run than the 116610LN and its relatively smaller overall production numbers (with the Date version eclipsing the Submariner with an estimated 2:1 ratio), the 114060 occupies a unique slot within the Submariner lineup as a safe investment given the overall popularity of the Submariner line, and the relative rarity the 114060 presents within it.
An icon, and one of the most popular watches on the planet, the Audemars Piguet Royal Oak 15202 “Jumbo” was discontinued in 2021. Discontinue any watch of the 15202’s iconic stature and status, and you’ll almost always find a safe placeholder in your watch collection.
After all, if an uber-popular watch isn’t being made anymore and fewer and fewer can be found, rarity and price sensitivity ensue. Acting as a clear call back to the original steel Royal Oak as designed by Gerald Genta, the contemporary 15202 was announced in 2012 as part of the 40th anniversary of the Royal Oak.
In the years since, we’ve seen various stunning interpretations of the 15202 in White Gold (15202BC), Titanium and Platinum (15202IP), and even full Yellow Gold (15202BA). But, it’s arguably the original steel reference (15202ST) that is the definitive luxury sports watch.
After all, the Royal Oak is the original luxury sports watch. With a 39mm size case, 8.1mm thickness, powered by the calibre 2121, and finished to perfection, anyone lucky enough to have the 15202 on their wrist has already made it; investment potential be damned.
The Audemars Piguet Royal Oak Offshore Chronograph (26470OR) was first introduced in 2014. Featuring a pink gold case, bracelet, and dial, encased in a 42mm diameter and 14.6mm thickness water resistant to 100m, the Offshore Chronograph is an unabashed luxury sports watch.
With the Offshore line being traditionally a testing ground for Audemars Piguet in materials, limited edition models, and endorsements, this particularly robust (read “massive”) Offshore is a thick chunk of pink rose gold material, accentuated with an integrated bracelet recalling the original Royal Oak beauty of yore, while coupled with ceramic crown surrounds and chronograph pushers, a remarkably modern addition, along with a sapphire display case back.
AP is truly at the top of the game with their level of finishing and refinement, and it’s no wonder that the dichotomy of the Offshore’s seemingly uncharacteristic bold and rough sportiness coupled with a sense of ultra sophistication has created one of the more popular watches for collectors of the brand to date. In terms of investment, sometimes you need to spend money to make money, and the Offshore is indeed one fun way to do it.
Conclusion
“Investment” has become almost a dirty word in the watch hobby. But the factors that make a good investment watch are also the things that make a watch worth collecting: Rarity, personality, differentiation, and time-proven design.
Furthermore, understanding investment value and thinking of watches as an asset doesn’t need to negate the joy we get from owning them. It’s merely one part of the spectrum in our collective watch journeys and ultimately helps us understand our tastes and preferences in a new light.