For centuries, watches have been excellent timekeepers. However, their purpose hasn’t merely been to tell the time. They’ve been a symbol of class and elegance, ranging from 10 dollars to millions.
With so many varieties and options, we’re forced to think about whether watches are a good investment. What exactly makes a watch profitable, and why would you want to buy an expensive one in the first place?
In this guide, we’ll talk about all these things in detail: let’s dive into the rabbit hole of time.
Are Watches a Good Investment?
Watches tell time, track fitness activities, and even help us determine the moon’s current phase. There are many types of watches out there, but should you invest in one or not?
When you look at the history of watches, they haven’t changed much over the years. The main change was in their appearance. From being mounted on a wall, watches gradually became fashion accessories. Today, you can pick up an affordable Swiss watch anywhere.
Many people invest in luxury watches because they want to be seen wearing high-quality items. Even though these watches are expensive, they also provide financial benefits.
Wristwatches as Assets
As it comes without saying, a watch is your walking asset. Just like expensive cars and jewelry, a luxury watch can provide a means of financial security.
This is especially true for the case of vintage watches, as they regularly get sold for hundreds of thousands of dollars, if not millions. If you have an old watch that was passed along in your family for generations, you could very well be sitting on a gold mine.
In terms of financial investment, a luxury watch can be considered the equivalent of a car. In case you need the money, you can easily liquidate it for almost the same price, given that it didn’t get broken.
A Symbol of Luxury
Luxury watches aren’t bought to tell time. If that were the case, then a 10-dollar watch would do well. Their key highlight stems from the symbol of class they depict.
Most people find appeal in luxury watches as part of a fashion accessory. Investing in a watch can be quite fruitful in this regard, as it helps you stand out and makes a lasting impression.
Watches aren’t always about putting up a show, but they also serve utility. Apart from the obvious use of telling time, they can be used as a stopwatch, a calendar, and even to determine the phase of the moon.
With the rise of smartwatches, these features have only exploded. Newer watches are no less than a handset, allowing you to listen to music, tell directions, act as a compass, and of course, tell time.
With a plethora of features all on your wrist, modern watches have almost become a necessary investment.
How Can Watches Be Profitable?
After the pandemic of 2019, the antique business picked up the pace and met a whopping 30% increase in interest among the younger generation. While we won’t go into details about what has made the antique business a trend again, it can’t be argued that flipping antiques is an exceptionally good way to make profit. So, are watches a good investment? Definitely.
Vintage watches are a prime example of antiques: they are regularly sold in English and Dutch-styled auction houses for high prices. If you’re wondering whether investing in watches could be profitable, you’d be surprised to know flipping watches could very well become a sustainable source of income on its own.
What to Look for When Buying a Watch
Watches are always a great accessory for any outfit. They can add some extra flair to your look if you know how to pick the right watch.
To help you decide, we’ve listed factors to consider when buying a wristwatch.
The best timepiece brands have been around for centuries. Offering high-quality watches for many years, they have been able to develop their own unique styles and designs that stand out among their competitors.
Many of these high-end watch brands have experienced the same highs and lows as other industries over the years.
Even if you’re not worried about the brand, it can help you decide: each of the popular watch brands, like Rado and Tissot, come with their own heritage, offering high quality and a warranty. Also, a branded watch is likely to resell better, if it’s well-known.
There are different watch movement types that offer their own sets of features. While some movements are simple, others have more complex mechanics. Some of these watches are more reliable, while others are known to have problems with frequent battery drain.
Depending on the movement, your watch’s internal working will vary significantly. For instance, mechanical watches need to be wound every few days, whereas automatic watches stay powered by using the energy of motion. Quartz, on the other hand, uses batteries which need to be replaced every few years.
Essentially, you have two types of watches, digital and analog. Depending on your preference, either one can work for you.
Analog watches often use a minute and hour hand to show the time on the dial, whereas digital watches use an LED or LCD display.
For a long time, people have preferred analog watches, due to their aesthetics and vintage look. But, with the dawn of smartphone watches, things have drastically changed.
If you’re looking for a plethora of features, a smartwatch could be your best bet. However, if you’re more focused on getting a long-lasting timepiece that can serve generations ahead, then it’s better to go with a classic analog watch.
A smaller case diameter will look smaller on a wrist than a larger case size. A small watch will fit comfortably on the wrist without making it feel bulky. If you want something bigger, go with a larger case diameter.
Hands are either fixed or automatic. Fixed hands require manual winding, while automatic hands do not require manual winding. When choosing between two watches, consider how often you would wear the watch. Automatic watches are generally easier to use, especially if you’re a beginner.
Band material should match the style of the watch. Materials used for bands include leather, stainless steel, rubber, and metal. All of these have their own pros and cons, and depending on your needs, your choice can vary.
For instance, leather bands are great for dressier occasions, such as formal events. Stainless steel bands are durable and resistant to water damage.
Similarly, rubber bands are comfortable and flexible, making them ideal for casual situations. Metal bands are extremely durable, long-lasting, and can withstand extreme temperatures.
It’s important to note that durability also varies for each of these bands. Stainless steel bands will last much longer, in comparison to rubber and leather ones.
A watch that isn’t water resistant is not likely to last long. This is especially true in the case of mechanical and smartwatches.
If water leaks into these watches, they can quickly malfunction and rust: this will essentially make the watch useless. If you’re investing a lot of money into a watch, it’s advised to go with one that has a high water resistance rating.
A watch is only good when it feels comfortable. A heavy watch can not only be irritating, but can also cause fatigue.
When buying a watch, choose the one which feels most comfortable on your hands. It shouldn’t be heavy or too light that it could break.
Clasps are used to keep the band attached to the face of the watch. There are several options for clasps including folding clasps, pin clasps, tang clasps, and buckle clasps. Each type of clasp has its pros and cons, and requires slightly different techniques to install and remove.
We advise you to go with the option that you find comfortable.
Dial color is a personal preference, but white dials are classic and timeless. Black dials can make a watch pop more, while gray dials create a softer look. Blue dials can add a subtle touch of class to an otherwise simple design.
Watches can be extremely profitable, and with the investment potential that vintage models offer in the luxury watch market, it never hurts to get one for yourself.
Even if you do not invest in a watch as a means of making profit, its looks alone can add to your overall fashion while letting you keep track of time. Similarly, if you’re looking for utility, opting for a digital watch, such as a sports one, could be a good way to go.In this article, we asked, “are watches a good investment?” We believe watches are a good investment. We discussed their worth in the financial markets, and the factors to consider when buying a watch. Keeping track of time, we’ll end our article here. Thank you for reading.