Exotic luxury class watches investment to build wealth

The international auctions of watches from brands Rolex, Constantine, Panerai, Audemars Piguet offer potential investment opportunities in luxury physical asset classes. The jewelry and watches of eminence value must be integrated in the design. The watches with poor quality metals, gold, platinum or diamonds are of no use investing, whereas, the watches with  rarity, rich brand, age and historical values can provide significant returns in short duration of investment.  

As per Swiss Research Company Kepler Cheuvreux the total value of pre-owned watches is $5 billion per year where the online and offline auctions provide a window to find some of the rarest pieces.  Watches are part of corporate investment businesses like Lamdin, which hopes to modernize the secondary market, or search for websites or blogs, which offers to buy watches at online forums such as Hodinkee. Buyers need to find ways to get the design inspiration, history, documents and examine photos or other information related to the pieces offered offline or online.

How to start?

Look for themes, brands or features you like. Most such collections are driven by passion and interest to gain more knowledge on how to get the real ones. These days many investors are buying titanium instead of steel, platinum or gold make. The collector should focus on quality, authenticity and provenance – check the related papers of authentication. Try to gain access to the network through which one can gain more information about such items. Define the budget, which can be redefined many times during the process of collection.

How to identify a collectible?

Rolex was identified as a luxury since 1970s, where some specific traits, crystals or brand specific designs were linked to its uniqueness. Such brands are considered vintage, even in, conditions where these are technically not vintage, but are seen as collectibles due to rarity.

The price and demand can vary significantly in different categories, designs, brands and age. Two designs released on the same day by the same brand may boast extreme dissimilarity in values. Watches which are mementoes, or work as talisman can gain huge values. Not all precious metal watches are valuable. Mostly the price depends on demand and uniqueness i.e. the ones no more in circulation.  The watches auctioned by collectors who get it as a hobby are most trustworthy.  

Investment can be made with $500 or more, and later such items can get millions. These things do not undergo the phase of price bubble but it is difficult to get a legitimate timepiece, as many collectors fail to identify the real pieces.

Storing and profits  

It is believed   most watches can be insured, worn or kept in safe at home, or in a bank. Some can loan such things to museums, or pass on it to others, interested in collecting such timepieces.  

People try to gain such things as a hobby where one can easily profit from the ownership of a collection of well preserved and original vintage.

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