Watches are not just an accessory; they are considered valuable and a status symbol. Men sport branded luxury time machines in the same way as women showcase jewellery.
Some branded pieces depict the personal style of the individual wearing them. If one is preparing to buy it as collectable, they must search for a wide choice.
Vintage refers to something 25 years old, and antique refers to items almost 100 years old.
Collectables include high-risk, illiquid, unregulated items, which can involve a high transaction cost, and it may take a huge entry fee to get into such purchases.
Such investment has many advantages, where one can gain attractive returns on certain items. At the same time, it has a low correlation, providing a hedge against inflation/devaluation while supporting diversification.
Types of Investment Watches
Investors can find watches for every occasion. Even the casual types, which one can wear to a sea beach or garden, are showcased as adventurous possessions by the brand owners.
The classiest ones are that we wear to formal parties or official meetings. The new digital pieces may appear traditional but have extra mechanical works like Wi-Fi, a stopwatch, a timer, and calendars.
A traditional mechanical piece is worn with a crown, or the spring version, where the tensioned spring or the batteries turn the crowns in the desired direction. Quartz piece makes use of quartz crystals to measure time.
How to Invest and Sell Watches?
High-quality watches are a good investment as they increase the value of the time machine, although not all expensive machines have eternal value.
A quality machine may witness growth in value in future, where some of the most fashionable machines may not survive long.
The ones built on platinum or gold bases are less valuable than steel ones, but such precious pieces may look luxurious.
Getting one from a prestigious jewellery that the manufacturing company hires is best advised. A reliable seller can provide the most authentic design based on rare mechanical structures.
The most unique antique pieces in the category possess the documentation and other details supporting authenticity. Investors should carefully scrutinize and store the documents.
For all such investment that holds some appeal, it is important to understand that a limited number of buyers may want to buy it. Most such items have an inherent value determined by qualified appraisers, while there may not be a trend indicating how it is growing.
Publicly, people who see a piece of collectable may not be aware of the item's real intrinsic or market value.
These generally offer tax-efficient items, which are not valued frequently, and they may not provide dividends or income in between or the compounding returns over time. Hence, the investment made in the category is mostly in a small percentage of the total portfolio.