Watch as Investment

[Chipi]

Newbie here and the world of horology. My question is how watches become an investment instrument when depreciation begans immediately you put it on your wrist?
I notice many are selling their Oris, Rolex .. etc ... below retail price. And these are good watches. Hell, I was even thinking buying one from them. So how is this investment? This is no difference than ppl ugprading their handphone by selling/trading off their old ones.

Maybe taikos here can enlighten me on the concept of investment when it comes to watches. 

[mike]

Yes, it is true that once you remove the sticker, cut the chain, and put it on your wrist, the value of the watch drops. Only few watches can be taken as an investment, like Rolex ,PP or maybe Lange. But for a watch to increase in value, it takes decades, normally after the watch is discontinued. Example like Rolex 1680, it is selling at an average price of $15k USD now, and the PP 5970, selling at a phenomenal price that can even reach $400k USD. If you buy a brand new watch, it is less likely to be taken as an investment, most people take it as a hobby and appreciates the watch, and to pass down to the next generation. Otherwise, it is also easier to sell and not lose too much in order to upgrade into something better. Different watches hold different value, not all watches can be taken as an investment. Anyway, thinking about the resell value of a watch when buying it is just like thinking about divorce before marrying. Only think about investing in a watch when you have the ability to.

Correct me if I'm wrong. Cheers

[haaha]

Interesting topic (for me) and I want to know too... 
How about Swatch? Is the value can be increase too? :V

[contender]

Watches is never meant for investment just like cars is also not an investment. Just enjoy the watch or the car that you like .... 

Although there are instances of the watch appreciates in value if it is limited edition or rare pieces of the likes of heavyweights eg. Rolex, PP, Lange etc but it takes time and luck too if you chose the right one.

Resale value for watches ...take a look at the pre-owned section or the merchant corner at the forum will give you an indication of the resale value of watches.

[Chipi]

Watches is never meant for investment just like cars is also not an investment. Just enjoy the watch or the car that you like .... 

Although there are instances of the watch appreciates in value if it is limited edition or rare pieces of the likes of heavyweights eg. Rolex, PP, Lange etc but it takes time and luck too if you chose the right one.

Resale value for watches ...take a look at the pre-owned section or the merchant corner at the forum will give you an indication of the resale value of watches.

Yup .. tht's where I conlcuded my idea.
Saw some Oris (tempted to buy) in the pre-owned section on sale only after short period of owning them ... some still have original warranty intact. So was wondering why the sale?  Change of heart maybe. But with those nice watches, I'l be drooling to own one. 

By the way, where can we check if some watches has gone UP in price? That would be good information/knowledge to have 

[watzisname]

Again with this fallacy.. Always with this question: Should I use my 30k FD to buy a Rolex? Even if let's assume the value of a Rolex holds, there is always the risk of damage or worse; theft

[kenji1903]

Yes, it is true that once you remove the sticker, cut the chain, and put it on your wrist, the value of the watch drops. Only few watches can be taken as an investment, like Rolex ,PP or maybe Lange. But for a watch to increase in value, it takes decades, normally after the watch is discontinued. Example like Rolex 1680, it is selling at an average price of $15k USD now, and the PP 5970, selling at a phenomenal price that can even reach $400k USD. If you buy a brand new watch, it is less likely to be taken as an investment, most people take it as a hobby and appreciates the watch, and to pass down to the next generation. Otherwise, it is also easier to sell and not lose too much in order to upgrade into something better. Different watches hold different value, not all watches can be taken as an investment. Anyway, thinking about the resell value of a watch when buying it is just like thinking about divorce before marrying. Only think about investing in a watch when you have the ability to.

Correct me if I'm wrong. Cheers

i'm very curious what makes the Red Sub so sought after?

[theseira]

I know that some Rolex and Patek pieces are actually investments.

[mike]

Yes, it is true that once you remove the sticker, cut the chain, and put it on your wrist, the value of the watch drops. Only few watches can be taken as an investment, like Rolex ,PP or maybe Lange. But for a watch to increase in value, it takes decades, normally after the watch is discontinued. Example like Rolex 1680, it is selling at an average price of $15k USD now, and the PP 5970, selling at a phenomenal price that can even reach $400k USD. If you buy a brand new watch, it is less likely to be taken as an investment, most people take it as a hobby and appreciates the watch, and to pass down to the next generation. Otherwise, it is also easier to sell and not lose too much in order to upgrade into something better. Different watches hold different value, not all watches can be taken as an investment. Anyway, thinking about the resell value of a watch when buying it is just like thinking about divorce before marrying. Only think about investing in a watch when you have the ability to.

Correct me if I'm wrong. Cheers

i'm very curious what makes the Red Sub so sought after?

In simple terms, the watches are fairly rare. The practice of painting the dials with red paint disappeared in the mid-seventies and in the intervening years many, many Red Subs had their cool red-painted dials replaced during service with the more common white versions. Because of their cool look and relative rarity, the prices on the Red Subs had climbed into fairly lofty territory as recently as a few years back. When the vintage market hit its modern apogee about two or three years ago, it wasn’t uncommon to see Red Subs sell for two or three times the price of a more common white 1680.

[el118]

i'm very curious what makes the Red Sub so sought after?

I believe these are hype played by some industry veterans. Technically it is not superior to current ceramic models, aethetically it is not special. but the rarity in additional wording in red that contributed to all the hoo ha.

I believe there are many many more models of other watches which are "rarer" than the red sub but just that they are not "played up or boosted" by the industry.

If you buy the idea and would like to possess one that is "perceived" to be exclusive, by all mean go ahead. you may indeed make some money.

But be careful that with the amount of money the Red sub is fetching, there are lots of scam that may sell a fake one (not necessary fake watch but fake dial) that is highly deceiving.

[kenji1903]

thanks mikster and el118... cos i wasn't able to find any info whether the Red Sub was technically unique...

it's just because its a limited production before they changed it to white

[swleong]

Those who sells you the idea of watches are investment screwed you up, stop wondering, watches are not investment.

Ok, maybe 0.000001% of the watches out there are investment, like the Rolex Daytona Paul Newman 1969...

[Chipi]

I use to work for insurance company as Risk Engineer.
There are instances when rich customers insured their watches so our department have to check their security where their watches are kept. Personally, I have never been to such survey but my bosses attended a few. There was once where the collection was insured for RM5 million. I believe it shld worth more than that by now. Tht was 10 yrs ago.

[Chipi]

Those who sells you the idea of watches are investment screwed you up, stop wondering, watches are not investment.

Ok, maybe 0.000001% of the watches out there are investment, like the Rolex Daytona Paul Newman 1969...

Apart from design and limited edition factors, the jewels and metal (i.e gold) can be factors for investment. Of course, nowaday synthetic jewels are abundantly used for watchmaking, the display pieces for the dials and face are real jewels worth as investment too.

[kenji1903]

I use to work for insurance company as Risk Engineer.
There are instances when rich customers insured their watches so our department have to check their security where their watches are kept. Personally, I have never been to such survey but my bosses attended a few. There was once where the collection was insured for RM5 million. I believe it shld worth more than that by now. Tht was 10 yrs ago.

insured that much just means they bought it at that price... not necessary it can be sold that high...

[sinbad2k]

I really think it's better to invest in properties, stocks, unit trust funds than investing in watches. Not all watches has that novelty that commands higher resale value. Though the real jewels on the watch might be worth something, I reckon it will not retain its value. There are so many brands in the market that carry models with real jewels.

Even if you plucked out those jewels from the watch and sell it to jewelers, they might not want it cause not much they can do with it. Or probably they could make a ring or ear ring from it, what will happen to the watch itself? The jewels and the watch has to be together and that comes back to the novelty of that watch.

[yo_watch]

don't even imagine that u can make any money from sell/buy watch.  u mush first love it and enjoy it then after several years u  will find it worth for everything not only money.

[contender]

Newbie here and the world of horology. My question is how watches become an investment instrument when depreciation begans immediately you put it on your wrist?
I notice many are selling their Oris, Rolex .. etc ... below retail price. And these are good watches. Hell, I was even thinking buying one from them. So how is this investment? This is no difference than ppl ugprading their handphone by selling/trading off their old ones.

Maybe taikos here can enlighten me on the concept of investment when it comes to watches.  :Cheers:b

Not bad for a newbie .... already have gold rolex for sale in the pre-owned section asking for RM60,000 

So was the gold rolex a good investment 

Please share with us your investment in watches .. 

[chrisyen]

Invest in watches? Collecting watches? Watch price appreciate every yr...
Sales man talk nia.

Buy a watch to wear... Always better! Price up or down also no effect on u

[Chipi]

Newbie here and the world of horology. My question is how watches become an investment instrument when depreciation begans immediately you put it on your wrist?
I notice many are selling their Oris, Rolex .. etc ... below retail price. And these are good watches. Hell, I was even thinking buying one from them. So how is this investment? This is no difference than ppl ugprading their handphone by selling/trading off their old ones.

Maybe taikos here can enlighten me on the concept of investment when it comes to watches.  :Cheers:b

Not bad for a newbie .... already have gold rolex for sale in the pre-owned section asking for RM60,000 

So was the gold rolex a good investment 

Please share with us your investment in watches .. 

Of course there's a good return. It's for the gold. 
I'm a gold bug ... sold it to another gold bug ....
Not too sure abt the watch though ... just learning from this forum if watch can be another option as investment. 

[schnitzer]

Don't get trapped into believing that watch is a good investment. I've made that mistakes several years ago...Friends convinced me to purchase second hand Rolex, telling me how convenient it is for me to dispose it at any pawn shop if I need money. I had a nice windfall back then, and went crazy buying several 2nd hand Rolexes. Since then I closely keep track of the prices and it hardly moved. I've asked watch dealers to know how much they're willing to take a piece that I particularly like to sell, and they quoted me a price of ard 20% of what I've paid! Needless to say, I decided to keep the watch.

Learn from my lesson...A watch is never an investment. It's something you buy to enjoy, and if it ended up becoming more valuable along the way, that's a bonus. So my friend, get a watch that you like and if you want to invest, then go for stocks or properties. Just my 2 cents...

[sidestreaker]

Buying a watch for investment is just a weak justification to spend X amount of money on a wrist watch.

I echo most of the forum members here when I say buy and wear what you like.

Emotional satisfaction and instant gratification should be only returns as far as investment on watches is concern.

[engkow]

Don't get trapped into believing that watch is a good investment. I've made that mistakes several years ago...Friends convinced me to purchase second hand Rolex, telling me how convenient it is for me to dispose it at any pawn shop if I need money. I had a nice windfall back then, and went crazy buying several 2nd hand Rolexes. Since then I closely keep track of the prices and it hardly moved. I've asked watch dealers to know how much they're willing to take a piece that I particularly like to sell, and they quoted me a price of ard 20% of what I've paid! Needless to say, I decided to keep the watch.

Learn from my lesson...A watch is never an investment. It's something you buy to enjoy, and if it ended up becoming more valuable along the way, that's a bonus. So my friend, get a watch that you like and if you want to invest, then go for stocks or properties. Just my 2 cents...

I bought my used Rolex 1601 in 1991 for RM 750 sent repair RM400 the watch shop onwer offer me
RM 2000 and again sent repair in 2008 another RM 400 this he offer me RM 4000 now friend offer me
RM 6000 what do you think.....as investment....

[Chipi]

Don't get trapped into believing that watch is a good investment. I've made that mistakes several years ago...Friends convinced me to purchase second hand Rolex, telling me how convenient it is for me to dispose it at any pawn shop if I need money. I had a nice windfall back then, and went crazy buying several 2nd hand Rolexes. Since then I closely keep track of the prices and it hardly moved. I've asked watch dealers to know how much they're willing to take a piece that I particularly like to sell, and they quoted me a price of ard 20% of what I've paid! Needless to say, I decided to keep the watch.

Learn from my lesson...A watch is never an investment. It's something you buy to enjoy, and if it ended up becoming more valuable along the way, that's a bonus. So my friend, get a watch that you like and if you want to invest, then go for stocks or properties. Just my 2 cents...

I bought my used Rolex 1601 in 1991 for RM 750 sent repair RM400 the watch shop onwer offer me
RM 2000 and again sent repair in 2008 another RM 400 this he offer me RM 4000 now friend offer me
RM 6000 what do you think.....as investment....

I believe the message they are conveying is buy what you like and within budget. Have no intention as investment.
If you are lucky, the watch in hand appreciates in price. And eliminate "unlucky" event when watch depreciates in price since you like the watch you bought the first place. 

[Chipi]

By the way, Engkow. Which repair shop you sent your watch too?
I'm looking to repair my Zodiac.
Nobody seem to answering my questions in the other thread.
Thank you in advance.