Is watch an investment or an expense?

[blufish]

Some people believe that if you buy the right watch and maintain the watch, overtime the value will appreciate and it will eventually be an investment.

Others, would prefer to buy a watch, wear it everyday and enjoy their purchase. Of course, daily usage would subject the watch to wear and and tear and which will eventually be an expense.

Which school of thought are you?

[lilpronaz]

IMO, it's more appropriate to call it value retention. Only a small percentage of watches appreciate in value when factoring in economic variables such as inflation, etc. Cutting the long story short, watches are never good investment item. Just like shares, putting your money in watches will be sheer speculation.

For brands like PP, VC, AP and Lange, the value retention is much higher (possibly due to the prestige). As for the rest, the value retention varies from model to model.

[Scott C.]

I never thought of buying watch is an investment (although i did earn some in some selling but most of the time, loses )...i started this because I really love watches since i was very young

In my opinion, not even PP, VC, AP worth investing but maybe some rare model which hardly come by (Unless you have very very deep pocket or super regular, otherwise, how you get a chance to purchase those rare timepieces?)..then again, you need to know/have right media to sell it in order to make money (get back your ROI), otherwise, it's not really that easy I once read an article, if one thinking of being rich (or earn some) by investing in watches, you (1) need a lot of luck and (2) put everything (i mean all your hard earn $ and your effort) into watches... which i think it's very true.. just my opinion la..

Cheers!
Scott

[shijiko_7]

For me, I liked watches and admire the beauty of the engine.. if u really wanna get those who will help you out during financial crisis, you can always go for the Crowned "R" and luxury ones...

I am saving up to buy one or a pair of watches, to pass down from generation to generation... hopefully can get soon...

[lilpronaz]

Scott, well said.

Shijiko, whether it's Rolex or not, you are most likely going to make a loss when you flip the watch. I don't see how it can help during financial crisis. I know the right watch for you to pass down from one generation to another...a PP...hmmm..5960 is great or perhaps a Nautilus.

[David_cheong]

Loving and buying watches is a disease. All the watches lovers here are affected. There is no known cure at the moment.

When you see a loved one (I mean watches), you go to any length to acquire - even to the extent to 'pawn' your other loved ones, just to get your latest holy grail. Thus in this scenario, investment is out of the picture. You be lucky if you sell at a profit, if not then some losses.

The only expenses, I see in this scenario are the expenses that ones spend on the servicing and upkeep. Definitely you would surely maintain your watches to keep them in tip top condition. Base on my many experiences, a simple service on branded watches takes you back by several bucks.

If you have deep pocket, you will surely buy a very popular model for the sake of owning it - maybe for a while. But then your investment would be tied up for as long as you owned the fine piece. Selling it later to recover your monies, its very much depends on the market forces. In this manner, I would rather (be better) to invest in shares.

As is, I have to say again, buying a watch is never an investment but an expenses all the time.

my 2 cts worth.
DC

[terrenceterrence]

IMO, it's more appropriate to call it value retention. Only a small percentage of watches appreciate in value when factoring in economic variables such as inflation, etc. Cutting the long story short, watches are never good investment item. Just like shares, putting your money in watches will be sheer speculation.

For brands like PP, VC, AP and Lange, the value retention is much higher (possibly due to the prestige). As for the rest, the value retention varies from model to model.

AP ROO series may still break even or retain it's value but in no way it can make you any serious dough. unless you're a pre-owned shop owner who buys low and sell for a profit.

if you seriously wanna make any money from watches...keep it for 20-30 years and then sell. having said that there are better avenues for ROI and it's definitely not watches.

even for rolexes, the profit is getting to wear it with not much of a depreciation. this only applies to certain sports model i am afraid. the DJ, Explorers I and II take such a hit that it amkes more economical sense to buy pre-owned.

have anyone here checked prices of BNIB Lange, PP, VC? it's as much as a 40% depreciation.

like the saying goes... "the only way to make a million from watches is to start with 2"

enjoy your watches and wear it in good health. trade it up and like most hobbies..it's hardly profitable but the satisfaction is immense

cheers

[chrisyen]

buy new watch can never make money....
buy pre owned watch u may make money if u know the markek very well!
buy vintage watch can make alot of money if u know the watch very well... u can also loose big money if u bought fake!

buy watch n keep? sorry fren.... thats not investment... by the time the price increase... money value also gone....

so BUY THE WATCH IF U LIKE IT.... WEAR IT, ADMIRE IT, ENJOY WATCHING IT TICKING.... SHOW OFF!!!
EVEN U DONT WEAR.... PPL STILL CONSIDER THATS A PRE OWNED / USED WATCH !

[shijiko_7]

Scott, well said.

Shijiko, whether it's Rolex or not, you are most likely going to make a loss when you flip the watch. I don't see how it can help during financial crisis. I know the right watch for you to pass down from one generation to another...a PP...hmmm..5960 is great or perhaps a Nautilus.

Lil : PP is TOO DARN EXPENSIVE for me.... :| ..... i know THAT too... or JLC...

[N79KL]

It depends on you, anything can be an investment if you know what to do with it. Some people can make money out of paper clips or whatever.
Look at those used watch shops, they are making loads of money dealing in watches. Or look at how they buy new Panerai from ADs and resell it for a profit.
Maybe this is not the perspective you are looking for, but I guess if you apply the same principles, you too can make money and call this an investment.
For me, Im not that smart, so its an expense  

[Cocas]

Some people believe that if you buy the right watch and maintain the watch, overtime the value will appreciate and it will eventually be an investment.

Others, would prefer to buy a watch, wear it everyday and enjoy their purchase. Of course, daily usage would subject the watch to wear and and tear and which will eventually be an expense.

Which school of thought are you?

Watch is neither an investment nor expense. It's an enjoyment .

[andrewhtf]

it's a hobby, and hobby requires expense.
unless if you continuously and consistently make money from your hobby lah.

so i buy watch and i wear it. granted that none of my watches are fine watches so yeah, maximise it kaw2!

I know the right watch for you to pass down from one generation to another...a PP.

any reason for this thought? was it because of  Patek's marketing/advert that keeps on harking that "You never actually own a Patek Philippe. You merely take care of it for the next generation." or was it because Patek's movements are really timeless that whatever watches they make in 1950's still has abundant parts inventory ready to be serviced anytime for another half century to come?

just want to know.

[phat7]

If planned it can be an investment i.e. To collect all Rolex from James Bond series and house in presentation box for sale, I've personally seen this done with great returns. But otherwise it's a hobby.

[ebertho]

Hobby la i.e expense. For investment then you will end up with only few brands e.g Rolex, PP , etc...pretty boring if the focus is only value appreciation. There are lots more interesting fine watches out there which dont hold their value well.

[mnazri.tan]

Wondering and hope to get some answer. A very specific model, wonder if anyone know the answer.
For PAM 000 , base model.... I notice that the RSP has gone up for the past...say 10 years.But how about the pre owned model. Does it retain good value ? How much would you lose from flipping it ?

Thank you

[Watchnut888]

It's depend bro.  From this point you should know which brand to go for and from my view getting a pre-owned brand like Rolex Sub should be an investment 

[tonykpk]

Yes the Pam 000  pre own is inching up in value so does the 111,112,and 005.

Wondering and hope to get some answer. A very specific model, wonder if anyone know the answer.
For PAM 000 , base model.... I notice that the RSP has gone up for the past...say 10 years.But how about the pre owned model. Does it retain good value ? How much would you lose from flipping it ?

Thank you

[turinbrakes]

I have a PAM 111...usually people will ask me whether I wanna sell or not...I replied I am open for offers..but til now the offers I get all mmmheeehhhh....so no..i don't think luxury watches are an investment.

[Jedirat]

Should treat as expense for your hobby rather an investment. Watches normally depreciated against its original value, even though for Rolex, at current price level, it will take years for you to sell at your original purchase price. Just my 2cent.

[fuzzy]

It's a hobby, so like any other hobbies some pieces will turn into a nice serendipitous investment while others will not.

Your cheap Seiko given to you by your loved one would probably only be sold at a loss, but the value to you far exceeds a expensive piece you have.

[John0202]

those watch for investment is high end watch with limited edition. if general watch, i dont think will have surplus when selling off.

[DeepBlueSea]

Watches value normally depreciate over time.

However , if the country currency keep dropping, no harm to get 1 now, as the price of watch will be going up over the years, not due to the watch value going up, but the currency value keep dropping

[theseira]

For modern watches it depends on the piece and the price you paid for it.

[watchkeeper]

Depends on the brand and model. Pre-owned watches can be a bargain sometimes and you may not lose when resell again.

[adamjohari]

I think if we took the average of people who buy and sell watches... the average would be a negative.

So watches are most likely an expense.

For the common person that is.