Luxury watches are more than just timepieces and they aren’t simply pieces of expensive jewelry either. The true worth of a luxury watch depends on many factors. Determining its actual value enables you to monitor its appreciation over time.
Luxury Watch Values
The brand of a luxury watch has a significant impact on the watch’s overall value. The quality of the reputation and longevity of the manufacturer play positive roles in the valuation of the watch. Rolex maintains a prime position as a luxury watch brand with a stellar reputation and top watch values. Although the Swiss manufacturer has high visibility with most consumers, it is not the only luxury brand selling timepieces with tendency for appreciation.
Luxury Watches as Investments
If you want to buy a luxury watch that appreciates in value over the years, you need to choose wisely. Not every timepiece will experience an appreciation in price over time. The important factors that determine the appreciation potential of a watch are brand, model, popularity, scarcity and demand. Watches that score favorably in these areas tend to increase in value throughout the years.
Watch brands to typically focus on for value appreciation include Rolex (read this blog post), Patek Philippe, Audemars Piguet, Cartier and Vacheron Constantin. Swiss-made watches also tend to have a higher value due to the quality of their movements.
It is important to note that unique and exclusive timepiece designs tend to maintain their worth over time better, as well as watches produced in limited quantities due to their more attractive exclusivity factor.
Watch Complications
Luxury watches feature “complications,” which translate to the specific functions of the watch. Common complications that increase the usefulness of a watch include calendar, day display, second time zone and chronograph.
Some complications are desirable, yet they can be difficult for consumers to navigate through. Although complications can be relatively useless, the more complications featured on a luxury watch, the more valuable it tends to have, especially in the resale market.
Watch Features that Denote Value
Specific watch features increase the value and desirability of luxury timepieces. Watches that have these features will have tend to have higher value and be better investments.
Quality materials also typically lead to better preservation of value. Watches made from 18K gold normally have a higher value than watches made from titanium or stainless steel. The percentage of precious metals in the watch is also a significant determiner of what it’s worth. Watches with a precious metal case, strap, hands, etc. tend to hold their value better after purchase.
Precious jewels encrusted in the design are also positive influences in the watch’s value. Precious jewels could be either natural or synthetic. Of these two options, natural jewels are obviously more preferable.
Some timepieces sport exotic and unusual materials that can also increase what a watch is worth. Combinations of materials such as composite resin, rubber and ceramic help create unusual watches with greater appreciation potential.
Movements also denote value in the luxury watch space. Watchmakers that design and build watch movements in-house normally infuse their timepieces with a higher degree of value. Companies such as Patek Philippe, Rolex and Audemars Piguet build their own movements, which tend to be more complex and precise.
Luxury watches with the Geneva Seal usually have the highest degree of origin and quality since their production requires the passing of rigorous Swiss tests. To pass these tests, watch movements must be designed and assembled within Geneva, Switzerland and they must adhere to specific technical requirements.
Construction and Assembly
The time it takes to create a watch has a direct impact on the watch’s value. Manufacturers share these details in the marketing of luxury watches because the longer and more involved the process, the more valuable the watches become.
Fabrication, assembly and testing can take months or even years, depending on whether a team or one watchmaker create the watch. Construction and assembly time also depends on the equipment used by the manufacturing company. Some firms utilize complex machinery and others build watches utilizing a more manual processes.
Luxury Watch Appraisal
To determine the value of a luxury watch, you can have it appraised professionally. The appraiser will assess the condition of the watch, as well as the brand, model, manufacture year, materials and availability, which combine to determine the overall value of the timepiece. Watches with original box and documentation will also tend to have a higher value. Watch appraisers can also recognize counterfeit watches based on materials, movements and designs.
Whether you intend to wear your luxury watch solely for your own delight or as an an investment, it’s a good idea to know what it is worth. This article will make it easier for you to find out its true value regardless of your objective.
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