[alwaysfreewilly]

I dont have that many watches in my collection as yet!

but being in this industry for 4 years now, I have read up alot, study quite a bit and seen quite abit, attend courses, exhibition and the omegamania, I would say I am definitely more 'educated' than the 19-year old me.

The question that I am often asked mostly from friends, is ' I dont collect watches, but I want to buy one to invest. Which would you recommend? My budget is anything from $1 - $10,000'

My first reaction is always to give a smile ,laugh abit and then give my opinions about the question.

So what would you say to novice buyers, or collectors?

 

[JBHII]

I dont have that many watches in my collection as yet!

but being in this industry for 4 years now, I have read up alot, study quite a bit and seen quite abit, attend courses, exhibition and the omegamania, I would say I am definitely more 'educated' than the 19-year old me.

The question that I am often asked mostly from friends, is ' I dont collect watches, but I want to buy one to invest. Which would you recommend? My budget is anything from $1 - $10,000'

My first reaction is always to give a smile ,laugh abit and then give my opinions about the question.

So what would you say to novice buyers, or collectors?

I'm going to take something of a contrarian view here to the common wisdom that watches should be bought for reasons other than investment.

If I add up the money I've spent on my personal watch collection, and I add up the money I've made from selling watches for more than I've paid for them, I don't have a whole heckuva lot of money in my current collection. It is possible to make money on watches. Just buy low and sell high. You need to be an educated buyer though.

If someone wants to buy a brand new watch and sell it for more at some point in the future, that's pretty hard to do. better to find a nice vintage Rolex or Patek in less than desirable condition, fix it up, and sell it for more later.

 

[boscoe]

You can make money in the watch business - otherwise there wouldn't be a business. John hit it on the head, buy low, sell high. Use your head, not your heart - but what's the fun in that? If you're talking about collecting, you're talking about passion. If you want to do business, play the stock market - or open a watch store.

But if you want to "invest" in watches, avoid brand new pieces - unless you can buy them well below wholesale.. John and I agree: even then your money is better spent on used pieces from established brands with a history of rising prices. Basically, that means Rolex and Patek.

And what fun is that?

 

[bullosa]

Rolex pre-owned sounds like a good option. Here in Asia, Rolex is still reigns.

 

[timefinder]

With that kind of money, you would be better off investing in Mutual funds and/or stocks, and maybe ETFs. This all depends on your risk tolerance, etc.

If you are looking to do this as a hobby, have fun; but, if you are looking at it from a strict profit standpoint, I think your $$$ would be better elsewhere.

Just my two cents, and that part was free.

 

[GradyPhilpott]

Read these:

http://www.chronocentric.com/watches/buyersguide.shtml#resale

http://www.chronocentric.com/watches/buyersguide.shtml#resale2

http://www.chronocentric.com/watches/buyersguide.shtml#collectible

http://www.chronocentric.com/contents/

Investment means that you put up so much money with a guarantee that you will realize a given return for that money, e.g., a certificate of deposit.

Anything else is speculation, e.g., the stock market.

I'm pretty new to this watch thing and I'm not in it to make a profit, but there is one thing I've noticed over the years: Mickey Mouse watches are always popular with collectors.

 

[145]

A watch is not an investment. Your IRA/401K is an investment as is a house, your family and your friends. PP and others have proven just how the watch market can be manipulated to keep prices high.

Consider a watch either an impulse purchase or a clothing accessory.

 

[JBHII]

A watch is not an investment. Your IRA/401K is an investment as is a house, your family and your friends. PP and others have proven just how the watch market can be manipulated to keep prices high.

Consider a watch either an impulse purchase or a clothing accessory.

What's the difference here Koi? Plenty of people have lost money on houses, IRAs, and 401ks....

 

[bullandvodka]

The best way to make money in anything, but especially with watches is to "Be The Jackal". Now, Jackals aren't exactly glamorous animals. After all, their purpose is to eat the dead. But we don't hate mushrooms, crab, lobster, and other members of nature's clean up crew!

The Jackal's mantra is that you make money on something when you buy it not when you sell it. Or restated, this means you buy it for a price that you know is already lower than what you can sell it for. How is this possible? Well just like the Jackal, you often have to associate with other's that have been less unfortunate. I've made my best "Jackal" purchases buying after people get too extended on credit, divorced, and the occasional death.

While the events are often sad, I feel that the Jackal has been able to step in and help others out in their time of need. The people that need assistance get it. Furthermore, the Jackal gets a few additional points of margin to make it worth their while. After all, even a Jackal has pups to feed.

 

[timefinder]

What's the difference here Koi? Plenty of people have lost money on houses, IRAs, and 401ks....

Historically, people make money in 401Ks, IRAs, and houses. These markets flucuate, and have over time; however, most people do make money over the long term, and averages of 7% a year is a good benchmark.

Commodities do not have the same historical average.

 

[bullandvodka]

Watches are a CONSUMPTION. This is the exact opposite of an INVESTMENT. If you think you'll be able to eat in your old age by collecting watches now you are on a fools errand.

The future is uncertain. I wouldn't think you could eat in your old age by selling your old baseball cards, comics, and lunch boxes, but some people are doing it today. The difference here is that these people didn't plan doing so.

 

[wautersjr]

With that kind of money, you would be better off investing in Mutual funds and/or stocks, and maybe ETFs.

And currencies... Thank you very much

 

[Slife]

I just never though it was possible to use watches as a commodity for profit, well unless you are an AD for a certain brand.

But to be frank, Watches are for wearing, not for selling.

 

[alwaysfreewilly]

thanks guys. I agree with what has been said so far. (though some were really getting very serious!! ) which is why I tend to smile and give a light laugh when people come to me and ask me this question.

I mean if I KNOW which watch will appreciate in value in time, I think I would have been an investment guru, and be earning millions playing stocks rather than watches!!

I guess, I will turn these guys into watch collectors along the way.

 

[JBHII]

Historically, people make money in 401Ks, IRAs, and houses. These markets flucuate, and have over time; however, most people do make money over the long term, and averages of 7% a year is a good benchmark.

Commodities do not have the same historical average.

No question. But are you taking a macro view or a micro. Take any individual investment - a stock, a mutual fund, a bond...whatever. "Investing" in it means you're speculating it will go up in value, based on some reasearch you've done. What's the difference in reasearching ths supply and demand of a given watch...say a vintage 1680 Red Sub or a double red Sea-Dweller? There's not guarantee either the watch or the more traditional "investment" will go up in value, but history says they both will.