Just like stock prices, the value of a commodity depends on its supply and demand. When you own a luxury watch, your ability to sell it ultimately comes down to its demand in the market and whether someone would be willing to buy it. However, unlike stocks, you cannot liquidate an asset at any time.
Watches are collectors’ items, and their buyers thrive in a niche market. There may be more demand or interest in one model over another, and depending on the watch you own, it may be worth more or less than you expect.
The law of supply and demand is a theory that explains the interactions between sellers of a resource and buyers of that resource. The theory determines how price is affected by the relationship between the availability of a particular product and the desire (or demand) for that product. In general, low supply and high demand increase price and vice versa.
The origin of the watches matters when it comes to the best resale value. The most popular and attractive are luxury Swiss watches. Rolex is one brand known for its best resale value and popularity. Patek Philippe and Audemars Piguet are also solid choices. Most Swiss products are great investments.
If you own a watch from a popular brand and its production is low or the model has been discontinued, it has a better chance of increasing in value in the future. Building on the idea of low production or discontinued models, there is also the idea of limited editions or special/unique models. While a tried and true model can help establish its basic resale value, rare or special features can set some watches apart from others. Perhaps in the future, such details will also distinguish a men’s or women’s smartwatch.
Small details or minor changes can greatly increase the value of a watch, making it worth much more than the original model design, just because it is unique. A perfect example of this is Rolex’s red Submariner, which features the words “Submariner” marked in red letters. Small but important details like this would greatly increase the value of the watch, but may be overlooked by less experienced collectors.
Once again, supply and demand determines everything. Some watch models, whether it is a men’s watch or a ladiesskit, have proven to be very popular or valuable over the years. Rolex Daytona, Rolex Submariners, Patek Philippe Nautilus, Audemars Piguet Royal Oak and Audemars Piguet Royal Oak Offshores are just a few examples. Also, luxury sports watches are a great choice for the best resale value!
You might think that gold luxury watches would have a better resale value, but there is a difficulty because it is sometimes just a belief. It is difficult to sell it because it is not popular. There is not much demand for it, so it will take some time to find a buyer.
On the other hand, stainless steel sports watches are a classic and popular choice. Collectors love the stainless steel sport versions! It’s no surprise that some of the most popular and desirable watch models are Rolex, Patek Philippe and Audemars Pigeut just made of this material.
Another important factor in a watch’s resale value is its condition. If the hardware is heavily worn or damaged, these minor imperfections can negatively affect its overall value – and vice versa. As with any luxury used item, the better the condition, the higher the resale value.
Finally, time is an important factor when it comes to resale value. Just like buying a car, the moment you buy a watch its value will drop. However, over time and depending on many other circumstances, the value may increase.
Main photo: Jutta Wilms/Unsplash