Investment Value of Luxury Watches

Can a watch be a good investment? The short answer: sometimes. While most luxury watches depreciate the moment you walk out of the store, certain brands, models, and conditions create opportunities for value retention—and occasionally, significant appreciation.

This guide explores which watches hold their value, what factors influence investment potential, and how to approach watch buying with both enjoyment and value preservation in mind.

"Buy the watch you love, and if it appreciates, consider it a bonus—not the primary goal."

Understanding Watch Value

Before diving into specific brands and models, it's important to understand what drives watch value:

Brands That Hold Value Best

Models Known for Appreciation

While past performance doesn't guarantee future results, these models have historically performed well:

• Rolex Submariner — The benchmark sports watch, consistently trading at or above retail
• Rolex Daytona — Years-long waiting lists and legendary status drive premiums
• Patek Philippe Nautilus 5711 — Discontinued in steel, prices have skyrocketed
• Audemars Piguet Royal Oak — The original luxury sports watch, steel models especially
• Omega Speedmaster Moonwatch — Space heritage and limited editions perform well
• Rolex GMT-Master II — "Batman" and "Pepsi" bezels command significant premiums

Factors That Maximize Value Retention

Buy from Authorized Dealers

Full documentation, proper warranty, and clean provenance are essential for resale value. Grey market savings often cost you more in the long run through reduced resale prices.

Keep Everything

Box, papers, warranty card, receipt, hang tags—complete sets command 10-20% premiums over watches sold without documentation. Store everything safely from day one.

Maintain Carefully

Regular service through authorized channels preserves both function and value. Keep service records. Avoid unnecessary polishing—collectors often prefer original finish with honest wear.

Choose Steel Over Gold

Counterintuitively, stainless steel sports watches often retain value better than precious metal versions. Steel Rolex and Patek Philippe models frequently trade above gold equivalents on the secondary market.

Focus on Sport Models

Dive watches, chronographs, and GMT models generally outperform dress watches for value retention. The market favors versatile, durable pieces over formal-only options.

Common Value Mistakes

• Buying limited editions blindly — Not all limited = valuable. Brand and model matter more
• Over-polishing — Removes metal and destroys original finish; collectors notice
• Losing documentation — Box and papers can represent 15-20% of value
• Buying grey market for "investment" — Incomplete provenance hurts resale
• Following hype — Today's hot watch may be tomorrow's depreciation
• Ignoring service history — Neglected watches cost more to restore than they're worth

The Enjoyment Factor

Here's the truth most investment guides won't tell you: the best return on a watch is wearing it.

A Patek Philippe Nautilus sitting in a safe, unworn, might appreciate 20% over five years. But you've spent five years not enjoying a magnificent timepiece. Meanwhile, someone wearing their Submariner daily has five years of daily pleasure—and their watch still retained its value.

Watches are meant to be worn. The memories, the compliments, the daily satisfaction of checking the time on a beautifully crafted instrument—that's the real return on investment.

Final Thoughts

Luxury watches can be reasonable stores of value, and some will appreciate significantly. But approaching watches purely as investments misses the point—and often leads to poor decisions.

Instead, buy watches you love from brands you respect through authorized channels. Keep the documentation, maintain them properly, and wear them with pleasure. If you do this, value retention tends to follow naturally.

The best watch investment is one that makes you smile every time you check the time. Everything else is secondary.