Do Watches Appreciate in Value?

In the watch collecting journey, every guy has to go through different stages.

At the start, watches are merely the timekeepers.

But by exploring the nuances of movements, designs, and different types of watches, guys experience a different perspective.

Then comes the biggest turning point of a watch collecting journey, a.k.a “purchasing the first luxury watch.”

It’s when an innate urge arose to ask, “Do watches appreciate in Value?”

There are plenty of factors that come into play. But the overall trend is positive that Watches appreciate their value over time.

This article would be your guide to learning why watches increase in value, which brands retain the value and some case studies.

Why do Watches Appreciate in Value?

In many ways, watches are a unique accessory.

One obvious among them is that a good quality watch hardly loses value over time.

Instead, it gets appreciated with each passing day.

For example, the Patek 5711, released in 2006, had a retail price of around 35K.

Before 2022, a well-conditioned 5711 would go for around 50-60K.

However, the watch was discontinued in 2022. And to this day, it’s easily selling above 100K.

But the logical question would still be, “Why do such Watches appreciate in value?”

And the answer is because “People accept it that way.”

In some ways, it’s like cryptocurrency. People can even value an imaginary currency, and it’s selling for thousands, so why not a watch?

Also, in watches, there is supply vs. demand. People are willing to pay for it, so it’s been sold that way.

Factors Affecting Watch Value Appreciation

First and foremost, nobody can pinpoint which watch will appreciate. It’s a calculated guess of different factors. Here are some of them.

Brand Reputation and Heritage

The brand name plays a significant role in determining the value of a watch.

Some brands have been around for centuries and have established a reputation for producing high-quality, luxurious timepieces.

These brands include Patek Philippe, Rolex, Audemars Piguet, and Cartier.

Their long heritage and reputation can significantly impact the resale value of their watches.

Also, everybody knows that most watch models from certain brands are an obvious success.

This develops a persona that every watch from “that reputed” brand would appreciate. And it does, too.

Watch brands from certain countries also play some role in increasing the watch value. Swiss watch brands, for example, are highly sought after by collectors.

Materials and Craftsmanship

Materials and craftsmanship are crucial in a timepiece’s value.

Precious metals and gemstones boost a watch’s worth. Watches made of gold, platinum, or adorned with diamonds command higher prices.

Craftsmanship, too, plays its part. An intricately designed watch with meticulous detailing and superior execution is a testament to the skill of its creator.

Such watches, often handmade, hold their value well after their release.

Rarity and Limited Editions

The rarity of a watch can increase its value significantly.

Limited editions, special releases, and discontinued models tend to appreciate more in value because they are not as readily available on the market, like our Patek 5711 example above.

Rolex’s Daytona “Paul Newman” model Ref. 6239 has become highly coveted due to its limited production in the 1960s and ’70s.

It later became one of the most expensive watches ever sold at the auctions.

Richard Mille utilizes the same concept in their watch marketing. They produce a limited number of each model, creating demand and driving up the value of their watches.

Sometimes, watches are not rare, but there is a waitlist to get the watch at the retail price.

You have to pay extra to instantly get the watch on your wrist. If you get the watch at retail, it will instantly increase in value.

This is the hidden caveat of rarity, only present with some luxury watches.

Historical Significance

Watches are as much about history as they are about craftsmanship.

Omega, for example, is a Swiss watch brand but very much respected in England due to its history in watchmaking back in the WWII days.

Similarly, certain watch models gain significance and value due to their connection to a particular event or person.

For instance, the Omega Speedmaster, nicknamed the “Moonwatch,” was worn by astronauts during NASA’s Apollo missions.

This historical association adds value and desirability to the watch for collectors and enthusiasts.

Timeless Appeal

A watch that transcends time with its design and appeal will always hold value.

The iconic Rolex Submariner, for example, has been in production since 1953 and still is one of the most sought-after watches today.

Its classic design has stood the test of time and continues to attract buyers.

Similarly, the Cartier Tank watch, first introduced in 1917, is known for its timeless elegance and has maintained its popularity for over a century.

This is due to the watch’s ability to adapt to changing fashion trends while retaining its classic appeal.

Celebrity Endorsements

Celebrities have a huge influence on the value and desirability of watches.

Brands often collaborate with celebrities, using their star power to promote and endorse their watches, ultimately increasing their value.

For example, Paul Newman’s Rolex Daytona has become one of history’s most iconic and valuable watches due to its endorsement and ownership.

Similarly, Omega’s partnership with James Bond has made the Seamaster watch a must-have for franchise fans, boosting its popularity and value.

However, celebrity endorsement doesn’t always work. For example, Hublot sponsors athletes like Usain Bolt, Floyd Mayweather, and Kylian Mbappe.

But Hublot watches neither appreciate in value or it’s a respected brand.

Different Types of Watches and Value Appreciation

Watches come in different styles, functions, and materials, all determining their value and potential for appreciation.

Luxury Watches

Luxury watches are typically made with high-quality materials like gold, diamonds, and other precious stones.

These watches often have intricate designs and complications, making them highly desirable among collectors.

Over time, luxury watches can significantly appreciate value due to their rarity and craftsmanship.

For example, the Patek Philippe Grandmaster Chime sold for over $31 million at auction in 2019, making it the most expensive watch ever sold.

Vintage Watches

Vintage watches are timepieces over 20 years old and have a certain historical significance or unique design.

These watches hold value due to their limited production and rarity and the nostalgia and sentiment attached.

For example, a vintage Rolex Submariner from the 1950s can sell for tens of thousands of dollars, depending on its condition and rarity.

Limited Edition Watches

Limited edition watches are produced in small quantities and often have a unique design or feature that sets them apart from the brand’s regular models.

These watches can be appreciated due to their exclusivity and collectibility among enthusiasts.

For example, the Audemars Piguet Royal Oak Offshore LeBron James limited edition watch was released in 2013. It increased in value due to its rarity and association with the NBA superstar.

Affordable Watches

Affordable watches, such as those from Seiko, Timex, Tissot, Hamilton, and Orient, have their unique charm and place in the horological world.

While they may not inherently seem like investment pieces, certain models can appreciate value over time.

The appreciation, however, is subjective and primarily depends on factors like rarity, historical significance, condition, and whether the watch has been discontinued.

Seiko, for instance, has several models that have gained significant value over the years, including the Seiko “Pogue,” a vintage chronograph initially intended as an affordable timepiece.

Similarly, certain discontinued models of Tissot and Hamilton have also been appreciated.

However, it’s crucial to remember that some affordable watches can also appreciate in value.

But these don’t provide the same return on investment as luxury, vintage, or limited edition watches.

However, you can expect a good-conditioned watch from a reputable, affordable watch brand to sell for the same price even 4 or 5 years later.

Quartz Watches vs. Mechanical Watches

Quartz watches are generally less valuable and collectible than mechanical watches.

This is because they are mass-produced and lack the intricate craftsmanship and engineering that goes into manufacturing a mechanical watch.

On the other hand, mechanical watches are more appreciated and desirable because of handcrafted movements and limited production numbers.

Rarely any Quartz watch is truly ever appreciated in value.

The closest I’ve seen is Tissot PRX, which hasn’t lost its value but is not appreciated.

Watch Brands Increased in Value

Not all watch brands have a high potential for appreciation.

Some brands, like Rolex and Patek Philippe, are known for their high resale value and are often viewed as investments rather than just timepieces.

Other popular luxury watch brands that have shown appreciation in recent years include Omega, Audemars Piguet, and Panerai.

Also, Tag Heuer has seen an increase in value, particularly with their vintage models like the Monaco and Carrera.

Affordable luxury watch brands like Grand Seiko and Longines have shown steady appreciation over the years.

Case Studies and Examples

To get a better understanding of how watches can appreciate value, let’s take a look at some case studies and examples.

1. Rolex Submariner (ref. 116610): Purchased for $8,550 in 2015, valued at $14,300 in 2023.
2. Audemars Piguet Royal Oak (ref. 15400): Bought for $17,800 in 2015, worth $30,600 in 2023.
3. Patek Philippe Nautilus (ref. 5711): An original cost of $34,800 in 2015, appreciated to a staggering $110,000 in 2023.
4. Omega Speedmaster Professional (ref. 311.30): Sold for $5,250 in 2015, appreciated to $7,150 in 2023.
5. Panerai Luminor Base Logo (ref. PAM01000): Acquired for $4,750 in 2015, valued at $6,500 in 2023.
6. TAG Heuer Carrera (ref. CV2010): Bought for $2,950 in 2015, appreciated to $4,200 in 2023.
7. Rolex GMT-Master II (ref. 116710BLNR): Purchased for $8,950 in 2015, valued at $19,700 by 2023.
8. Longines Heritage Military (ref. L28374732): Cost $2,150 in 2015, worth $3,100 in 2023.
9. Seiko Prospex (ref. SRPB51): Sold for $425 in 2015, appreciated to $775 in 2023.
10. Audemars Piguet Royal Oak Offshore (ref. 26470): An acquisition of $26,000 in 2015 rose to $33,000 by 2023.
11. Omega Seamaster Aqua Terra (ref. 231.10): Bought for $4,950 in 2015, appreciated to $6,800 by 2023.
12. Rolex Daytona (ref. 116500LN): Purchased for $12,400 in 2015, valued at $27,500 in 2023.