WHAT MAKES LUXURY WATCHES INVESTMENT-WORTHY?

In the case of certain wristwatches, this is literally a million-dollar question. In a world of complex investment products from the financial industry's brightest, as well as property and fine art, how is it that a wristwatch can be considered an investment? There is no concise answer to the question, which is made even more complex by the recent flurry of articles highlighting a slump in the secondary-market prices of luxury wristwatches. However, there is a multifaceted set of realities and opinions that cumulatively indicate that the luxury watch market is very viable and worth investing in - and the reasons aren't all purely financial. According to experts and collectors, the following points demonstrate the value of investing in luxury wristwatches.

- SUMIT NAG

LONG-TERM PRICE GROWTH

Let's address the recent slump in the secondary-market prices for prices for luxury wristwatches. Ross Povey, author and expert on Rolex and Tudor watches, shares, "I believe the slump is primarily focused on 'hype' watches. These headline-grabbing corrections overshadow a steady growth in other areas of the market." He goes on to assert, "I believe almost any watch, bought at a retail price, from Rolex, Patek Philippe, Vacheron Constantin or Audemars Piguet will give a decent return on investment. There is a danger in buying watches, regardless of the brand, from the secondary market at significantly above retail prices."

Eric Ku, collector and co-founder of the community-driven online auction house Loupe This, says, "At the same time, the stock market has been even more volatile, so the recent turbulence in global economics has not changed my view on the long-term viability of watches as investments."

Tom Chng, founder of the Singapore Watch Club, reaffirms these observations: "We are living in turbulent times, with many geopolitical uncertainties looming. Let's not forget the pandemic that has thrown the world out of whack. I remember when I first started looking to purchase my first pre-owned timepiece, I had to scour pretty niche forums to connect with collectors looking to sell. Today, watches transact in far higher volumes, and on much more mainstream platforms. They have come a long way in their evolution and adoption by the general population. This transformation has seen timepieces become an alternative asset class that is more robust and liquid than before."