The Watch Investment Myth: What Actually Holds Value
The Investment Myth
Watch media often reports record auction results, creating the impression that watches appreciate. The reality is that most watches depreciate, and the ones that appreciate are a tiny fraction of the market, often already expensive and difficult to obtain.
What Actually Appreciates
A small number of categories have historically held or increased value:
- Top-tier vintage with documented provenance
- Limited pieces from dominant brands with genuine scarcity
- Exceptional independents with long waiting lists
- Unique or historically significant pieces
Even within these categories, results vary enormously by condition, completeness, and timing.
What Usually Depreciates
- Mainstream production watches bought at retail
- Fashion and licensed brands
- Microbrands outside enthusiast circles
- Anything bought at a speculative peak
The Costs Nobody Counts
Even a watch that holds nominal value loses money in practice:
- Service costs: every three to five years
- Insurance: annual premium
- Opportunity cost: capital tied up in a non-productive asset
- Transaction costs: dealer margins and auction fees
- Inflation: nominal gains may be real losses
Why the Narrative Persists
Record results are newsworthy; ordinary depreciation is not. Media coverage is inherently biased toward extremes. Dealers also benefit from buyers believing watches are assets.
A Healthier Framing
Treat a watch as a consumable luxury good, like a good jacket or a bicycle. You buy it for use and enjoyment. If it happens to hold value, that is a bonus, not a plan.
This framing also improves buying decisions: you choose what you enjoy wearing rather than what you think will appreciate.
If You Do Care About Value
- Buy pre-owned where the initial depreciation has already occurred
- Keep the full set: box, papers, and service records
- Choose established references with liquid demand
- Avoid speculative peaks and hype-driven releases
- Do not modify watches you may resell
FAQ
Do watches hold their value?
Most do not. A small number of rare or highly desirable pieces appreciate, but the majority depreciate from retail.
Is buying a watch an investment?
Generally no. Service, insurance, and transaction costs make it a poor financial instrument. Buy for use.
Which watches hold value best?
Established references from dominant brands, particularly pre-owned pieces in excellent condition with full sets.