There is no doubt that there is value in owning a luxury watch, and people love buying them. According to this Statista publication, revenue in the watches segment in the United Kingdom in 2020 amounts to US$1,747m, and the expected growth is 2.4% annually. So, is it worth it to buy a luxury watch? Can it be a good investment? Consider the following tips.
How to Get Financial Gains from a Luxury Watch
Whether you have a single watch or a collection, it can turn out to be a great investment when in the future it becomes more valuable and you sell it at a higher price than what you bought it for. The selling value could even be 100% more than the purchase price or even higher. This is why luxury watches are now being mentioned more often with other investments as stocks. People are buying them in the hope that they will resell them in the future at a higher price. And this doesn’t mean that you can only resell a watch you have never used.
You can buy a watch for personal use and sell it later when you get a good deal. But if you want to do this as a key business, having a collection would be the most profitable path. However, not all luxury watches turn out to be great investments. It’s a matter of doing your research well when buying and hoping the best will come even if it takes a few decades. So, how can you tell if a watch is a good investment? Consider the next point.
Tips for Choosing a Good Investment
There are a couple of factors that can determine the returns you can get from your luxury watch. You should keep these in mind when shopping for a watch. For one thing, the brand matters. You need to choose a brand that holds its value. By buying a brand that holds its value well, you can be sure that it will be in good condition years later, making it easy to resell. However, it won’t remain in good condition if you don’t take good care of it. One of the brands best known for holding their value is Rolex. Look for Rolex models and see how much they are retailing at and previous trends. If you are happy with the trends, you can go for one, for example the Rolex day date which is one of the key brands listed on the CHRONEXT platform. CHRONEXT is a company specialising in luxury watches with buy, sell and trade-in options.
The other thing you need to consider is the possible demand in the future. While you can’t accurately determine if a watch will be in high demand in years to come, some factors can increase the demand for a product in the future. Some include limited editions or how quickly the product sold out, the production quantity and a new model with great features. At times, companies will release a watch with certain features and then modify it later. If there are people who prefer the first edition, then your chances of selling your watch at a higher price increase. The same goes for a limited edition.
Selling the Luxury Watch
To sell your luxury watch fast, ensure you keep it in good condition. Don’t make custom changes other than the ones done by an expert for the watch to fit you properly. Next, keep all the paperwork and accessories associated with the purchase. These include the receipts, the guarantee and any spare parts. Keeping the box too can help.
In that light, make sure you buy your watch from a reputable brand and store. Buyers may shy off when they realise you bought your product from a shop that can’t be trusted. Thus, check on this too. Then, keep checking the trends, demand, changes in prices and reputable sites or people you can sell your products to. You can sell in auctions, to online dealers, to celebrities and people with interest in collecting vintage items or even on social media. When giving the details to potential sellers, ensure you are comprehensive when writing the product information. Dealers will mostly ask you to send the details and images for an initial evaluation. Thus, when taking the photos, make sure they are clear enough. Poor images can cause you to miss out on great sales.
That’s how a luxury watch can be a great investment for you. The key is to do your research well and in a few years, you could be reaping benefits from an asset that doesn’t require any work. Away from the financial benefits, a luxury way can also be a great investment for you in other ways. Wearing that classy watch to work can complement your look and help you feel good about your day. A luxury watch can also give you a feeling of contentment, knowing that you worked hard and treated yourself with something that is valuable and stylish.