Guest Article
7 Criteria that Make a Luxury Watch a Worthwhile Investment
The era of exorbitant prices for pre-owned luxury watches may be over, yet as investment assets, they remain an attractive alternative to conventional investments like stocks or property, according to the Berlin-based company Timeless Investments.
According to Boston Consulting Group (BCG), the luxury watch market was valued at USD 75 billion in 2021, with pre-owned watches accounting for 30% of that value. BCG forecasts that by 2026, this market will expand to USD 101 billion. In contrast to
volatile financial markets, luxury watches have proven resilient, maintaining their value even during economic downturns.
Nils Johannsen, Asset Manager for luxury watches at Timeless, has identified seven criteria which he believes are crucial in determining whether a luxury watch is simply an exquisite, expensive item or a worthy investment:
‘Not every luxury watch is an investment – when investing in luxury watches, several key factors must be considered that contribute to their long-term growth and potential returns.’
Nils Johannsen
Asset Manager for luxury watches
1. Reference Number and Model
Each luxury watch has a specific reference number that identifies its model, production details, and unique features. Some reference numbers are highly sought after due to their rarity, historical significance, or demand among collectors.
2. Brand and Model Reputation
The reputation of the brand and the history of the model significantly impact its investment potential. Iconic models from prestigious brands like Rolex, Patek Philippe, and Audemars Piguet generally retain their value.
3. Condition and Originality
The condition of the watch is crucial. A well-maintained watch with original parts and minimal restoration often holds a higher value. The presence of original boxes, paperwork, and additional accessories also enhances its collectible worth.
4. Rarity and Production Numbers
Limited production series or discontinued models can increase a watch’s rarity and value. Limited-edition models or those with unique features—such as distinctive dial colours, materials, or factory-set diamonds—often become coveted collector’s items.
5. Market Trends and Demand
Understanding current market trends and demand is essential. Certain models may see a surge in popularity due to cultural trends, brand marketing strategies, or celebrity endorsements. Recently, this has notably affected previously less popular
“niche brands” such as Girard Perregaux, Chopard, Piaget, Breguet, Blancpain, and Cartier.
6. Provenance and History
A well-documented history or previous ownership by a notable figure often adds value to a watch. Recently, watches owned by Michael Schumacher and Sylvester Stallone auctioned at Christie’s and Sotheby’s fetched record-breaking prices in the millions.
7. Complications and Craftsmanship
Advanced complications, like perpetual calendars or minute repeaters, can dramatically increase a watch’s value. Collectors highly value watches with intricate mechanical functions for their technical sophistication. Unsurprisingly, these often rank among the world’s most expensive watches, such as certain Grand Complication models from Patek Philippe.
About Timeless Investments
Based in Berlin, Timeless Investments is one of the world’s first companies to enable investment in collectibles—from watches to art, vehicles, sneakers, wine, trading cards, and memorabilia—via a digital platform using blockchain technology, with entry from as low as €50 per share. The purchase of shares is managed through the Timeless app, with digital transactions documented reliably, securely, and transparently. Timeless also takes responsibility for asset selection, verification, storage, maintenance, and insurance on behalf of clients.
The company was founded in 2018 by Jan Karnath, Andreas Joebges, and Malte Häusler, with the Timeless platform launching in February 2021. To date, Timeless Investments has tokenized over 560 collectibles with a combined value exceeding €25 million. Among Timeless Investments’ current backers are Porsche Ventures, EQT Ventures, SevenAccelerator, C3 Tech VC, and LA ROCA Capital.