There are essentially 3 ways to invest in luxury watches. As we said before, the first one considered that it should be reserved exclusively to the connoisseurs of the world of watchmaking. The second, on the other hand, does not require such knowledge but does have (very) important capital. The third way to invest in luxury watches is instead available to individual investors who wish to invest small amounts of money and who do not have extensive knowledge of the market, so we believe that it is the way to invest in luxury watches that is more Suits our readers currently.
1. Buy watches physically
An excellent way to check which models have been revalued (comparing their current prices with those of second-hand) is to go to the largest online market for used luxury watches: the Chrono24 platform. Of course this is also an excellent platform to trade with watches. In addition, this platform has a tool called Watch Collection that allows you to make an assessment of your collection according to:
- Prices of current offers for watches in the same state; Y
- The observed prices of transactions carried out.
- Chrono24 also makes a free estimation of the value for any model , which is very good to have an idea at all times of the value of our investment.
In short, if you have solid knowledge of the world of watchmaking and believe that investing in luxury watches is for you, certainly at Chrono24 you will find an excellent ally to monitor the market and the potential return on your investment.
2. Mechanisms of collective investment in watches
There are mechanisms of collective investment in watches, but these are not very visible. In a first research work we have found only vehicles such as Watchfund , which require a minimum investment of € 250,000 . Of course, in return for expected returns between 20 and 30% and with a quite strange feature (although it can be very interesting for lovers of watches): in exchange for the initial investment the investor receives a number of models (or a model), which you can use until the moment the fund claims them with 20 or 30% increase in value.
3. Invest in listed watch manufacturers
If you do not know too much about watches and you do not have an astronomical capital, but still you are attracted to invest in luxury watches, we have good news: you can invest in luxury watches through the bag .Everyone has had a Swatch watch or know someone who has had one. They are everywhere. What a lot less people know is that the Swatch Group is a watchmaking giant as it controls some of the best known luxury watch brands in the world such as:
- Breguet ,
- Glashütte Original
- Jaquet Droz
Within its high range have the following:
- Union Glashütte
And in its mid range:
- Calvin Klein
As access clocks are the well-known Swatch and Flik Flak (for children). A very important element also to be taken into account is that the Swatch group is also the one that manufactures the very extended ETA movements, which are probably the most used automatic movements in the world for medium and high range watches. Therefore, it could be considered that acquiring shares of the Swatch Group (whose ticker is UHR ) would amount in a certain way to investing in luxury watches in a relatively diversified way as we would invest in a group that controls several brands.
By way of example below we see the quotation of the Swatch Group’s share in the last 10 years. We see that, from a technical analysis point of view, it is currently in a bullish channel and that the price is still far from historical highs, so it could be a good time to invest in the shares of this company. From a fundamental analysis point of view, the issue is more complex, in particular due to the erratic behavior of the global demand for mechanical watches (particularly affected by the introduction of smartwatches).