"Time is Money." Earlier this year, a rare 1949 Rolex, sold for $1.2 million at a Christie’s auction. In fact, that same auction sold over 400 watches for a total of $26.5 million in sales. As the public is developing a greater awareness and appreciation for timepieces as a smart investment, rare watches have become more than functional jewelry. Luxury watches have become apart of a new investment strategy.Rarity Factors
There are many factors that contribute to a watch’s rarity: limited production, craftsmanship, complicated movement, and brand. A few highly coveted watch brand are Rolex, Patek Philippe, Audemars Piguet and A. Lange & Söhne. Celebrity connections can also add value to a timepiece. One other fascinating aspect about these watches that make them rare is that they are mechanical devices, not electronic, that can take up to three years to craft.Luxury Watches Increase in Value
One rare and great thing about luxury watches is that their value continues to increase. The primary reason is the rising global demand due to rising incomes, increasing aspirations, and heightened awareness of international trends. According to other sources, the overall global interest in watches grew 5.7 percent. Demand is also highest for the most well-known watch brands, such as Rolex and Patek Philippe.The Return
Rare timepieces traditionally increase in value 5-15 percent annually. The more rare and prestigious a watch is, the greater the investment return. For example,a rare 18 karat white gold Patek Philippe purchased in 1995 for $430,000 sold in 2010 for $3.47 million.
Luxury watches are a thing of beauty. But, with today's market, they are also becoming one of the safest investments to make with the best return. What will you invest in this holiday season?