The workmanship, the brand, the exclusivity of the model are all factors that help a timepiece increase in value over time.
Luxury timepieces are the perfect way to invest in an asset that brings you joy today while providing a safe keep for your money.
Many luxury watch brands we know today distil centuries of proud family traditions and unique watchmaking craftsmanship passed down through the generations. Watches started out as luxury accessories worn by the noble French women of the royal court, and they went on to withstand the test of time through the Industrial Revolution and mass production to make a comeback as a status symbol in the modern age.
Today, there are a handful of watch designers whose names have recognition due to their important creations. These brands have become synonymous with luxury and dedication.
The watch market has always been demand-driven. But it has really taken off since the onset of social media when reputation became all the more important. Artists, celebrities, politicians and public figures frequently sport wristwatches in the £5,000 to £100,000+ range.
When buying a luxury watch, you are investing your money into something that will last for your entire lifetime. However, some watches can go far beyond the typical luxury watch price tag to become prized family heirlooms and sound investment assets.
Globally, there are many watch manufacturers. Some are renowned for their practicality, whilst others are lauded for their elegance and complexity. Naturally, as you move from electronic to tourbillon movement, the rarity and price increase.
We help clients obtain sought-after and limited-edition timepieces from reputable watchmakers. Few watches command the reputation and pedigree of the timepieces we are able to acquire on their behalf.
We are portfolio managers that have personal experience in a multifarious range of traditional and alternative investment arenas. These include equities and bonds via banking routes, enterprise investments, corporate bonds, and of course, commodities and tangibles.
We have the ability to utilise our combined expertise, including our experience of losses and profits, to fully understand our clients’ needs and help them to acquire the best tangible assets.
Luxury watches bring a distinctly unique asset to your portfolio. Compare the luxury watch investment to the traditional hedge funds, and you’ll see a significant difference. Based on recent estimates, the luxury watch market grew from $7.5 billion to as high as $9.7 billion in 2020.
Demand for luxury timepieces shows no signs of slowing down. In 2020, the Sotheby’s Important Watches live auction brought in $10.4 million — up 27% from last year — with a Patek Philippe Ref 2499 retailed by Tiffany & Co. selling for $818,600.
According to Deloitte’s 2019 ‘Global Powers of Luxury Goods’ — the average annual sales from the top 32 watch and jewellery companies topped $2 billion in 2017. A follow-up 2018 Bain report stated that the preowned market was worth nearly $25 billion.
Some timepieces in high demand from brands like Richard Mille, Audemars Piguet and Rolex regularly sell at auctions for anything between $100,000 – $500,000 with rare pieces fetching $3 million and above.
It’s not just the craftsmanship; it’s the supply and demand. Luxury watches are produced in limited numbers, and this is the reason why both the retail and secondary markets have increased in value by over 100% in the last decade.
Such an inflation-beating ROI can give many investors the financial freedom they need and desire to retire early or plan a more comfortable life.
In addition to the allure of owning a Patek Philippe or Richard Mille, most understand that many luxury watches hold good investment value, like aged Scotch whisky. Timepieces are quality goods that have historically proved to retain the value paid for them or even become more valuable over time, often significantly.
As ownership is a central theme of our business, you will take full receipt of your timepiece and therefore have the ability to enjoy, store and insure your asset independently.
However, should you require any assistance, we can assist with everything from the purchase and installation of grade A safes to locating independent storage vaults and contacts with specialist insurance brokers.
In addition to this, we can provide supplementary timepiece appraisal services.
Hackstons provides our clients with direct access to a network of dealers interested in purchasing their timepieces.
As an established luxury goods brokerage, we can negotiate the best rate on your behalf and provide the best opportunity for your asset to generate a considerable return on investment.
The resale market is key to the luxury watch sector. High-end timepieces are bought and sold through specific dealers.
Depending on the timepiece you own and the condition at the point of sale, some watch dealers we work with also offer immediate buyback schemes.