Rolex and other watches as a form of investment diversification?

[wiliercento]

investment

looking at this point from another angle..to me, sometimes its not about the value of the watch itself..its about a certain model's appeal to the mass market and its affordability. my 2 cents

[migzcan]

There will always be collectors for both watches in the future, you just have to enjoy wearing the watch you choose at the present time. Good Luck!

[xinqun]

When you walk into local AD, their top recommendation is daytona. I dont know why.

[triton]

i wonder which AD tell you that.

When you walk into local AD, their top recommendation is daytona. I dont know why.

[xinqun]

i wonder which AD tell you that.

you know why ? Because daytona, they always sell above the premium. That could be a reason , maybe marketing. Its up to you to believe or not. The money is in your pocket

[triton]

steady lah. no wonder you the VIP with hour glass.

you know why ? Because daytona, they always sell above the premium. That could be a reason , maybe marketing. Its up to you to believe or not. The money is in your pocket

[xinqun]

steady lah. no wonder you the VIP with hour glass.

yah man. Dont know learn to pay high price for it. But i still prefer to buy from AD knowing the item are more expensive than outside and i do not want to get cheat without the experience like you. You are the wiser above all.

[triton]

im not that experience. there are many other people who have more experience than me. till today i am still learning.

yah man. Dont know learn to pay high price for it. But i still prefer to buy from AD knowing the item are more expensive than outside and i do not want to get cheat without the experience like you. You are the wiser above all.

[Oceanklassik]

Watches as an investment

Hi all,

I often see and hear about watches being an investment and came across this article that I have lifted from the Business Times (BT). Some of you may find it useful is this is a question in your mind. Hope you enjoy reading


APPRECIATING TIME

How do watches fare as investment-grade assets?

Do you, like many others, hold the opinion that watches make good investments? Well, the general consensus among watch aficionados and genuine horological experts is that it is best to be wary of any quack doctor’s advice that watches generally make good investments.

“‘What can I possibly buy and not lose money?’ is a common question faced,” says Carson Chan, watch specialist at Bonhams (Hong Kong). Bonhams was founded in 1793 and is one of the world’s oldest and largest auctioneers of fine art and antiques.

“It is best that watch collecting begins first as a hobby and not an investment,” he cautions. “Understand what you are buying and why. In order to obtain a win-win situation, you should ideally understand and like the timepiece acquired. For example, a collector may have purchased a $50,000 watch and sold it for slightly less than $40,000 after a year. This translates roughly into depreciation of $1,000 a month but at least he had enjoyed the watch.”

Well said but when pressed again about watches as an investment, Mr Chan had this to say: “In my position, many people ask me what brands of watches can appreciate. To be honest, my answer to them is ‘I really don’t know’. I do not think I am in any position to forecast what is going to be popular.”

In addition to demand, there are many other factors that determine the final hammer price of a specific timepiece at auctions, he explains. These include the design of the watch, its technical features and the rarity of the piece, among other things.

Two of the most-prized and truly investment-grade pieces at Bonham’s May 2011 Modern Wristwatches auction – an 18K gold diamond ruby and emerald Vacheron Constantin “Mysterieuse” pocket watch made in 1988 and a 2009 Patek Philippe 18K gold Ref. 5970J perpetual calendar chronograph – were the top lots sold. The Vacheron Constantin piece was sold for HK$1.8million (about S$280,000) while the Patek Philippe exchanged hands at HK$1.08million (S$169,000).

Like many other collectibles such as wine, jewellery and antiques, there will be many non-investment grade pieces and few truly investible ones. Mr Chan’s advice, especially for novice buyers, is that it is best to do some research and talk to experts at the auction houses.

“If you do your homework, you may even get timepieces at pretty good prices from the auctions,” he says. “But bear in mind that watches are generally not one-of-a-kind objects unlike real art pieces such as paintings ad ceramics.”

Do note that an object may be rare but not necessarily of investment-grade standard. Vintage Porsche 356 Carrera Speedsters are highly desirable and can fetch more than US$300,000 at auctions but these are fully restored ones. Not bad considering that Porsche 356 Speedsters were originally sold for less than US$10,000 in the 1950s.

In fact, speaking of rarity, diamonds might be another investment option. “The overall supply of diamonds is flat but demand is rising faster than Mother Nature’s ability to produce,” says Andrew Coxon, executive vice-president, De Beers Diamond Jewellers.

“If all the polished diamonds in the world were put together, they would be able to fit in one London bus. Diamonds, I am afraid, will not get cheaper. They are very precious,” says Mr Coxon.

But before even concluding that diamonds are generally investment-grade assets, do bear in mind that similar to watches, there are certain criteria to be met. “Each individual gemstone’s value is determined by the supply and demand for its quality level, based on its unique combination of size, shape and brilliance, and the position, presence and degree of inclusions,” as stated in the highly enlightening book “Diamonds: Rough to Diamonds” authored by Yasukazu Suwa and Andrew Coxon.

Article lifted from the Business Times, Friday, August 26th, 2011

[redneckk]

good read. thanks for sharing bro.

[hypersocial]

....“It is best that watch collecting begins first as a hobby and not an investment,” he cautions....

This should be the mindset for most novice watch lovers!!! I never do understand some who wants 'investment' value of their watches, especially buying common Rolex models. Common Rolex models are for enjoyment not INVESTMENT.

Thanks for the good read, bro Oceans.

[zidaneong]

This should be the mindset for most novice watch lovers!!! I never do understand some who wants 'investment' value of their watches, especially buying common Rolex models. Common Rolex models are for enjoyment not INVESTMENT.

Thanks for the good read, bro Oceans.

x2, true. At the end, if you sell the watch at even with your buying price, that i consider as a good deal.

[hypersocial]

x2, true. At the end, if you sell the watch at even with your buying price, that i consider as a good deal.

Ya, bro. Precisely. Can sell at or near buying price is already a SUPER BONUS!!!

Btw, bro Zidane please wear your 'kim kim' President's on the gathering day for me to admire hor?

[mrball]

Best Rolex model for investment?

Taking into account buy price and current discounts, resale value, etc.

Assuming watch is kept BNIB

[Noriki]

None